The proceeds of a loan made through the Program may be used to: Make up to 36 payments of principal and interest on the superior mortgage loan or loans as follows: Up to 12 of the payments may be payments which are overdue and unpaid at the time the loan made through the Program closes, Not more than 24 of the payments may be payments which become due after the loan through the Program closes, and Not more than a total of 36 of the payments of principal and interest may be made from the proceeds of the loan, whether the payments are as described in § A(1)(a) or (b), above, or a combination of them; Pay any of the following fees, taxes, premiums, or costs which are unpaid and overdue at the time the loan closes, or which become due during the first 24 months after the loan closes if the total does not exceed 20 percent of the total loan amount: Late fees, Real property taxes, Insurance premiums, or Fees or costs such as homeowners' association dues, which the Program determines are necessary to bring or keep the superior mortgage loan or loans current; Pay for any of the following costs associated with the Program loan: Closing costs as defined in Regulation .03B(4), above, Application fees, and Fees for financial counseling as described in Regulation .12, below. Loan proceeds shall be disbursed by the Program directly to the mortgagees or such other parties as may be owed payments or fees. Loan proceeds may not be disbursed directly to the borrower.