A basic prerequisite for MIDFA participation is
that new jobs and new taxes be created for Mary-
land in the process. In its evaluation the Authority
must place considerable weight on the relative eco-
nomic impact of each project for which loan ap-
proval or insurance is sought. This contribution to-
gether with the credit worthiness of the company
and the collateral value of the land, building, and
equipment being financed form the major basis for
approval or disapproval by the Authority.

MIDFA may insure all, part, or none of first
mortgage loans on land and buildings up to 90
percent of their total cost with maturities of up to
twenty-five years. MIDFA may also insure all,
part, or none of the first mortgage loans on ma-
chinery and equipment up to 70 percent of total
cost, with maturities ol up to fifteen years or
maximum useful life, whichever is less. In either
case up to 100 percent financing is available.

Mortgage loans insured by MIDFA are limited
in principal amount to $5,000,000 per project.
MIDPA's total insurance exposure for all loans
may not exceed an amount equal to five times the
reserve fund.

MIDFA insured mortgage loans may be made
for new, expanded, acquired, or rehabilitated
property in the following seven business catego-
ries: manufacturing; warehousing of manufactured
goods; research and development facilities; office
buildings for company headquarters or regional
office use; certain tourist or convention facilities;
mercantile or service businesses that primarily
serve out-of-state markets; and certain
improvements related to port operations. MIDFA
may participate only in loans for fixed asset fi-
nancing. It may not approve loans for working
capital or refinancing purposes.

A business may obtain a MIDFA insured loan in
one of two ways. First, it may request local govern-
ment participation in MIDFA financing whereby
the county or municipality purchases the property,
obtains a tax-exempt mortgage loan from a lender,
and then leases the property to the business, using
the lease as additional collateral for the mortgage
loan. Using this method, the tenant may acquire the
facility for nominal consideration when the loan is
paid off. Second, a business may arrange a mort-
gage loan directly with a lender at prevailing com-
mercial loan rates. In either case, the county or mu-
nicipality has no direct responsibility for repayment
of the loan. With local government participation,
tax exempt interest rates are passed on to the indus-
trial prospect through reduced rentals under the
lease since rental payments are geared to principal
and interest obligations of the loan.

By the end of Fiscal Year 1978, MIDFA had
approved eighty-two loans totalling $69,000,000.
Seventy-five loans are currently outstanding total-
ling $54,500,000, with an insurance exposure of
$28,000,000 (Code 1957, Art. 41, sees. 266J-CC).

MARYLAND COMMISSION FOR LAT-
IN AMERICAN AFFAIRS

Chairperson: Roland H. del Mar
Executive Assistant: Mrs. Leo Weintraub

918 - 16th Street, N.W.
Washington, D.C. 20006 Telephone:(202) 293-2494

The Governor appointed this Commission in
1968 at the request of the General Assembly to ini-
tiate and coordinate programs designed to foster,
improve, increase, and encourage trade, tourism,
and cultural exchanges between the free countries
of Central and South America and the State of
Maryland (Res. No. 21, Acts of 1968). The Com-
mission consists of representatives of business, la-
bor, education, tourism, and the public at large.
The Commission is to report to the Governor and
General Assembly from time to time.

DEVELOPMENT CREDIT CORPORA-
TION OF MARYLAND

OFFICERS

Chairperson of the Board: William A. Beasman,
Jr.

President and Chief Executive Officer: W. G.
Brooks Thomas

Treasurer: R. Kenneth Rous
Secretary: Donald R. Wenderoth

1301 First National Bank Building
Baltimore 21202 Telephone: 685-6454

The General Assembly authorized the estab-
lishment of the Development Credit Corporation
of Maryland by Chapter 822, Acts of 1959, to
stimulate business and industry in the State of
Maryland by making loans available to small
businesses that would not qualify for loans from
conventional institutions such as banks or insur-
ance companies.

The Corporation consists of two classes of
participants: members and stockholders. Only fi-
nancial institutions—those institutions whose ac-
tivities include lending or investing money—may