170V Maryland Manual

term, fixed-rate, tax-exempt financing to smaller
companies and to provide access to regional and
national tax-exempt capital markets. By pooling
many small loans, MIDFA sells its own "umbrel-
la" bonds in the public bond market and uses the
sale proceeds to make loans to individual compa-
nies to finance specific facilities. In order to
successfully market and sell umbrella bonds, MID-
FA may insure the bonds through its Bond
Insurance Fund.

Both the Traditional and Umbrella Programs
benefit participating companies by providing loans
that are for a higher percentage of the costs of the
facility, at a lower interest rate, and for a longer
term than is normally available through conven-
tional financing.

Under the Conventional Loan Program, MID-
FA may insure a loan or other obligation, insure
the payment of premiums or fees necessary to
obtain insurance, guarantees, or other credit sup-
port from a third party, or pay such premiums or
fees. Insurance provided by the Authority may not
exceed the lesser of either 80 percent of the sum of
the principal amount of the loan or other obliga-
tions plus all accrued interest thereon, or $1
million per transaction.

MIDFA may insure both asset-based and non-
asset based financings. Examples of the types of
loans and other obligations that may be insured by
the Authority include Term Loans, Start-Up
Loans, Acquisition Loans, Letters of Credit, Leas-
ing Transactions, and Revolving Loans.

To participate in MIDFA'S programs, a compa-
ny must generally qualify in each of three basic
categories: legal eligibility, economic impact, and
credit worthiness (Code Financial Institutions Ar-
ticle, secs. 13-101 through 13-141; Code 1957,
Art. 41, secs. 266A through 266-1; Federal Inter-
nal Revenue Code, sec. 103).

MIDFA'S policy and decision-making body is a
nine-member Authority. Seven members are ap-
pointed to five-year terms by the Secretary of
Economic and Community Development with the
approval of the Governor. The Secretary of Eco-
nomic and Community Development or his desig-
nee, and either the State Treasurer or Comptroller
of the Treasury, as designated by the Governor,
serve ex officio. The Authority appoints an Execu-
tive Director who serves as Secretary.

OFFICE OF SEAFOOD MARKETING

Gordon P. Hallock, Program Director

45 Calvert St.
Annapolis 21401 Telephone: 269-3461

The Office of Seafood Marketing (OSM) pro-
motes increased consumption and distribution of
Maryland seafood. It also seeks efficient methods
to reduce cost and improve the quality and market-
ability of the product.

OFFICE OF TOURIST
DEVELOPMENT

Kurt P. Alverson, Director

45 Calvert St.
Annapolis 21401 Telephone: 269-2686

The Office of Tourist Development (OTD) pro-
motes Maryland's scenic, recreational, cultural,
and historic attractions. It also provides matching
funds for local jurisdictions to implement pro-
grams that complement State efforts to attract new
visitors to Maryland.

DIVISION OF HOUSING AND
COMMUNITY DEVELOPMENT

Ardath M. Cade, Assistant Secretary for Housing
and Community Development

45 Calvert St.
Annapolis 21401 Telephone: 269-2468

The Office of the Assistant Secretary for Hous-
ing and Community Development provides policy
direction and oversees and coordinates the Com-
munity Development Administration, the Mary-
land Housing Fund, the Maryland Industrial and
Commercial Redevelopment Fund, Codes Admin-
istration, and the Division of Local and Regional
Development, which encompasses the historical-
cultural agencies of the State. The Neighborhood
Housing Service Program (which administers
grant funds), the Housing Policy Commission, and
the Affordable Housing Conference Committee are
all staffed by this office.

COMMUNITY DEVELOPMENT
ADMINISTRATION

Trudy McFall, Director

45 Calvert St.
Annapolis 21401 Telephone: 269-3161

The Community Development Administration
(CDA), Maryland's housing finance agency, was
created by Chapter 527, Acts of 1970, in recogni-
tion of a statewide housing shortage. CDA's man-