D

MARYLAND INDUSTRIAL AND
COMMERCIAL REDEVELOPMENT FUND
(MICRF)

K. Rudolph Schafert, Director

217 E. Redwood St.
Baltimore, MD 21202 333-4304

The Maryland Industrial and Commercial Rede-
velopment Fund (MICRF) began operations in
1980. To provide supplemental financing that sup-
ports Local commercial or industrial redevelopment
efforts, the Fund administers State loans, grants,
and loan guarantees to local governments.

Fund money is used to promote private invest-
ment in industrial and commercial redevelopment
projects that retain jobs, create new jobs, and in-
crease tax revenues. MICRF funds may be ex-
pended directly by a Local jurisdiction, or passed
through to a third party committed to carrying out
the project (Code 1957, Art. 83A, secs. 5-501
through 5-507).

MARYLAND INDUSTRIAL LAND ACT
(MILA) PROGRAM

K. Rudolph Schafert, Director

217 E. Redwood St.
Baltimore, MD 21202 333-4304

The Maryland Industrial Land Act (MILA) Pro-
gram began in 1972 (Chapter 360, Acts of 1972).
The intent of the Program is to ensure appropriate
sites for industry throughout the State. The Pro-
gram may acquire and preserve such sites for the
State in partnership with the local government
(Code 1957, Art. 83A,secs. 5-401 through 5-414).

MARYLAND INDUSTRIAL
DEVELOPMENT FINANCING AUTHORITY

(MIDFA)

Chairperson: Joseph Haskins, Jr., 1989
Vice-Chairperson: William J. Detweiler, 1989

Appointed by Secretary of Economic &
Employment Development with Governor's
approval: Thomasine M. Tarsell, 1991; Bernard
Roman, 1992; Thomas H. Mullaney, 1992;
William F. Brooks, Jr., 1993; one vacancy.

Ex officio: J. Randall Evans, Secretary of Economic &
Employment Development; Louis L. Goldstein.
Comptroller of the Treasury.

Benjamin L. Hackerman, Executive Director &
Secretary

217 E. Redwood St.
Baltimore, MD 21202 333-4263

The Maryland Industrial Development Financ-
ing Authority (MIDFA) was created in 1965
(Chapter 714, Acts of 1965). The Authority pro-

epartment of Economic &EmploymentDevelopment/197

vides financial assistance to enterprises seeking to
locate or expand operations in Maryland.

MIDFA operates four loan programs. Under its
Traditional and tax-exempt Umbrella Programs,
manufacturing companies can finance land acquisi-
tion and the purchase of all types of buildings and
equipment. The Bond Insurance Fund is used as
reserves for financial assistance provided under the
Traditional and Umbrella Programs.

Under its Conventional Loan Program, MIDFA
insures many types of conventional loans made by
financial institutions. The Authorized Purpose
Fund is used as reserves for loans and other obliga-
tions insured under the Conventional Loan Pro-
gram.

MIDFA also may issue bonds under and in ac-
cordance with the Maryland Economic Develop-
ment Revenue Bond Act.

Through the Traditional Program and its Bond
Insurance Fund, MIDFA insures all or any part of
the payments of principal and interest under tax-ex-
empt economic development revenue bonds issued
by Maryland counties, municipalities, industrial de-
velopment authorities, and other Maryland public
bodies to finance a specific facility for a manutactur-
ing company. Revenue bonds are exempt from fed-
eral and Maryland income tax (but not from real
estate or personal property taxes). Therefore, inter-
est rates on these bonds are generally lower than
interest rates on conventional loans.

; Under its Umbrella Program, MIDFA may issue,
sell, and insure revenue bonds to provide long-
term, fixed-rate, tax-exempt financing to smaller
companies and to provide access to regional and
national capital markets. By pooling many small
loans, MIDFA sells its own "umbrella'' bonds in the
public bond market. Sale proceeds from these
bonds are made available as loans enabling individ-
ual companies to finance specific facilities.

; The Traditional and Umbrella Programs benefit
j companies by providing loans for a higher percent-
age of the costs of the facility, at a lower interest rate,
' and for a longer term than conventional financing.

Under the Conventional Loan Program or the
Export Financing Program, MIDFA may insure a
' loan or other obligation; insure the payment of
premiums or fees necessary to obtain insurance,
guarantees, or other credit support from a third
party; or pay such premiums or fees. Insurance
provided by the Authority may not exceed the lesser
. of either 80 percent (or 90 percent in the case of
export financing) of the sum of the principal
amount of the loan or other obligations plus ac-
i crued interest thereon, or $1 million per transac-
tion.