WILLIAM DONALD SCHAEFER, Governor Ch. 511

(5) ANY OTHER PROVISIONS THAT THE DEPARTMENT
DETERMINES ARE NECESSARY TO SECURE THE LOAN, INCLUDING THE
TAKING OF LIENS AND SECURITY INTERESTS IN PERSONAL OR REAL
PROPERTY.

(D) (1) MORTGAGES OR DEEDS OF TRUST THAT ARE HELD AS
SECURITY FOR LOANS MADE UNDER THIS PART AND ARE IN DEFAULT
MAY BE FORECLOSED BY THE DEPARTMENT AS PROVIDED BY THE
MARYLAND RULES OF PROCEDURE FOR FORECLOSURES IN PRIVATE
TRANSACTIONS.

(2) THE DEPARTMENT IS AUTHORIZED TO TAKE TITLE IN THE
NAME OF THE DEPARTMENT TO ANY PROPERTY FORECLOSED UNDER
THE PROVISIONS OF THIS SUBSECTION AND TO CONVEY TITLE TO ANY
FORECLOSED PROPERTY TO BONA FIDE PURCHASERS.

(E) THE TERM OF A LOAN MAY NOT EXCEED 20 YEARS.

(F) (1) SUBJECT TO THE PROVISIONS OF PARAGRAPH (2) OF THIS
SUBSECTION, THE PROCEEDS OF A LOAN MAY BE USED FOR
RENOVATIONS, EXCAVATION, CONSTRUCTION, OR PURCHASE OF REAL
PROPERTY, FIXTURES, OR EQUIPMENT RELATED TO THE APPLICANT'S
FACILITY.

(2) THE PROCEEDS OF A LOAN MAY NOT BE USED FOR
REFINANCING EXISTING LOANS, SUPPLIES, OR INVENTORY.

(G) (1) A LOAN MAY NOT EXCEED THE SMALLER OF $250,000 OR 50
PERCENT OF THE TOTAL AMOUNT OF INVESTMENT FOR RENOVATIONS,
CONSTRUCTION, OR PURCHASE OF REAL PROPERTY, FIXTURES, OR
EQUIPMENT THAT ARE RELATED TO THE APPLICANT'S FACILITY AND
ARE REQUIRED TO EXPAND OR DEVELOP THE APPLICANT'S FACILITY,
BUT NOT FOR FINANCING OR REFINANCING OF WORKING CAPITAL,
ACCOUNTS, SUPPLIES OR INVENTORY OR FOR REFINANCING EXISTING
LOANS.

(2) THE APPLICANT'S INVESTMENT MAY NOT BE LESS THAN 50
PERCENT OF THE TOTAL AMOUNT OF INVESTMENT NEEDED TO EXPAND
OR DEVELOP THE APPLICANT'S FACILITY.

13-128.2.

IF AN APPLICANT VIOLATES ANY PROVISION OF THE LOAN
DOCUMENTS OR CEASES TO MEET THE REQUIREMENTS OF THIS PART,
THE DEPARTMENT MAY:

(1) WITHHOLD FROM THE APPLICANT FURTHER ADVANCES
OF LOAN PROCEEDS UNTIL THE APPLICANT COMES INTO COMPLIANCE;

AND

- 2297 -