VETOES

secure the loan, including the taking of liens and security interests in real and personal
property.

(d) Mortgages or deeds of trust held as security for loans made under this
subsection which are in default may be foreclosed by the Department in the same
manner as provided by the Maryland Rules of Procedure for foreclosures in private
transactions. The Department is authorized to take title in its name to any such
property foreclosed as well as to convey title to such property to bona fide purchasers
thereof.

(e) The term of the direct loan may not exceed 20 years.

(f) The applicant for a direct loan to finance a child care center must agree to
operate the child care center for at least the term of the loan and to repay the
outstanding loan in full upon transfer, sale, or refinancing of the facility prior to the end
of the loan term; and the direct loan documents may provide for penalties for any
applicant who fails to operate the child care centers for the entire term of the loan.

(g) The Department may make direct loans to child care centers whether or not
they are located in applicants' homes but a minimum of a direct loan for a child care
facility located in a home shall be $15,000.

(h) The proceeds of the direct loans may be used for renovations, construction,
or purchase of real property, fixtures, or equipment related to the child care facility, but
not for refinancing existing loans, working capital, supplies, or inventory.

(i) (1) Except as provided in paragraph (2) of this subsection, a direct loan
may not exceed 50 percent of the total amount of investment for renovations,
construction, or purchase of real property, fixtures, or equipment affixed to the real
estate and required to expand or develop the child care facility.

(2) An applicant for a direct loan under this subtitle who is also receiving
a loan guaranteed by the Day Care Facilities Loan Guarantee Fund under Subtitle 2 of
this title shall be limited to a direct loan of not more than 20 percent of the total
amount of investment required for the purposes specified in paragraph (1) of this
subsection.

(3) The applicant shall provide the remainder of the total funds required
for the purposes specified in paragraph (1) of this subsection.

(J) A FAMILY DAY CARE PROVIDER WHO APPLIES FOR A GRANT
SHALL:

(1) AGREE TO PROVIDE FAMILY DAY CARE FOR AT LEAST 1
YEAR; AND

(2) AGREE TO PROVIDE CARE FOR:

(I) A CHILD WHO IS SUBSIDIZED BY THE STATE
PURCHASE-OF-CARE PROGRAM;

(II) AN INFANT UNDER THE AGE OF 1 YEAR;
- 3210 -