1274                             LAWS OF MARYLAND                        [CH. 589

purchase or lease and by the acceptance of gifts, grants, bequests,
devises or loans; provided, however, that no obligation of the cor-
poration shall be a debt of the state, and the corporation shall have
no power to make its debts payable out of any moneys except those
of the corporation.

(c)   To enter into contracts with institutions of higher education,
upon such terms as may be agreed upon between the corporation and
any such institution, to provide for the administration by such in-
stitutions of any loan, or guarantee of a loan, made by the corpora-
tion, including applications therefor and repayment thereof.

(d)   To sue and be sued in the name of the corporation. Process
in any action or proceeding may be served in the manner provided
by the corporation laws.

(e)  To adopt rules and regulations, not inconsistent with law,
governing the application for and the granting, administration and
repayment of loans, or the guarantee of loans, made by the corpora-
tion, and governing any other matters relating to the activities of
the corporation. The board shall require all persons borrowing from
the corporation, or borrowing funds guaranteed by the corporation,
to pay interest on the amount borrowed during the term of the loan
in such amount not exceeding six per centum per annum and at such
intervals as the board may fix.

(f)   To perform such other acts as may be necessary or appro-
priate to carry out effectively the objects and purposes of the cor-
poration, as specified in this article.

6.  No loan made or guaranteed by the corporation shall bear in-
terest at a rate in excess of six per cent per annum; nor shall the
corporation guarantee any loan which bears interest at a rate higher
than the then prevailing rate of interest up to a maximum of six per-
cent per annum which the lender charges to other persons for similar
type loans which are not guaranteed by the corporation, unless the
board determines that such a higher rate of interest is justified by
special circumstances and would be consistent with the general objec-
tives of the corporation.

7.   (a) The terms and conditions of any loan made or guaranteed
by the corporation shall not require the borrower thereof to com-
mence the repayment of his loan earlier than one year following his
completion or other termination of the college program for which
such loan was made or three months after he becomes regularly em-
ployed or self-employed following such completion or other termina-
tion of his college program or upon the expiration of six years from
the granting of the loan, whichever occurs first. Such a borrower
shall not be required to repay in full any such loan earlier than within
four years following his completion or other termination of his col-
lege program where the principal amount of the loan does not ex-
ceed the sum of fifteen hundred dollars, or six years where such
principal amount is fifteen hundred dollars or more but less than
three thousand dollars, or eight years where such principal amount
is three thousand dollars or more, but less than five thousand dollars.

(b) Notwithstanding anything to the contrary provided in this
section, the corporation may make or guarantee a loan under terms
and conditions with respect to repayment which are more lenient or