Marvin Mandel, Governor                          1199

sanitary, and other laws or regulations applicable to the project;
(iv) whether and to what extent federal or other funds are available
or are likely to become available for the project; and (v) such other
factors as the Secretary deems relevant.

(c)   (1) Upon approval of a loan, the Secretary shall enter into
a loan agreement with the borrowing subdivision providing for pay-
ment of interest only, at a rate determined by the Secretary in ac-
cordance with this section, commencing upon the date of the loan
and continuing until the land is sold or leased by the subdivision
in accordance with this section or for five years from the date of the
loan, whichever is sooner. Upon any such sale of the land or part
thereof, the entire purchase price shall be applied in reduction of
the principal balance of the loan plus accrued interest thereon. Upon
any such lease, the subdivision shall commence amortizing the loan
over a period not exceeding forty years in accordance with an amor-
tization schedule approved by the Secretary. If, at the end of five
years from the date of the loan, the subdivision has not sold or
leased all of the land in accordance with this section, it shall com-
mence amortization of the remaining balance of the loan over a
twenty year period in accordance with an amortization schedule
approved by the Secretary.

(2)   The Secretary may extend the five year non-amortization
period for an additional period not exceeding two years upon a finding
that the delay arose from unforeseen or extraordinary circumstances
and that the purposes of this subtitle can best be served by an
extension. The Secretary may require that any period of extension
be deducted from the period of amortization.

(3)  The rate of interest applicable to loans under this subtitle
shall be equal to the effective rate applicable to the most recent
general obligation bonds issued by the State (effective rate being
the stated rate plus any discount from par at which the bonds
were sold) plus one-eighth of one percent.

(d)   The following conditions, which shall be included in the loan
agreement, shall apply with respect to any sale or lease of the
project or any part thereof:

(1)   The borrowing subdivision shall not sell, lease, or otherwise
convey the land or any part thereof except for purposes consistent
with this subtitle. The borrowing subdivision shall give the Secretary
at least thirty days prior written notice of any proposed sale, lease,
or conveyance, and the Secretary, if he determines that the pro-
posed sale, lease, or conveyance is not consistent with the purposes
of this subtitle, may file an action in a court of competent jurisdic-
tion to enjoin the transaction.

(2)   The land shall not be sold for an amount less than the prin-
cipal balance and accrued interest owed by the subdivision to the
State under the loan agreement applicable to the land, nor more
than the greater of (i) the current market value at the time of
sale, as determined by averaging the appraisals of two qualified
appraisers approved by the Secretary plus the amount of interest
paid by or accruing to the subdivision under the loan agreement
up to the time of sale and any other direct expenses of the sub-
division with respect to its acquisition of the land, or (ii) the mini-
mum amount set forth above. If the sale is for part, but not all,