1202                             Laws of Maryland                      [Ch. 360

by an extension. The Secretary may require that any period of
extension be deducted from the period of amortization.

(e)  The conditions set forth in Section 432 (d) shall be included
in the loan agreement and shall apply with respect to any sale or
lease of the project or any part thereof.

(f)  The loan agreement shall be recorded among the Land Rec-
ords of the subdivision in which the land is located, and shall con-
stitute a purchase money first lien upon the land and improvements.

(g)  The Secretary may, upon application and after investigation,
approve a loan not exceeding $7,500 and on an equal matching basis
with funds of the borrowing subdivision, for the purpose of financ-
ing planning and/or engineering study costs of or for a project
situate or to be situate on land owned by or under option to the
borrowing subdivision. Upon approval of any such loan, the Secre-
tary and the subdivision shall enter into a loan agreement requir-
ing repayment within five years at an interest rate calculated pur-
suant to Section 432 (c) (3) and in accordance with an amortization
schedule approved by the Secretary.

434. Delegation to local economic development agency.

A subdivision may delegate the planning and carrying out of
a project under Sections 432 and 433 to a municipality located within
the subdivision or to a local economic development agency; provided
however, that no such delegation shall relieve the subdivision of any
obligation incurred under any loan agreement executed pursuant
to this subtitle.

435.    Waiver of first lien requirement; releases.

Notwithstanding any other provision of this subtitle, the Secretary
may waive the requirement that a loan agreement executed pursuant
to this subtitle constitute a first lien on the land and improvements
if he finds that (i) subordination of the State's interest is necessary
to development or completion of the project, and (ii) such sub-
ordination of the State's interest is necessary to development or
completion of the project, and (ii) such subordination will not
jeopardize the probability of repayment to the State or have an
unduly adverse effect on the State's security for repayment. The
Secretary may, upon the sale of any part of the land secured by
a loan agreement and prepayment of principal as provided hi
this subtitle, execute a partial release of such land from the lien
of the loan agreement.

436.    Borrowing by subdivisions.

Each subdivision is hereby authorized to issue general obligation
bonds or otherwise borrow money in an amount not exceeding one
half of one percent of the total assessed value of property heated
within the subdivision subject to taxation at the full tax rate of the
subdivision in order to obtain funds to finance its share of project
costs for projects in which the State participates under this subtitle.

437.    Maryland Industrial Land Loan of 1972.

(a) The Board of Public Works is hereby authorized and directed
to issue a State loan to be known as the "Maryland Industrial
Land Loan of 1972" in the aggregate sum of Six Million Dollars