Marvin Mandel, Governor                       1391

(1)  Be one which is made by a mortgagor as defined herein and
held by a mortgagee approved by the Authority;

(2)  Involve a principal obligation, including initial service charges
and appraisal, inspection and other fees approved by the Authority,
not to exceed four million dollars ($4,000,000) for any one project
and not to exceed ninety (90) percent of the cost of the project (as
defined in Section 266-0) as to real property, nor seventy (70) per-
cent of the cost of the project (as defined in Section 266-0) as to
machinery and equipment;

(3)  Have a maturity satisfactory to the Authority but in no case
later than twenty-five (25) years from the date of the insurance
except in the case of machinery and equipment, for which the
maturity is to be no more than fifteen (15) years from the date
of the insurance but in no case beyond the normal useful life of
the machinery and equipment.

(4)  Contain complete amortization provisions satisfactory to the
Authority requiring periodic payments by the mortgagor which may
include principal and interest payments, cost of local property taxes
and assessments or payments in lieu thereof, land-lease rentals if
any, hazard insurance on the property, such mortgage insurance
premiums as are required under Section 266U, and such deprecia-
tion payments as may be necessary to maintain the integrity of
the project until principal has been completely amortized, all as
the Authority from time to time prescribes or approves.

(5)  Be in such form and contain such terms and provisions with
respect to property insurance, repairs, alterations, payment of taxes
and assessments or payments in lieu thereof, default reserves, de-
linquency charges, default remedies, anticipation of maturity, addi-
tional and secondary liens, and other matters as the Authority may
prescribe.

(6)  Not have a maturity later than the initial term of the lease
of the property on which the mortgage is granted; provided, how-
ever, that this shall in no way preclude the prepayment of any
mortgage so insured.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1972.

Approved May 26, 1972.

CHAPTER 464
(Senate Bill 809)

AN ACT to add new Section 706 to Article 27 of the Annotated
Code of Maryland (1971 Replacement Volume), title "Crimes and
Punishments," subtitle "Places of Reformation and Punishment,"
to follow immediately after Section 705 thereof, and to be under
the new subheading "Community Correction Centers," to provide
, SUBJECT TO THE APPROVAL OF THE LOCAL GOVERN-