846                                        LAWS OF MARYLAND                                Ch. 399

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Sections 266L [[and 266T]] , 266T and 266W(a) of Article
41 of the Annotated Code of Maryland (1971 Replacement Volume and 1972
Supplement), title "Governor - Executive and Administrative Departments,"
subtitle "25. Department of Economic and Community Development," subheading
"Maryland Industrial Development Financing Authority Act," be and they are
hereby repealed and re-enacted, with amendments, to read as follows:

266 L.

The Maryland Industrial Development Financing Authority is authorized to
insure the payment of mortgage loans secured by industrial projects to the extent
(of thirty million dollars ($30,000,000).] HEREINAFTER PROVIDED IN §
266T OF THIS ARTICLE.

266T.

The Authority, upon application of the proposed mortgagors, may insure
mortgage payments required by a first mortgage on any industrial project, upon
such terms and conditions as the Authority may prescribe, provided the aggregate
amount of principal obligations of all mortgages so insured outstanding at any one
time shall not exceed [thirty] SIXTY million dollars [($30,000,000)]
($60,000,000), or an amount equal to five times the balance in the industrial
project mortgage insurance fund, whichever is less. To be eligible for insurance
under the provisions of this subtitle a mortgage shall:

(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] FIVE
million dollars [($4,000,000)] ($5,000,000) for any one project and not to exceed
ninety (90) percent of the cost of the project (as defined in § 266-O) as to real
property, nor seventy (70) percent of the cost of the project (as defined in § 266-O)
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 § 266U, and such depreciation 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, delinquency charges, default remedies,
anticipation of maturity, additional and secondary liens, and other matters as the
Authority may prescribe.