1658                                          LAWS OF MARYLAND                        [Ch. 422

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Sections 440 (c) (1) , 440(d)(4) , 440 (f),
441(d)(2) and 441(g) of Article 41 - Governor-Executive
and Administrative Departments, of the Annotated Code of
Maryland (1971 Replacement Volume and 1973 Supplement) be
and they are hereby repealed and re—enacted, with
amendments, to read as follows:

Article 41 — Governor—Executive and Administrative
Departments

440.

(c)(1) Upon approval of a loan, the Secretary shall
enter into a loan agreement with the borrowing
subdivision providing for payment of interest only, at a
rate determined by the Secretary in accordance 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]] SO MUCH OF THE SALE PRICE AS
EQUALS THE AMOUNT OF THE LOAN TIMES THE PROPORTION OF THE
LAND SOLD OF THE TOTAL LAND COVERED BY THE LOAN 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
amortization 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 commence
amortization of the remaining balance of the loan over a
twenty—year period in accordance with an amortization
schedule approved by the Secretary.

(d) (4) Any lease of the land shall provide for
annual rental payments in amounts at least equal to the
amortization payments required to be made by the
subdivision. A lease may contain an option on the part
of the lessee to purchase the land, provided that (i) the
option price is not less than the minimum price at which
the land could be sold, as set forth in subsection (d)(2)
hereof, excluding any rental payments made or required
under the lease, and (ii) upon the exercise of any such
option and payment of the option price, the [[entire
principal balance and accrued interest owed by the
subdivision under the loan agreement shall become
immediately due and payable]] REQUIRED PREPAYMENT OF THE
LOAN SHALL BE MADE.

(f) The Secretary may, upon application, and after
investigation, approve a loan not exceeding [$5,000]