1530

LAWS OF MARYLAND

Ch. 528

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.

(2)    The Secretary may extend the five-year
nonamortization 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 proposed sale, lease, or conveyance is not
consistent with the purposes of this subtitle, may file an
action in a court of competent jurisdiction to enjoin the
transaction.

(2)    The land shall not be sold for an amount
less than the principal 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
subdivision with respect to its acquisition of the land, or
(ii) the minimum amount set forth above. If the sale is for
part, but not all, of the land, the alternative maximum
prices and the minimum price shall be (i) the current market
value of the part sold plus such part of the interest and
direct expenses as may be apportioned to the part sold in