HARRY HUGHES, Governor                                  1531

the same proportion which the said current market value
bears to the current market value of all the land included
in the project, and (ii) that part of the principal balance
and accrued interest equal to the proportion which the
current market value of the land sold bears to the current
market value of all the land included in the project. The
Secretary may, with the approval of the Board of Public
Works, waive the minimum or maximum price requirements of
this section upon a showing of good cause by the
subdivision.

(3) 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 required prepayment of the
loan shall be made"].

(2) EACH LOAN AGREEMENT SHALL INCLUDE;

(I)    A PROVISION FOR PAYMENTS OF INTEREST
ONLY FOR A 5-YEAR PERIOD FROM THE DATE OF THE LOAN;

(II)   A PROVISION FOR PAYMENTS OF   PRINCIPAL
AND INTEREST, IN ACCORDANCE WITH AN AMORTIZATION     SCHEDULE
THAT THE SECRETARY APPROVES, FOR NOT MORE THAN   A 40-YEAR
PERIOD FROM THE END OF THE 5-YEAR PERIOD;

(III)  A PROVISION FOR AN INTEREST RATE THAT
EQUALS THE NET INTEREST COSTS OF THE MOST RECENT SALE OF
STATE GENERAL OBLIGATION BONDS BEFORE THE DATE OF THE LOAN
PLUS 1/8 OF 1 PERCENT;

(IV)   A PROVISION THAT REQUIRES THE
BORROWING SUBDIVISION TO GIVE THE SECRETARY AT LEAST 30
DAYS' PRIOR WRITTEN NOTICE OF ANY PROPOSED SALE, LEASE, OR
CONVEYANCE AND THAT REQUIRES THAT PRIOR WRITTEN APPROVAL OF
THE SECRETARY BEFORE THE SALE, LEASE, OR CONVEYANCE, WHICH
APPROVAL THE SECRETARY SHALL GRANT UNLESS THE SALE, LEASE,
OR CONVEYANCE VIOLATES A PROVISION OF THE LOAN AGREEMENT OR
IS CLEARLY INCONSISTENT WITH THE PURPOSES OF THIS SUBTITLE;
AND

(V)    A PROVISION THAT REQUIRES, ON SALE OF
ANY PORTION OF THE LAND, PREPAYMENT OF THE PRINCIPAL OF THE
LOAN FROM THE SALE PROCEEDS IN AN AMOUNT THAT EQUALS THE
AMOUNT OF THE ORIGINAL LOAN MULTIPLIED BY THE PROPORTION OF
THE LAND SOLD TO THE TOTAL LAND FOR WHICH THE LOAN WAS MADE
ORIGINALLY AND A PROVISION FOR REDUCING THE AMORTIZATION
PAYMENTS ACCORDINGLY.

(3) THE LOAN AGREEMENT MAY CONTAIN REGULATORY
AND SECURITY PROVISIONS.