HARRY HUGHES, Governor

1533

(c)    The Secretary, upon receipt of an application and
after such investigation as he deems advisable, may approve
a loan of up to fifty percent of the anticipated project
cost, as determined by the Secretary, but not exceeding
[$1,000,0001 $1,500,000 for any one project. In judging
whether or not to approve a loan and the amount, of a loan,
the Secretary shall consider and determine in addition to
those factors set forth in § 440 (b) OF THIS SUBTITLE, (i)
whether the subdivision has available and committed toward
the project sufficient funds to finance its share of the
anticipated project costs; provided, however, that the
Secretary may consider in lieu of funds on hand official and
noncontingent commitments of funds from federal agencies,
financial institutions, or other reliable sources; and
provided further that the Secretary may grant a conditional
approval for a period not exceeding two years in any case
where application for all or part of balance of the required
funds has been made to a federal agency, financial
institution, or other reliable source and additional time is
required for affirmative action on the application, and (ii)
the subdivision has presented evidence demonstrating its
ability to carry out and complete the project as planned.

(d)     (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 § 440
(c) (3), commencing upon the date of the loan and continuing
for a period of two years thereafter, except as provided
herein.

(2)    Upon the sale of the land or any part
thereof by the subdivision, 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 land
and accrued interest thereon. The principal balance
remaining at the end of two years shall, subject to the
required prepayments in the event of sale or sales, be
amortized over a period not exceeding twenty—five years in
accordance with an amortization schedule approved by the
Secretary.

(3)    The Secretary may extend the two—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.

(e)      The conditions set forth in § 440 (d) shall be
included in the loan agreement and shall apply with respect
to any sale or lease of the project or any part thereof].

(2) EACH LOAN AGREEMENT SHALL INCLUDE: