HARRY HUGHES, Governor                                  1535

(d)    On approval of a loan, the Secretary shall enter
into a loan agreement with the borrowing political
subdivision providing for payment of interest only, at a
rate determined by the Secretary in accordance with §
440(c)[(3)] (2)(III) of this [subheading] SUBTITLE,
beginning on the date of the [first moneys advanced under
the] loan and continuing for two years after that date. On
sale of the shell building, the political subdivision shall
repay the entire amount of the loan. Subject to the
required repayment in the event of a sale, the principal
balance of the loan remaining at the end of the two—year
amortization period shall be amortized over a period not
exceeding 25 years in accordance with an amortization
schedule approved by the Secretary. [Moneys loaned for
costs of finishing the shell building, after closing the
initial loan, shall be amortized together with or within the
period for amortization of the initial loan.] The borrowing
subdivision shall give to the Secretary at least 30 days
advance notice and obtain his written approval of any sale
or lease. THE LOAN AGREEMENT MAY CONTAIN REGULATORY AND
SECURITY PROVISIONS.

(e)    The loan agreement shall be recorded among the
land records of the political subdivision in which the
project is located and shall constitute a [first] lien on
the land and the improvements.

441B.

(b) On approval of a loan under this section, the
Secretary and the borrowing subdivision shall enter into a
loan agreement requiring repayment within seven years at an
interest rate calculated pursuant to § 440(c) [(3)] (2) (III)
of this [subheading] SUBTITLE, and in accordance with an
amortization schedule approved by the Secretary. The loan
agreement may require repayment from the proceeds of any
loan made under §§ 440 or 441 of this [subheading] SUBTITLE.

443.

[Notwithstanding any other provision of this subtitle,
the Secretary may waive the requirement that a loan
agreement executed pursuant to this subtitle constitute a
first lien on the land and improvements if he finds that (i)
subordination of the State's interest is necessary to
development or completion of the project, and (ii) such
subordination will not jeopardize the probability of
repayment to the State or have an unduly adverse effect on
the State's security for repayment. ] A LOAN UNDER THIS
SUBTITLE IS A GENERAL OBLIGATION OF THE BORROWING COUNTY, TO
THE REPAYMENT OF WHICH THE COUNTY'S FULL FAITH AND C1EDIT
ARE PLEDGED OR AN OBLIGATION OF BALTIMORE CITY REPAYABLE
FROM ASSETS AND REVENUES AS PROVIDED IN THE LOAN AGREEMENT.
The Secretary [may], upon the sale of any part of the land
secured by a loan agreement and prepayment of principal as
provided in this subtitle, SHALL execute a partial release
of such land from the lien of the loan agreement.