1520

LAWS OF MARYLAND

Ch. 488

(III) THE INTEREST COST OF MONEYS USED TO
FUND THE PROGRAM, WHICH MAY BE THE ACTUAL INTEREST COST OF
MONEYS BORROWED BY THE STATE AND APPROPRIATED TO THE
PROGRAM, OR THE IMPUTED INTEREST COST OF GENERAL FUNDS OR
LOAN REPAYMENTS APPROPRIATED TO THE PROGRAM; AND

(2) NOT LESS THAN A RATE THAT IS 5 PERCENTAGE
POINTS BELOW THE PREVAILING RATE ON COMPARABLE LOANS MADE BY
PRIVATE LENDERS AS DETERMINED BY THE DEPARTMENT, UNLESS THE
DEPARTMENT ALSO DETERMINES THAT THE PREVAILING RATE IS SO
HIGH THAT THIS CONDITION IS NOT COMPATIBLE WITH BOTH PRUDENT
LOAN UNDERWRITING STANDARDS AND WITH THE INCOME LIMITS
ESTABLISHED UNDER § 13-306(D) OF THIS SUBTITLE.

13-308.

(A)  THE PROGRAM SHALL OPERATE AS A CONTINUING,
NONLAPSING, SPECIAL FUND, THAT CONSISTS OF MONEYS
APPROPRIATED BY THE STATE TO THE PROGRAM.

(B)  THE DEPARTMENT SHALL USE THE FUND TO MAKE LOANS
AND TO PAY EXPENSES OF THE PROGRAM, AS PROVIDED IN THE
ANNUAL BUDGET OF THE STATE OR OTHER ACT APPROPRIATING
MONEYS.

(C)  THE STATE TREASURER SHALL HOLD AND THE STATE
COMPTROLLER SHALL ACCOUNT FOR THE FUND. THE FUND SHALL BE
INVESTED AND REINVESTED IN THE SAME MANNER AS OTHER STATE
FUNDS. ANY INVESTMENT EARNINGS OF THE FUND SHALL BE PAID
INTO THE STATE GENERAL TREASURY.

(D)  THE STATE MAY APPROPRIATE TO THE FUND, IN THE
STATE BUDGET, ALL OR PART OF THE MONEYS RECEIVED AS
REPAYMENTS OF PRINCIPAL OR INTEREST ON ALL LOANS. THE
APPROPRIATION MAY BE INCREASED BY BUDGET AMENDMENT. THE
AMOUNT OF REPAYMENTS SO APPROPRIATED FOR THE PURPOSE OF
MAKING LOANS MAY NOT EXCEED $12,000,000 ANNUALLY. THE STATE
MAY NOT APPROPRIATE REPAYMENTS OF PRINCIPAL AND INTEREST TO
THE PROGRAM TO THE EXTENT THAT LOANS EXPECTED TO BE MADE
WITH MONEYS APPROPRIATED WOULD CAUSE THE TOTAL PRINCIPAL
AMOUNT OF LOANS OUTSTANDING TO EXCEED $100,000,000.

(E)  THE DEPARTMENT SHALL REPORT TO THE GOVERNOR AND
THE GENERAL ASSEMBLY BEFORE JANUARY 1 OF EACH YEAR THE
FINANCIAL STATUS OF THE PROGRAM AND A SUMMARY OF ITS
OPERATIONS FOR THE PRECEDING FISCAL YEAR.

13-311.

(b) Except as provided in subsection (c) of this
section to qualify for a loan, an applicant:

(5) Shall be within the [income] limits ON
ADJUSTED ANNUAL INCOME set by the Department.