2102

LAWS OF MARYLAND

Ch. 587

(2)  The Authority may [guaranty] GUARANTEE a
loan made to an eligible applicant. The terms and
conditions of a loan guaranty are within the sole discretion
of the Authority. The Authority may not [guaranty]
GUARANTEE more than $150,000 of a loan. The duration of the
[loan guaranteed may not exceed] GUARANTY SHALL BE LIMITED
TO the term of the contract WHERE FEASIBLE, BUT THE
AUTHORITY MAY MAKE A LONGER-TERM GUARANTY IF, IN ITS
JUDGMENT, A LONGER-TERM GUARANTY WILL BETTER CARRY OUT THE
PURPOSES OF THIS SUBHEADING.

(3)  (i) The Authority may [guaranty] GUARANTEE
no more than 10 percent of a person's equity investment in
an eligible corporation.

(ii) The Authority may not [guaranty]
GUARANTEE a person's equity investment if that person:

(A)  Previously held an equity
investment in the corporation;

(B)  Previously participated in the
management of the corporation; or

(C)  In any other manner is related
to the enterprise, its current shareholders, officers, or
other management personnel.

(iii) The Authority may not [guaranty]
GUARANTEE more than $150,000 of a person's equity investment
in an eligible corporation.

(4)  The Authority shall grant loans or
guaranties primarily for funds used as working capital.

(5)  The Authority may only [guaranty] GUARANTEE
a loan to be used for projects financed by federal, State,
or local government, where the [individual] APPLICANT has
applied for such financing but has been rejected.

SECTION 2. AND BE IT FURTHER ENACTED, That section(s)
of the Annotated Code of Maryland (as enacted by Chapter 33
of the Acts of the General Assembly of 1980) be repealed,
amended, or enacted to read as follows;

Article - Financial Institutions

13-228.

(A) The authority may guarantee a loan made to an
applicant only if:

(1)  The applicant meets the qualifications
required by this subtitle;

(2)  The loan is to be used to perform a contract
for a project that a federal, State, or local government
finances;