HARRY HUGHES, Governor

2103

(3)  The part of the loan to be guaranteed does
not exceed $150,000; AND

(4)  The loan to be guaranteed is to be used
primarily for working capital[; and

(5)  The loan matures not later than the term of
the government contract].

(B) A LOAN THAT THE AUTHORITY GUARANTEES SHALL MATURE
NOT LATER A GUARANTY THAT THE AUTHORITY MAKES SHALL BE
LIMITED TO NOT MORE THAN THE TERM OF THE GOVERNMENT
CONTRACT, UNLESS THE AUTHORITY FINDS THAT A LONGER TERM
BETTER CARRIES OUT THE PURPOSES OF THIS SUBTITLE.

13-230.

(A)  The authority may lend money to an applicant only
if;

(1)  The applicant meets the requirements of this
subtitle;

(2)  The loan does not exceed $150,000; AND

(3)  The loan is to be used primarily for working
capital[; and

(4)  The loan matures not later than the term of
the government contract].

(B)  A LOAN THAT THE AUTHORITY MAKES SHALL MATURE NOT
LATER THAN THE TERM OF THE GOVERNMENT CONTRACT, UNLESS THE
AUTHORITY FINDS THAT A LONGER TERM BETTER CARRIES OUT THE
PURPOSES OF THIS SUBTITLE.

13-231.

(d) In addition to the other requirements of this
section, an applicant for a guarantee of a loan shall have
applied for and been denied a loan.

13-233.

(b) (2) The loan agreement shall include:

(i) The rate of interest on the loan,
which shall equal the market rate for a conventional loan of
comparable risk UNLESS THE AUTHORITY FINDS THAT A LOWER RATE
BETTER CARRIES OUT THE PURPOSES OF THIS SUBTITLE;

SECTION 2 3. AND BE IT FURTHER ENACTED, That Section 1
of this Act shall take effect June 1, 1980.