HARRY HUGHES, Governor

701

The introductory clause of item (2) of this
section " {i}f the applicant is a corporation" is
new language substituted for the reference to
"investment in an eligible corporation", which
appears to be a limited reference to an "eligible
applicant", as that term presently is defined,
that also is a corporation. Although, as to
other types of assistance, business enterprises
— other than corporations — are eligible, the
Department of Economic and Community Development
indicates that this provision will extend only to
corporations.

The introductory clause of item (3) of this
section " {i}f the applicant is unable to obtain
money from any other source" is new language
substituted for the present provision "{T}he
Authority may grant a direct loan only as a last
resort,...", to clarify that a guarantee of a
loan or of an equity investment is the preferred
form of financial assistance.

13-228. LIMITATIONS ON POWER TO GUARANTEE LOANS.

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;

(3)   THE PART OF THE LOAN TO BE GUARANTEED DOES
NOT EXCEED $150,000;

(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.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 41, §
266HH-5(2), except for the second sentence of
that paragraph, and Art. 41, § 266HH-5(4) — as
that paragraph relates to guarantees of loans —
and the first clause of (5).

Item (1) of this section is new language
substituted for the present references to
"eligible applicant{s}". The present definition
of "eligible applicant" contains numerous
substantive requirements, which, in the revision
of this subtitle, have been set forth as
requirements in § 13—231 of this subtitle.