706

LAWS OF MARYLAND

Ch. 33

13-233. TERMS OF FINANCIAL ASSISTANCE.

(A)   TERMS OF GUARANTEES.

THE AUTHORITY MAY SET THE TERMS AND CONDITIONS FOR
GUARANTEES OF LOANS.

(B)   LOANS.

(1)   IF THE AUTHORITY DECIDES TO LEND MONEY TO AN
APPLICANT, THE AUTHORITY SHALL PREPARE A LOAN AGREEMENT.

(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;

(II)   A PAYMENT SCHEDULE THAT PROVIDES
MONEY TO THE APPLICANT IN THE AMOUNTS AND AT THE TIMES THAT
THE APPLICANT NEEDS THE MONEY TO PERFORM THE GOVERNMENT
CONTRACT;

(III)   A REQUIREMENT THAT, BEFORE EACH
ADVANCE OF MONEY IS RELEASED TO THE APPLICANT, THE APPLICANT
AND THE AUTHORITY COSIGN THE REQUEST FOR THE MONEY; AND

(IV)   PROVISIONS FOR REPAYMENT OF THE LOAN.

(3)   THE LOAN AGREEMENT MAY INCLUDE ANY OTHER
PROVISION THAT THE AUTHORITY DETERMINES IS NECESSARY TO
SECURE THE LOAN, INCLUDING, IF ALLOWABLE, AN ASSIGNMENT OF
OR A LIEN ON PAYMENT UNDER THE GOVERNMENT CONTRACT.

REVISOR'S NOTE: This section is new language derived
without substantive change from the third
sentence of Art. 41, § 266HH-5(1) and the second
sentence of (2) and from Art. 41, § 266HH-8(b).

Subsection (b)(2) (i) and (iii) of this section
are revised to clarify the present references in
Art. 41, § 266HH-8 to a "draw from the contract"
and payments being "consigned". The revision
indicates that the payments to the applicant are
made at the time the applicant performs the
government contract and cannot be released unless
the applicant and Authority cosign for them.

13-234. VIOLATIONS OF LOAN AGREEMENT; NONCOMPLIANCE WITH
SUBTITLE.

IF AN APPLICANT VIOLATES ANY PROVISION OF THE    LOAN

AGREEMENT OR CEASES TO MEET THE REQUIREMENTS OF THIS

SUBTITLE, ON REASONABLE NOTICE TO THE APPLICANT, THE
AUTHORITY MAY:

(1) WITHHOLD FROM THE APPLICANT FURTHER LOAN