774                                     LAWS OF MARYLAND                               Ch. 49

266T.

(a) The Authority, upon application of the proposed
mortgagors, may insure part or all of the mortgage payments
required by a first mortgage on any industrial project, upon
such terms and conditions as the Authority may prescribe, if
the aggregate amount of the insured portion of the principal
obligations of all mortgages outstanding at any one time
does not exceed an amount equal to five times the balance in
the industrial project mortgage insurance fund.

(b)  To be eligible for insurance under this subtitle a
mortgage shall:

(1)  Be made by a mortgagor as defined herein and
held by a mortgagee approved by the Authority.

(2)  Involve a principal obligation, including
initial service charges and appraisal, inspection and other
fees approved by the Authority, not more than 100 percent of
the cost of the project. The portion of the principal
obligation of the mortgage insured by the Authority may not
exceed $5,000,000 for any one project and may not exceed 90
percent of the cost of the project (as defined in § 266-0)
as to real property, nor 70 percent of the cost of the
project (as defined in § 266-0) as to machinery and
equipment.

(3)  Have a maturity satisfactory to the
Authority but in no case later than 25 years from the date
of the insurance except in the case of machinery and
equipment, for which the maturity is to be no more than 15
years from the date of the insurance but in no case beyond
the normal useful life of the machinery and equipment.

(4)  Contain repayment provisions satisfactory to
the Authority requiring payments by the mortgagor which may
include principal and interest payments, cost of local
property taxes and assessments or payments in lieu thereof,
landlease rentals if any, hazard insurance on the property,
such mortgage insurance premiums as are required under §
266U, and such depreciation payments as may be necessary to
maintain the integrity of the project until principal has
been completely amortized, all as the Authority from time to
time prescribes or approves.

(5)  Be in such form and contain such terms and
provisions with respect to property insurance, repairs,
alterations, payment of taxes and assessments or payments in
lieu thereof, default reserves, delinquency charges, default
remedies, anticipation of maturity, additional and secondary
liens, and other matters as the Authority may prescribe.

(6)  Not have a maturity later than the initial
term of the lease of the property on which the mortgage is
granted; provided, however, that this shall in no way
preclude the prepayment of any mortgage so insured.