HARRY HUGHES, Governor

2077

(II) STATE THE AMOUNT AND TYPE OF
ASSISTANCE REQUESTED FOR THE PROJECT.

(3) THE APPLICATION ALSO SHALL INCLUDE A
CERTIFICATION BY THE POLITICAL SUBDIVISION THAT THE PROJECT
FOR WHICH ASSISTANCE IS REQUESTED WOULD SERVE A
MANUFACTURING, PROCESSING, OR OTHER INDUSTRIAL ESTABLISHMENT
THAT HAS BEEN CONSTRUCTED OR WILL BE CONSTRUCTED.

(D)  AFTER RECEIVING AN APPLICATION, THE SECRETARY MAY
CONDUCT ANY INVESTIGATION AND CONSULTATION HE CONSIDERS
NECESSARY TO DETERMINE THE MERITS OF THE APPLICATION.

(E) (1) SUBJECT TO THE LIMITATIONS SET BY THIS
SUBSECTION, THE SECRETARY MAY APPROVE A LOAN, A GRANT, OR
BOTH TO COVER ALL OR ANY PORTION OF THE ANTICIPATED PROJECT
COST.

(2) FOR ANY ONE PROJECT:

(I) A LOAN MADE UNDER THIS SECTION MAY NOT
EXCEED $500,000.

(II) A GRANT MADE UNDER THIS SECTION MAY
NOT EXCEED $150,000 ANY MAY BE MADE ONLY EQUAL
MATCHING BASIS WITH FUNDS OF THE POLITICAL SUBDIVISION.

(III) A LOAN AND GRANT IN THE AGGREGATE
MAY NOT EXCEED $650,000.

(F) (1) BEFORE MAKING A LOAN THAT HAS BEEN APPROVED BY
THE SECRETARY UNDER THIS SECTION, THE DEPARTMENT SHALL ENTER
INTO A LOAN AGREEMENT WITH THE BORROWING POLITICAL
SUBDIVISION.

(2) EACH LOAN AGREEMENT SHALL INCLUDE:

(I)  A PROVISION FOR PAYMENTS OF INTEREST
ONLY FOR A 2-YEAR PERIOD FROM THE DATE OF THE LOAN;

(II)  A PROVISION FOR PAYMENTS OF PRINCIPAL
AND INTEREST, IN ACCORDANCE WITH AN AMORTIZATION SCHEDULE
THAT THE SECRETARY APPROVES, FOR NOT MORE THAN A 25-YEAR
PERIOD FROM THE END OF THE 2-YEAR PERIOD;

(III)  A PROVISION FOR AN INTEREST RATE 1.
THAT EQUALS THE NET INTEREST COSTS OF THE MOST RECENT SALE
OF STATE GENERAL OBLIGATION BONDS BEFORE THE DATE OF THE
LOAN PLUS 1/8 OF 1 PERCENT FOR A LOAN MADE FROM SOURCES
OTHER THAN STATE GENERAL OBLIGATION BOND PROCEEDS OR
2. THAT EQUALS THE NET INTEREST COSTS OF THE SALE OF STATE
GENERAL OBLIGATION BONDS OUT OF WHICH THE LOAN IS MADE PLUS
1/8 OF 1 PERCENT FOR A LOAN MADE FROM PROCEEDS OF A STATE
GENERAL OBLIGATION BOND ISSUE.