HARRY HUGHES, Governor

2363

462.

(a)  The Department may make a loan or grant to a
political subdivision to cover part of the eligible project
costs of an industrial or commercial redevelopment project.
Proceeds of a loan or grant may be:

(1)  Expended directly by the political
subdivision;

(2)  Loaned or granted by the political
subdivision; or

(3)  Used by the political subdivision to
guarantee loans, to a private entity which has made a firm
commitment to carry out part or all of an industrial or
commercial redevelopment project.

(b)  The Department shall make the loan or grant from
the fund or from other sources of money authorized by law.

(c) (1) A loan or grant may be for up to 90 percent of
the nonfederal and nonprivate portion of the eligible
project cost. However, a loan that, as to principal, is to
be repaid in full may not exceed $3,000,000. Any other
loan or grant may not exceed $2,000,000. The aggregate
cumulative total of grants and outstanding principal balance
of loans, made to or within any one county or Baltimore
City, may not exceed 40% of the aggregate cumulative total
of appropriations and payments to the fund.

(2) As determined by the Secretary, the
principal of a loan:

(i) May be repayable, in whole or in part,
from specified revenues or on a contingency;

(ii) May be noninterest bearing or bear
interest at a rate of not more than 1/4 of 1 percent plus
the interest cost of the most recent State bond issue
preceding approval by the Secretary of the application for
the loan;

(iii) To the extent that it is to be
repaid, may be repayable in accordance with any schedule,
with maturity of up to 15 years; and

(iv) To the extent that it is to be
repaid, is a general obligation secured by the assets and
revenues of Baltimore City AND BALTIMORE COUNTY THE COUNTIES
AND BALTIMORE CITY POLITICAL SUBDIVISIONS that will assure
repayment or by the full faith and credit of any other
borrowing political subdivision.

(d)  The Secretary may adopt regulations governing all
aspects of the program, and may in his discretion facilitate