HARRY HUGHES, Governor

2609

Funds. Any investment earnings of the fund shall be paid
into the State general treasury.

(d)  The State may appropriate to the fund, in the
State budget, all or part of the moneys received as
repayments of principal or interest on all loans. The
appropriation may be increased by budget amendment. The
amount of repayments so appropriated for the purpose of
making loans may not exceed $12,000,000 annually. The State
may not appropriate repayments of principal and interest to
the program to the extent that loans expected to be made
with moneys appropriated would cause the total principal
amount of loans outstanding to exceed $100,000,000.

(E)  IF THERE IS NO APPROPRIATION TO THE FUND IN THE
STATE BUDGET OF PART OR ALL OF THE MONEYS RECEIVED AS
REPAYMENTS OF PRINCIPAL OR INTEREST ON THE LOANS, THE MONEYS
NOT APPROPRIATED SHALL BE:

(1)  CREDITED TO THE ANNUITY BOND FUND TO BE USED
TO PAY THE PRINCIPAL OF OR INTEREST ON MONEYS BORROWED BY
THE STATE AND APPROPRIATED TO THE PROGRAM; OR

(2)  PAID INTO THE STATE GENERAL TREASURY TO
REIMBURSE THE STATE FOR ADMINISTRATIVE AND OTHER COSTS OF
THE PROGRAM PREVIOUSLY PAID FROM THE FUND.

(F)  PREPAYMENTS OF PRINCIPAL OF A LOAN MAY BE USED TO
MAKE ADDITIONAL LOANS UNDER THE PROGRAM. ANY MONEYS NOT SO
USED WITHIN 12 MONTHS FROM THE DATE OF THE RECEIPT OF SUCH
PREPAYMENT SHALL BE APPLIED AS PROVIDED IN SUBSECTION (E).

[e]  (F)(G) The Department shall report to the
Governor and the General Assembly before January 1 of each
year the financial status of the program and a summary of
its operations for the preceding fiscal year.

13-315.

(b) (1) Subject to paragraph (2) of this subsection,
AS LONG AS IT COMPLIES WITH ANY APPLICABLE FEDERAL TREASURY
REGULATIONS GOVERNING THE BORROWING OF MONEYS BY THE STATE,
A loan shall permit:

(i) The interest rate to be increased:

1.  Variably; or

2.  To a stated rate; or

(ii) Acceleration of maturity.

(2) Except as provided in paragraph (3) of this
subsection, the interest rate of a loan may not be increased
and the maturity may not be accelerated unless:

(i) 5 years have passed from the date of
the loan; or