3818

LAWS OF MARYLAND

Ch. 734

(A) (1) A GUARANTEE OF A LONG-TERM LOAN MADE BY THE
FINANCIAL INSTITUTION TO A QUALIFIED APPLICANT; AND

(2) AN INTEREST SUBSIDY.

(B) IN PROVIDING FINANCIAL ASSISTANCE, THE AUTHORITY
SHALL RECOGNIZE THE NEED TO SERVE APPLICANTS FROM ALL
POLITICAL SUBDIVISIONS OF THE STATE.

13-233.2.

(A)  THE AUTHORITY MAY UTILIZE THE SPECIAL FUND TO
GUARANTEE UP TO 99 80 PERCENT OF THE PRINCIPAL AND INTEREST
OF A LONG-TERM LOAN MADE BY A FINANCIAL INSTITUTION TO AN
APPLICANT ONLY IF:

(1)  THE APPLICANT MEETS THE REQUIREMENTS OF §
13-231 AND HAS NOT VIOLATED ANY PROVISIONS OF § 13-233.4 OF
THIS SUBTITLE;

(2)  THE LOAN AMOUNT IS NOT LESS THAN $5,000 AND
NOT MORE THAN $500,000;

(3)  THE LOAN IS TO BE USED BY THE APPLICANT FOR
WORKING CAPITAL OR THE ACQUISITION OF MACHINERY OR
EQUIPMENT;

(4)  THE LOAN SHALL MATURE IN NOT LESS THAN 1
YEAR AND NOT MORE THAN 10 YEARS FROM THE DATE OF CLOSING OF
THE LOAN; AND

(5)  THE RATE OF INTEREST ON THE LOAN IS NO
GREATER THAN THE RATE OF INTEREST DETERMINED BY THE
AUTHORITY TO BE THE MONTHLY WEIGHTED AVERAGE OF THE PRIME
LENDING RATE, PLUS 1 PERCENT, PREVAILING FROM TIME TO TIME
IN THE CITY OF BALTIMORE ON UNSECURED COMMERCIAL LOANS.

(B)  A GUARANTEE SHALL CONTAIN SUCH TERMS AND
CONDITIONS AS THE AUTHORITY MAY DEEM APPROPRIATE.

(C) (1) THE AUTHORITY MAY NOT APPROVE A GUARANTEE
PURSUANT TO THIS SECTION UNLESS THE AUTHORITY CONSIDERS THE
ECONOMIC IMPACT OF THE LOAN SOUGHT TO BE GUARANTEED TO BE
SUBSTANTIAL.

(2) TO DETERMINE THE ECONOMIC IMPACT OF A
PROJECT, THE AUTHORITY MAY CONSIDER:

(I)  THE AMOUNT OF THE GUARANTEE
OBLIGATION;

(II)  THE TERMS OF THE LOAN TO BE
GUARANTEED;