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614 LAWS OF MARYLAND Ch. 91
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the loan, including, if allowable, an assignment of or a lien on
payment under the government contract.
Part V. [Special] GUARANTY Fund Financial Assistance
13-233.1.
(A) Subject to the restrictions of this Part V, the
Authority, on application, may provide to a financial institution
the following types of financial assistance from the [special]
GUARANTY fund:
(1) [(i)] A guarantee of a long-term loan made by the
financial institution to a qualified applicant; and
[(ii)] (2) An interest subsidy.
[(2)] (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] GUARANTY fund
to guarantee up to 80 percent of the principal OF and interest
[of] ON 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.
13-233.3.
(a) To apply for financial assistance from the [special]
GUARANTY fund, a financial institution shall submit to the
Authority an application on the form that the Authority requires.
(c) After receipt of an application for financial
assistance from the [special] GUARANTY fund, the Authority may
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