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ROBERT L. EHRLICH, JR., Governor
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Ch. 396
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Article - State Finance and Procurement
6-211.
(A) (1) THERE IS A LINKED DEPOSIT PROGRAM IN THE TREASURER'S OFFICE
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.
(2) THE PURPOSE OF THE LINKED DEPOSIT PROGRAM IS TO STIMULATE
OPPORTUNITIES FOR MINORITY BUSINESS ENTERPRISES TO HAVE ACCESS TO
CREDIT BY ASSISTING THESE BUSINESSES IN OBTAINING LOANS AT LOWER THAN
MARKET INTEREST RATES.
(B) A LOAN QUALIFIES UNDER THE LINKED DEPOSIT PROGRAM IF THE LOAN:
(1) SATISFIES THE FINANCIAL INSTITUTION'S LENDING CRITERIA;
(2) HAS A TERM NOT EXCEEDING 10 YEARS;
(3) IS MADE TO A MINORITY BUSINESS ENTERPRISE CERTIFIED UNDER
TITLE 14, SUBTITLE 3 OF THIS ARTICLE;
(4) HAS AN INTEREST RATE THAT IS 2 PERCENTAGE POINTS BELOW THE
INTEREST RATE THE FINANCIAL INSTITUTION WOULD CHARGE FOR A LOAN FOR A
SIMILAR PURPOSE AND A SIMILAR TERM; AND
(5) HAS POINTS OR FEES CHARGED AT LOAN CLOSING NOT EXCEEDING 1
PERCENT OF THE LOAN AMOUNT.
(C) THE TREASURER THE DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT SHALL:
(1) CONFIRM WITH THE CERTIFICATION AGENCY DESIGNATED UNDER
TITLE 14, SUBTITLE 3 OF THIS ARTICLE THAT EACH LOAN UNDER THE LINKED
DEPOSIT PROGRAM IS MADE TO A BUSINESS THAT IS CERTIFIED AS A MINORITY
BUSINESS ENTERPRISE; AND
(2) ESTABLISH PROCEDURES FOR NOTIFICATION BY THE
CERTIFICATION AGENCY DESIGNATED UNDER TITLE 14, SUBTITLE 3 OF THIS
ARTICLE IF A BUSINESS THAT HAS AN OUTSTANDING BALANCE OF A LOAN UNDER
THE LINKED DEPOSIT PROGRAM IS NO LONGER CERTIFIED;
(3) RECEIVE ELECTRONIC LOAN APPLICATIONS FROM MINORITY
BUSINESS ENTERPRISES:
(4) FORWARD LOAN APPLICATIONS TO LENDERS;
(5) REQUIRE MINORITY BUSINESS ENTERPRISES TO NOTTFY THE
DEPARTMENT CONCERNING FINAL LOAN DISPOSITION; AND
(6) REPORT ANNUALLY TO THE GOVERNOR, THE TREASURER AND, IN
ACCORDANCE WITH § 2-1246 OF THE STATE GOVERNMENT ARTICLE. THE GENERAL
ASSEMBLY ON OVERALL PERFORMANCE OF THE LINKED DEPOSIT PROGRAM.
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- 2141 -
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