3478

LAWS OF MARYLAND

Ch. 745

1. GENERAL OBLIGATION BOND ISSUE OUT OF
WHICH THE LOAN IS MADE WITH RESPECT TO A LOAN MADE FROM THE
PROCEEDS OF A GENERAL OBLIGATION BOND ISSUE; OR

2. MOST RECENT GENERAL OBLIGATION BOND
ISSUE OF THE CITY PRECEDING APPROVAL OF THE APPLICATION FOR THE
LOAN WITH RESPECT TO A LOAN MADE FROM SOURCES OTHER THAN GENERAL
OBLIGATION BOND PROCEEDS; AND

(II) A LOAN SHALL MATURE AT A DATE NO LATER
THAN 10 YEARS FOLLOWING THE DATE ON WHICH THE FIRST FUNDS ARE
ADVANCED TO THE ENTERPRISE.

(D)(C) THE CITY MAY ESTABLISH FEES IN AN AMOUNT CALCULATED
TO COVER THE ADMINISTRATIVE EXPENSE OF MAKING THE EQUITY
INVESTMENT OR THE LOAN.

(E)(D) THE CITY MAY MAKE AN EQUITY INVESTMENT IN OR A LOAN
TO AN ENTERPRISE PURSUANT TO THIS SECTION OR MAY GUARANTEE A LOAN
MADE BY A PRIVATE LENDER TO AN ENTERPRISE OR PROCURE A THIRD
PARTY TO GUARANTEE A LOAN TO AN ENTERPRISE PURSUANT TO SECTION
27-7 IN ANY COMBINATION WHICH THE CITY, IN ITS SOLE AND ABSOLUTE
DISCRETION, DEEMS APPROPRIATE.

27.7.

(A) TO IMPLEMENT THE PROGRAM, THE CITY MAY GUARANTEE A LOAN
MADE BY A PRIVATE LENDER TO AN ENTERPRISE, PROVIDED THAT THE CITY
IN ITS SOLE AND ABSOLUTE DISCRETION DETERMINES THAT THE LOAN TO
BE GUARANTEED WILL:

(1) PROVIDE WORKING CAPITAL TO THE ENTERPRISE OR BE
USED BY THE ENTERPRISE TO PURCHASE MACHINERY OR EQUIPMENT; AND

(2) ASSIST IN THE ESTABLISHMENT OR GROWTH OF AN
ENTERPRISE AND LIKELY RESULT IN THE ESTABLISHMENT OR EXPANSION OF
MANUFACTURING, OFFICE, RESEARCH OR RELATED ACTIVITIES IN THE
CITY.

(B) THE CITY IN ITS SOLE AND ABSOLUTE DISCRETION MAY
PRESCRIBE THE TERMS UPON WHICH A LOAN IS TO BE GUARANTEED AND MAY
ESTABLISH PREMIUMS AND FEES IN AN AMOUNT CALCULATED TO COVER THE
ADMINISTRATIVE EXPENSE OF GUARANTEEING THE LOAN AND THE RISK OF
LOSS ARISING FROM A LOAN DEFAULT, PROVIDED THAT THE LOAN THAT IS
TO BE GUARANTEED SHALL BE MADE TO AND FOR THE BENEFIT OF AN
ENTERPRISE.

(C) IN LIEU OF DIRECTLY GUARANTEEING A LOAN, THE CITY IN
ITS SOLE AND ABSOLUTE DISCRETION MAY PROCURE A THIRD PARTY TO
GUARANTEE A LOAN TO AN ENTERPRISE AND MAY PAY THE FEES THEREFOR
ON BEHALF OF THE ENTERPRISE, PROVIDED THAT THE CONDITIONS AND
LIMITATIONS SET FORTH IN PARAGRAPHS (A) AND (B) OF THIS SECTION
ARE FULLY SATISFIED.