HARRY HUGHES, Governor

2201

misdemeanor and upon conviction shall be fined not more than
$5,000 or imprisoned for not more than two years, or both. Every
borrower who knowingly makes or causes to be made such a false
statement or report shall, at the option of the Department, and
without regard to the commencement or status of criminal
prosecution, be subject to immediate acceleration of the loan for
which he is liable. The criminal penalties and acceleration
provided by this section shall apply to any material misstatement
of fact, whether in the nature of an understatement or
overstatement of financial condition, or any other fact material
to the Department's actions.

[(h)] (M) (1) The program shall operate as a continuing,
nonlapsing, special fund, that consists of moneys appropriated by
the State to the program.

(2)  The Department shall use the fund to make loans
and to pay expenses of the program including reserves for
anticipated future losses directly related to the program, as
provided in the- annual budget of the State or other act
appropriating moneys.

(3)  The State Treasurer shall hold and the State
Comptroller shall account for the fund. The fund shall be
invested and reinvested in the same manner as other State funds.
Any investment earnings of the fund shall be paid into the
General Fund of the State.

(4)  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 made by the program at any
time. 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 the
moneys appropriated would cause the total principal amount of
loans outstanding to exceed $100,000,000.

(5)  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:

(i) 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

(ii) Paid into the General Fund of the State,
to reimburse the State for administrative and other costs of the
program previously paid from the fund.

(6)  Prepayments of principal of a loan may be used to
make additional loans under the program. Any moneys not so used