3648                                                       VETOES

(5) AN INCREASED RATE OF INTEREST OR ACCELERATED
PAYMENT OF PRINCIPAL AND INTEREST IF THE GROUP HOME BORROWER NO
LONGER QUALIFIES FOR THE LOAN.

(b)  (1) Subject to paragraph (2) of this subsection, as
long as it complies with any applicable federal treasury
regulations governing the borrowing of moneys by the State, a
loan shall permit:

(i) The interest rate to be increased:

1.  Variably; or

2.  To a stated rate; or
(ii) Acceleration of maturity.

(2)  Except as provided in paragraph (3) of this
subsection, the interest rate of a loan may not be increased and
the maturity may not be accelerated unless:

(i) 5 years have passed from the date of the
loan; [or]

(ii) The financial circumstances of the
OWNER-OCCUPANT borrower have changed and the borrower no longer
would qualify as an original borrower under the program; OR

(III) THE GROUP HOME SPONSOR NO LONGER PROVIDES
A GROUP HOME.

(3)  If a borrower violates §13-317 of this subtitle,
the Department immediately may accelerate the maturity.

(c)  To determine whether to increase the interest rate or
accelerate maturity, the Department, on a continuing basis, may
require any information from or relating to the borrower,
including certified copies of State income tax returns.

(D)  IN THE CASE OF LOANS TO GROUP HOME SPONSORS WHICH ARE
NONPROFIT ORGANIZATIONS, PAYMENT OF PRINCIPAL AND INTEREST MAY BE
DEFERRED UNTIL:

(1)  A STATED DATE, WHICH MAY BE THE MATURITY DATE;

(2)  THE DATE OF ANY SALE OR OTHER TRANSFER OF THE
GROUP HOME OR A SUBSTANTIAL CONTROLLING INTEREST IN THE HOME; OR

(3)  DISCONTINUANCE OF USE AS A GROUP HOME.

(E) THE DEPARTMENT SHALL ADOPT REGULATIONS THAT PLACE
LIMITS ON THE RETURN ON EQUITY ALLOWED TO A GROUP HOME SPONSOR
AND THAT PROVIDE PROCEDURES FOR THE DEPARTMENT TO ENTER INTO AN

EQUITY PARTICIPATION AGREEMENT WITH A GROUP HOME SPONSOR.