Ch. 311                                    LAWS OF MARYLAND.

12-404(a) as the same related to the project as well as a
complete breakdown of the anticipated cost of the project.

(c)  The Secretary, upon receipt of an application and after
such investigation as he deems advisable, may approve a loan of
up to fifty percent of the anticipated project cost, as
determined by the Secretary, but not exceeding $1,500,000 for any
one project. In judging whether or not to approve a loan and the
amount of a loan, the Secretary shall consider and determine in
addition to those factors set forth in § [12-404(b)] 5-404(B) of
this subtitle, (i) whether the subdivision has available and
committed toward the project sufficient funds to finance its
share of the anticipated project costs; provided, however, that
the Secretary may consider in lieu of funds on hand official and
noncontingent commitments of funds from federal agencies,
financial institutions, or other reliable sources; and provided
further that the Secretary may grant a conditional approval for a
period not exceeding two years in any case where application for
all or part of the balance of the required funds has been made to
a federal agency, financial institution, or other reliable source
and additional time is required for affirmative action on the
application, and (ii) the subdivision has presented evidence
demonstrating its ability to carry out and complete the project
as planned.

(d)  (1) Upon approval of a loan, the Secretary shall enter
into a loan agreement with the borrowing subdivision.

(2) Each loan agreement shall include:

(i) A provision for payments of interest only
for 2 years from the date of the loan;

(ii) A provision for payments of principal     and

interest, in accordance with an amortization schedule that   the

Secretary approves, for not more than a 30-year period from     the
end of the 2-year period; and

(iii) The provisions for interest rate, notice
and approval of conveyances of land, and prepayment of the loan,
as specified; in § [12-404] 5-404(c)(2)(iii) through (v) of this
subtitle.

(3) The loan agreement may contain regulatory and
security provisions.

(e)  The loan agreement shall be recorded among the land
records of the subdivision in which the land is located and shall
constitute a lien upon the land and improvements.

(f)  The Secretary may, upon application and after;
investigation, approve a loan not exceeding $15,000 and on an

equal matching basis with funds of the borrowing subdivision, for

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