WILLIAM DONALD SCHAEFER, Governor Ch. 311

the purpose of financing planning or engineering study costs of
or for a project situate or to be situate on land owned by or
under option to the borrowing subdivision or owned by the federal
government upon reasonable assurance that the site will be made
available to the subdivision. Upon approval of any such loan,
the Secretary and the subdivision shall enter into a loan
agreement requiring repayment within five years at an interest
rate calculated pursuant to § [12-404] 5-404(c)(2)(iii) of this
subtitle and in accordance with an amortization schedule approved
by the Secretary.

[12-406.] 5-406.

(a)  (1) In this section, the following words have the
meanings indicated.

(2)  "Project costs" may include planning and
engineering studies, land acquisition, site preparation, and all
construction costs.

(3)  "Shell building" means a basic structure of
flexible design or a rehabilitated building, erected on land
owned or controlled by the political subdivision, for eventual
sale or lease to a purchaser or tenant requiring facilities for
manufacturing, assembling, fabricating, processing, warehousing,
research and development, or office use.

(b)  Any political subdivision may apply to. the Secretary
for a loan to finance project costs of a shell building project.
The application shall describe the project in the manner and
detail required by the Secretary and shall include the
information set forth in § [12-404(a)] 5-404(A) of this
subheading as it relates to the shell building project, and a
complete breakdown of the anticipated cost of the project.

(c)  In determining whether or not to approve a loan and the
amount of the loan, the Secretary shall consider those factors
set forth in § [12-404(b)] 5-404(B) as they relate to the shell
building project. After the investigation he considers
necessary, the Secretary may approve a loan of all or any part of
the project costs, not to exceed $1,500,000.

(d)  On approval of a loan, the Secretary shall enter into a
loan agreement with the borrowing political subdivision providing
for payment of interest only, at a rate determined by the
Secretary in accordance with § [12-404] 5-404(c)(2)(iii) of this
subtitle, beginning on the date of the loan and continuing for
two years after that date. On sale of the shell building, the
political subdivision shall repay the entire amount of the loan.
Subject to the required repayment in the event of a sale, the
principal balance of the loan remaining at the end of the
two-year amortization period shall be amortized over a period not
exceeding 25 years in accordance with an amortization schedule

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