WILLIAM DONALD SCHAEFER, Governor

Ch. 311

a loan to finance any portion of the project costs of an access
road, a utility line, or both.

(c)  (1) To apply for assistance, a political subdivision
shall submit an application to the Department.

(2)  In the manner and detail required by the
Secretary, the application shall:

(i) Explain the need for the project for which
assistance is requested; and

(ii) State the amount and type of assistance
requested for the project.

(3)  The application also shall include a
certification by the political subdivision that the project for
which assistance is requested would serve a manufacturing,
processing, or other industrial establishment that has been
constructed or will be constructed.

(d)  After receiving an application, the Secretary may
conduct any investigation and consultation he considers necessary
to determine the merits of the application.

(e)  (1) Subject to the limitations set by this subsection,
the Secretary may approve a loan to cover all or any portion of
the anticipated project cost.

(2) A loan made under this section may not exceed
$500,000.

(f)  (1) Before making a loan that has been approved by the
Secretary under this section, the Department shall enter into a
loan agreement with the borrowing political subdivision.

(2) Each loan agreement shall include:

(i) A provision for payments of interest only
for a 2-year period 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 25-year period from the
end of the 2-year period;

(iii) A provision for an interest rate 1. that
equals the net interest costs of the most recent sale of State
general obligation bonds before the date of the loan plus 1/8 of
1 percent for a loan made from sources other than State general
obligation bond proceeds or 2. that equals the net interest costs
of the sale of State general obligation bonds out of which the

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