Ch. 403                                    LAWS OF MARYLAND

CHAPTER 4 03

(Senate Bill 861)

AN ACT concerning

State-Operated Financial Programs - Contract Financing
Fund Financial Assistance

FOR the purpose of providing that the performance of a contract
for a certain project financed by a State regulated utility
is a permissible use, by a certain applicant, for which the
Maryland Small Business Development Financing Authority may
utilize the Contract Financing Fund' to guarantee a loan made
to the applicant or a person's proposed equity investment in
the applicant, or to loan money to the applicant; making
certain stylistic changes; and generally relating to the
Contract Financing Fund financial assistance program.

BY. repealing and reenacting, with amendments,

Article - Financial Institutions
Section 13-228, 13-229, and 13-230
Annotated Code of Maryland
(1986 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

13-228.

(a)  The Authority may utilize the Contract Financing Fund
to guarantee a loan made to an applicant only if:

(1)  The applicant meets the qualifications required
by this subtitle;

(2)  The loan is to be used to perform a contract for
a project [that a federal, State, or local government finances]
FINANCED BY THE FEDERAL OR STATE GOVERNMENT, A LOCAL GOVERNMENT,
OR A UTILITY REGULATED BY THE PUBLIC SERVICE COMMISSION;

(3)  The part of the loan to be guaranteed does not
exceed $250,000; and

(4)  The loan to be guaranteed is to be used primarily
for working capital.

(b)  A guaranty that the Authority makes shall be limited to
not more than the term of the government contract, unless the

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