WILLIAM DONALD SCHAEFER, Governor                   Ch. 403

Authority finds that a longer term better carries out the
purposes of this subtitle.

13-229.

(a)  The Authority may utilize the Contract Financing Fund
to guarantee a person's proposed equity investment in the
applicant only if:

(1)  The applicant meets the requirements of this
subtitle;

(2)  The amount of the equity investment to be
guaranteed does not exceed the lesser of:

(i) 10 percent of the person's equity
investment in the applicant; or

(ii) $250,000; and

(3)  The equity investment to be guaranteed is to be
used primarily for working capital 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.

(b)  The Authority may not guarantee the equity investment
of a person who:

(1)  Previously held an equity investment in the
applicant;

(2)  Previously participated in the management of the
applicant; or

(3)  In any other manner is related to:

(i) The applicant; or

(ii) Any of its current stockholders, officers,
or other management personnel.

13-230.

(a) The Authority may utilize the Contract Financing Fund
to lend money to an applicant only if:

(1)  The applicant meets the requirements of this
subtitle;

(2)  The loan does not exceed $250,000; and

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