WILLIAM DONALD SCHAEFER, Governor                   Ch. 658

(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]

(3)  The loan is to be used [primarily for working
capital] to perform a contract for a project that a federal,
State, or local government finances; AND

(4)  THE LOAN IS TO BE USED FOR:

(I)  WORKING CAPITAL; OR

(II)  EQUIPMENT NEEDED TO PERFORM THE CONTRACT,
THE COST OF WHICH CAN BE REPAID FROM CONTRACT PROCEEDS, IF THE
AUTHORITY HAS ENTERED INTO AN AGREEMENT WITH THE APPLICANT
NECESSARY TO SECURE THE LOAN.

(b)  A loan that the Authority makes shall mature not later
than the term of the government contract, unless the Authority
finds that a longer term better carries out the purposes of this
subtitle.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1987.

Approved June 2, 1987.

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