Ch. 248                                          LAWS OF MARYLAND

(D) MORTGAGES OR DEEDS OF TRUST HELD AS SECURITY FOR LOANS
MADE UNDER THIS SUBSECTION WHICH ARE IN DEFAULT MAY BE FORECLOSED
BY THE DEPARTMENT IN THE SAME MANNER AS PROVIDED BY STATUTE AND
THE MARYLAND RULES OF PROCEDURE FOR FORECLOSURES IN PRIVATE
TRANSACTIONS. THE DEPARTMENT IS AUTHORIZED TO TAKE TITLE IN ITS
NAME TO ANY SUCH PROPERTY FORECLOSED AS WELL AS TO CONVEY TITLE
TO SUCH PROPERTY TO BONA FIDE PURCHASERS THEREOF.

(D) (E) THE TERM OF THE DIRECT LOAN MAY NOT EXCEED 20
YEARS.

(E) (F) THE APPLICANT FOR A DIRECT LOAN TO FINANCE A CHILD
CARE CENTER MUST AGREE TO OPERATE THE CHILD CARE CENTER FOR AT
LEAST THE TERM OF THE LOAN AND TO REPAY THE OUTSTANDING LOAN IN
FULL UPON TRANSFER, SALE, OR REFINANCING OF THE FACILITY PRIOR TO
THE END OF THE LOAN TERM; AND THE DIRECT LOAN DOCUMENTS MAY
PROVIDE FOR PENALTIES FOR ANY APPLICANT WHO FAILS TO OPERATE THE
CHILD CARE CENTERS FOR THE ENTIRE TERM OF THE LOAN.

(F) (G) THE DEPARTMENT MAY MAKE DIRECT LOANS TO CHILD CARE

CENTERS WHETHER OR NOT THEY ARE LOCATED IN APPLICANTS' HOMES BUT

A MINIMUM OF A DIRECT LOAN FOR A CHILD CARE FACILITY LOCATED IN A
HOME SHALL BE $15,000.

(G) (H) THE PROCEEDS OF THE DIRECT LOANS MAY BE USED FOR
RENOVATIONS, CONSTRUCTION, OR PURCHASE OF REAL PROPERTY,
FIXTURES, OR EQUIPMENT RELATED TO THE CHILD CARE FACILITY, BUT
NOT FOR REFINANCING EXISTING LOANS, WORKING CAPITAL, SUPPLIES, OR
INVENTORY.

(I) (1) A DIRECT LOAN SHALL MAY NOT EXCEED 20 PERCENT OF
THE TOTAL AMOUNT OF INVESTMENT FOR RENOVATIONS, CONSTRUCTION, OR
PURCHASE OF REAL PROPERTY, FIXTURES, OR EQUIPMENT AFFIXED TO THE
REAL ESTATE AND REQUIRED TO EXPAND OR DEVELOP THE CHILD CARE
FACILITY;

(2) THE FUNDS PUT FORTH BY THE APPLICANT WITHOUT A
DIRECT LOAN SHALL MAY NOT BE LESS THAN 80 PERCENT OF THE TOTAL
AMOUNT OF INVESTMENT NEEDED TO EXPAND OR DEVELOP THE CHILD CARE
FACILITY; AND

(3) AN APPLICANT MAY APPLY FOR A GUARANTEE OR A LOAN
FROM THE DAY CARE FACILITIES LOAN GUARANTEE FUND IF:

(I) THE APPLICANT MEETS THE REQUIREMENTS
SPECIFIED IN PARAGRAPHS (1) AND (2) OF THIS SUBSECTION; AND

(II) THE APPLICANT MEETS THE REQUIREMENTS
SPECIFIED IN SUBTITLE 2 OF THIS ARTICLE.

6-2A-11.

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