Ch. 390

LAWS OF MARYLAND

A.  The net interest cost of the sale of
State general obligation bonds out of which the loan is made plus
1/8 of 1 percent; or

B.  The maximum interest rate permitted
under applicable federal tax law or required pursuant to
resolutions of the Board of Public Works adopted in connection
with the issuance of the State general obligation bonds out of
which the loan is made;

(iv) A provision that requires the borrowing
subdivision to give the Secretary at least 30 days prior written
notice of any proposed sale, lease, or conveyance and that
requires that prior written approval of the Secretary before the
sale, lease, or conveyance, which approval the Secretary shall
grant unless the sale, lease, or conveyance violates a provision
of the loan agreement or is clearly inconsistent with the
purposes of this subtitle; and

(v) A provision that requires, on sale of any
portion of the land, prepayment of the principal of the loan from
the sale proceeds in an amount that equals the amount of the
original loan multiplied by the proportion of the land sold to
the AMOUNT OF LAND WHICH REMAINS WHEN ANY LAND RESERVED FOR USE
BY AN ENTIRE INDUSTRIAL PARK IS SUBTRACTED FROM THE total land
for which the loan was made originally and a provision for
reducing the amortization payments accordingly.

(3) The loan agreement may contain regulatory and
security provisions.

(d)   [The] WHERE PERMITTED BY LAW APPLICABLE TO THE

BORROWING POLITICAL SUBDIVISION, THE loan agreement shall be
recorded among the land records of the subdivision in which the
land is located and shall constitute a lien upon the land and
improvements.

(e)  A loan may be made under this section to acquire
railroad property or rights-of-way, up to 100 percent of the cost
of acquisition. The contents of the application set forth in
subsection (a) OF THIS SECTION and the factors to be considered
by the Secretary set forth in subsection (b) OF THIS SECTION, to
the extent applicable, apply to railroad property or
rights-of-way, particularly the need for rail service to support
existing or potential industry, commerce, or agriculture, and the
need for acquisition to avoid the effects of discontinuance of
service or abandonment of railroad use. References to land
shall, for the purposes of this subsection, refer to the railroad
property or rights-of-way to be acquired.

5-405.

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