Ch. 390

LAWS OF MARYLAND

amount of a loan, the Secretary shall consider and determine in
addition to those factors set forth in § 5-404(b) of this
subtitle, (i) whether the subdivision has available and committed
toward the project sufficient funds to finance its share of the
anticipated project costs; provided, however, that the Secretary
may consider in lieu of funds on hand official and noncontingent
commitments of funds from federal agencies, financial
institutions, or other reliable sources; and provided further
that the Secretary may grant a conditional approval for a period
not exceeding two years in any case where application for all or
part of the balance of the required funds has been made to a
federal agency, financial institution, or other reliable source
and additional time is required for affirmative action on the
application, and (ii) the subdivision has presented evidence
demonstrating its ability to carry out and complete the project
as planned.

(d)  (1) Upon approval of a loan, the Secretary shall enter
into a loan agreement with the borrowing subdivision.

(2)  Each loan agreement shall include:

(i) A provision for payments of interest only
for A PERIOD NOT TO EXCEED 2 years from the date of the loan;

(ii) A provision for payments of principal and
interest, in accordance with an amortization schedule that the
Secretary approves, for not more than a 30-year period from the
end of the [2-year] INTEREST ONLY PAYMENT period; and

(iii) The provisions for interest rate, notice
and approval of conveyances of land, and prepayment of the loan,
as specified in § 5-404(c)(2)(iii) through (v) of this subtitle.

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

(e)   [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.

(f)  The Secretary may, upon application and after
investigation, approve a loan not exceeding $15,000 and on an
equal matching basis with funds of the borrowing subdivision, for
the purpose of financing planning or engineering study costs of
or for a project situate or to be situate on land owned by or
under option to the borrowing subdivision or owned by the federal
government upon reasonable assurance that the site will be made
available to the subdivision. Upon approval of any such loan,
the Secretary and the subdivision shall enter into a loan
agreement requiring repayment within five years at an interest

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