WILLIAM DONALD SCHAEFER, Governor Ch. 390

rate calculated pursuant to § 5-404(c)(2)(iii) of this subtitle
and in accordance with an amortization schedule approved by the
Secretary.

5-406.

(a)  (1) In this section, the following words have the
meanings indicated.

(2)  "Project costs" may include planning and
engineering studies, land acquisition, site preparation, and all
construction costs.

(3)  "Shell building" means a basic structure of
flexible design or a rehabilitated building, erected on land
owned or controlled by the political subdivision, for eventual
sale or lease to a purchaser or tenant requiring facilities for
manufacturing, assembling, fabricating, processing, warehousing,
research and development, or office use.

(b)  Any political subdivision may apply to the Secretary
for a loan to finance project costs of a shell building project.
The application shall describe the project in the manner and
detail required by the Secretary and shall include the
information set forth in § 5-404(a) of this subtitle as it
relates to the shell building project, and a complete breakdown
of the anticipated cost of the project.

(c)  In determining whether or not to approve a loan and the
amount of the loan, the Secretary shall consider those factors
set forth in § 5-404(b) of this subtitle as they relate to the
shell building project. After the investigation he considers
necessary, the Secretary may approve a loan of all or any part of
the project costs, not to exceed $1,500,000.

(d)  On approval of a loan, the Secretary shall enter into a
loan agreement with the borrowing political subdivision providing
for payment of interest only, at a rate determined by the
Secretary in accordance with § 5-404(c)(2)(iii) of this subtitle,
beginning on the date of the loan and continuing for A PERIOD NOT
TO EXCEED two years after that date. On sale of the shell
building, the political subdivision shall repay the entire amount
of the loan. Subject to the required repayment in the event of a
sale, the principal balance of the loan remaining at the end of
the [two-year amortization] INTEREST ONLY PAYMENT period shall be
amortized over a period not exceeding 25 years in accordance with
an amortization schedule approved by the Secretary. The
borrowing subdivision shall give to the Secretary at least 30
days advance notice and obtain his written approval of any sale
or lease. The loan agreement may contain regulatory and security
provisions.

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