WILLIAM DONALD SCHAEFER, Governor Ch. 390

(F) ON APPROVAL OF THE LOAN, THE SECRETARY SHALL ENTER INTO
A LOAN AGREEMENT WITH THE BORROWING POLITICAL SUBDIVISION
PROVIDING FOR:

(1)  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 2 YEARS AFTER THAT DATE;

(2)  PAYMENTS OF PRINCIPAL AND INTEREST, IN ACCORDANCE
WITH AN AMORTIZATION SCHEDULE APPROVED BY THE SECRETARY, FOR A
PERIOD NOT TO EXCEED 2 5 YEARS FROM THE END OF THE INTEREST ONLY
PAYMENT PERIOD;

(3)  REPAYMENT OF THE ENTIRE AMOUNT DUE UNDER THE LOAN
IN THE EVENT OF SALE OF THE INCUBATOR;

(4)  AT LEAST 30 DAYS' ADVANCE NOTICE TO THE SECRETARY
BY THE POLITICAL SUBDIVISION OF ANY PROPOSED SALE OR LEASE OF THE
INCUBATOR;

(5)  THE POLITICAL SUBDIVISION OBTAINING THE
SECRETARY'S WRITTEN APPROVAL OF ANY SUCH SALE OR LEASE; AND

(6)  REGULATORY OR SECURITY PROVISIONS, AS THE
SECRETARY DEEMS APPROPRIATE.

(G) WHERE PERMITTED BY LAW APPLICABLE TO THE POLITICAL
SUBDIVISION, THE LOAN AGREEMENT SHALL BE RECORDED AMONG THE LAND
RECORDS OF THE POLITICAL SUBDIVISION AND SHALL CONSTITUTE A LIEN
ON THE LAND AND IMPROVEMENTS.

5-408.

(f) (1) Before making a loan that has been approved by the
Secretary under this section, the Department shall enter into a
loan agreement with the borrowing political subdivision.

(2) Each loan agreement shall include:

(i) A provision for payments of interest only
for a [2-year] 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 25-year period from the
end of the [2-year] INTEREST ONLY PAYMENT period;

(iii) A provision for an interest rate 1. that
equals the net interest costs of the most recent sale of State
general obligation bonds before the date of the loan plus 1/8 of
1 percent for a loan made from sources other than State general

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