VETOES
House Bill No. 768

AN ACT concerning

Day Care Facilities Loan Guarantee Fund and
Child Care Facilities Direct Loan Fund

FOR the purpose of creating the Child Care Facilities Direct Loan
Fund; defining certain terms; providing that the money in
the Direct Loan Fund shall be used for direct loans for
certain child care facilities; permitting the Department of
Economic and Employment Development to delegate its
authority to approve guarantees and direct loans to any
board within the Department; requiring the Department to
prepare loan documents for a borrower from the Direct Loan
Fund; requiring the direct loan documents to contain certain
provisions; providing for the minimum amount for certain
direct loans and the maximum term for direct loans; limiting
the amount of the direct loan to a certain percentage of the
total investment in the child care facility; limiting the
use of proceeds from the Direct Loan Fund; providing that
the Direct Loan Fund shall be a revolving fund; deleting the
provision permitting the guarantee of an equity investment;
deleting the Guarantee Fund application requirement that a
current balance sheet be audited; deleting the provision
allowing the Department to contract with . a nonprofit
organization to operate and manage the Guarantee Fund;
making certain stylistic changes; expanding the authorized
sources and uses of funds for the Guarantee Fund and
providing for the authorized sources and uses of the Direct
Loan Fund; providing for the disposition of excess funds;
setting forth application requirements; authorizing the
Department to set certain terms and conditions for direct
loans; providing a criminal certain penalty for a violation
of this Act; and generally relating to the Child Day Care
Facilities Loan Guarantee Fund and the Child Care Facilities
Direct Loan Fund.

BY repealing

Article 41A - Department of Economic and Employment

Development
Section 6-202

Annotated Code of Maryland
(1986 Replacement Volume and 1987 Supplement)

BY repealing and reenacting, with amendments,

Article 41A - Department of Economic and Employment

Development
Section 6-203 through 6-210, inclusive and 6-212(c)

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