VETOES

(B)  IF THE DEPARTMENT DECIDES TO LEND MONEY TO AN
APPLICANT, THE DEPARTMENT SHALL PREPARE LOAN DOCUMENTS.

(C)  THE LOAN DOCUMENTS SHALL INCLUDE:

(1)  THE RATE OF INTEREST ON THE LOAN;

(2)  THE AMOUNT OF THE LOAN;

(3)  A REQUIREMENT THAT BEFORE EACH DISBURSEMENT OF
LOAN PROCEEDS IS RELEASED TO THE APPLICANT, THE APPLICANT .AND THE
DEPARTMENT COSIGN THE REQUEST FOR THE FUNDS;

(4)  PROVISIONS FOR REPAYMENT OF THE LOAN; AND

(5)  ANY OTHER PROVISIONS THAT THE DEPARTMENT
DETERMINES ARE NECESSARY TO SECURE THE LOAN, INCLUDING THE TAKING
OF LIENS AND SECURITY INTERESTS IN REAL AND PERSONAL PROPERTY.

(D)  MORTGAGES OR DEEDS OF TRUST HELD AS SECURITY FOR LOANS
MADE UNDER THIS SECTION WHICH ARE IN DEFAULT MAY BE FORECLOSED BY
THE DEPARTMENT IN THE SAME MANNER AS PROVIDED BY THE MARYLAND
RULES OF PROCEDURE FOR FORECLOSURES IN PRIVATE TRANSACTIONS. THE
DEPARTMENT IS AUTHORIZED TO TAKE TITLE IN ITS NAME TO ANY SUCH
PROPERTY FORECLOSED AS WELL AS TO CONVEY TITLE TO SUCH PROPERTY
TO BONA FIDE PURCHASERS THEREOF.

(D) (E) THE TERM OF THE DIRECT LOAN MAY NOT EXCEED 20
YEARS.

(E) (F) THE APPLICANT FOR A DIRECT LOAN TO FINANCE A CHILD
CARE CENTER MUST AGREE TO OPERATE THE CHILD CARE CENTER FOR AT
LEAST THE TERM OF THE LOAN AND TO REPAY THE OUTSTANDING LOAN IN
FULL UPON TRANSFER, SALE, OR REFINANCING OF THE FACILITY PRIOR TO
THE END OF THE LOAN TERM; AND THE DIRECT LOAN DOCUMENTS MAY
PROVIDE FOR PENALTIES FOR ANY APPLICANT WHO FAILS TO OPERATE THE
CHILD CARE CENTERS FOR THE ENTIRE TERM OF THE LOAN.

(F) (G) THE DEPARTMENT MAY MAKE DIRECT LOANS TO CHILD CARE

CENTERS WHETHER OR NOT THEY ARE LOCATED IN APPLICANTS' HOMES BUT

A MINIMUM OF A DIRECT LOAN FOR A CHILD CARE FACILITY LOCATED IN A
HOME SHALL BE $15,000.

(G) (H) THE PROCEEDS OF THE DIRECT LOANS MAY BE USED FOR
RENOVATIONS, CONSTRUCTION, OR PURCHASE OF REAL PROPERTY,
FIXTURES, OR EQUIPMENT RELATED TO THE CHILD CARE FACILITY, BUT
NOT FOR REFINANCING EXISTING LOANS, WORKING CAPITAL, SUPPLIES, OR
INVENTORY.

(I) (1) A DIRECT LOAN MAY NOT EXCEED 20 PERCENT OF THE
TOTAL AMOUNT OF INVESTMENT FOR RENOVATIONS, CONSTRUCTION, OR
PURCHASE OF REAL PROPERTY, FIXTURES, OR EQUIPMENT AFFIXED TO THE

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