Ch. 421

LAWS OF MARYLAND

(4) A DESCRIPTION OF THE SPONSOR'S CONTRIBUTION TO A
PROPOSED PROJECT AS REQUIRED BY § 4-706(B) OF THIS' SUBTITLE.

4-706.

(A)  LOANS MAY BE USED FOR THE COSTS OF IMPLEMENTING AN
ENERGY CONSERVATION PROJECT, INCLUDING COSTS OF ALL NECESSARY
TECHNICAL ASSESSMENTS, STUDIES, SURVEYS, PLANS AND
SPECIFICATIONS, START-UP, ARCHITECTURAL, ENGINEERING, OR OTHER
SPECIAL SERVICES, AS WELL AS COSTS OF CONSTRUCTION,
REHABILITATION, OR MODIFICATION, INCLUDING THE PURCHASE AND
INSTALLATION OF ANY NECESSARY MACHINERY, EQUIPMENT, OR
FURNISHINGS.

(B)  EACH SPONSOR MUST MAKE A CONTRIBUTION TO A PROJECT THAT
IS OF A TYPE AND AMOUNT ACCEPTABLE TO THE DEPARTMENT.

(C)  THE SPONSOR MUST DOCUMENT THAT THE ANTICIPATED ENERGY
COST SAVINGS OVER A DEFINED PERIOD FOLLOWING THE COMPLETION OF
THE PROJECT ARE GREATER THAN THE COST OF THE PROJECT.

(D)  LOANS MADE UNDER THE PROGRAM SHALL:

(1)  BE REPAYABLE BY THE SPONSOR FROM SPECIFIED
REVENUES WHICH MAY INCLUDE THE ENERGY COST SAVINGS GENERATED BY A
PROJECT;

(2)  BEAR INTEREST AT A RATE DETERMINED BY THE
DEPARTMENT TO BE NECESSARY AND REASONABLE FOR THE PROJECT; AND

(3)  BE REPAYABLE IN ACCORDANCE WITH A SCHEDULE
DETERMINED BY THE DEPARTMENT WHICH MAY BE ON A DEFERRED PAYMENT
BASIS.

(E)  THE DEPARTMENT SHALL REQUIRE A SPONSOR TO PROVIDE
ASSURANCES FOR THE REPAYMENT OF A LOAN. SUCH ASSURANCES SHALL
INCLUDE A PROMISSORY NOTE AND MAY ALSO INCLUDE SUPERIOR OR
SUBORDINATE MORTGAGE LIENS, GUARANTEES OF REPAYMENT, OR OTHER
FORMS OF COLLATERAL.

(F)  LOANS MAY BE MADE IN CONJUNCTION WITH, OR IN ADDITION
TO, FINANCIAL ASSISTANCE PROVIDED THROUGH OTHER DEPARTMENTAL,
STATE, OR FEDERAL PROGRAMS.

4-707.

(A) THE FUND SHALL OPERATE AS A CONTINUING, NONLAPSING,
SPECIAL FUND, THAT CONSISTS OF MONEYS APPROPRIATED BY THE STATE
TO THE PROGRAM, INCLUDING THE ENERGY OVERCHARGE RESTITUTION TRUST
FUND, MONEYS RECEIVED FROM OTHER PUBLIC OR PRIVATE SOURCES,
INCLUDING THE ENERGY OVERCHARGE RESTITUTION TRUST FUND, INTEREST
EARNINGS ON THE FUND, AND REPAYMENTS AND PREPAYMENTS OF PRINCIPAL
AND INTEREST ON LOANS MADE FROM THE FUND.

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