WILLIAM DONALD SCHAEFER, Governor Ch. 421

(B) (1) THE DEPARTMENT SHALL ANNUALLY RESERVE A PORTION OF
THE FUNDS AVAILABLE FOR FINANCIAL ASSISTANCE UNDER THE PROGRAM
FOR LOANS TO SCHOOLS AND HOSPITALS.

(2) IN A FISCAL YEAR IN WHICH REQUESTS FOR FINANCIAL
ASSISTANCE FROM SCHOOLS AND HOSPITALS ARE LESS THAN THE AMOUNT
RESERVED UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE DEPARTMENT
MAY MAKE THE UNENCUMBERED OR NONCOMMITTED PORTION OF THE RESERVE
AVAILABLE TO OTHER SPONSORS IN THE PROGRAM.

(B) (C) THE DEPARTMENT MAY USE THE FUND TO PAY EXPENSES OF
THE PROGRAM AND TO PROVIDE LOANS TO ELIGIBLE SPONSORS AND
PROJECTS.

(C) (D) (1) THE STATE TREASURER SHALL HOLD AND THE STATE
COMPTROLLER SHALL ACCOUNT FOR THE FUND.

(2)  THE FUND SHALL BE INVESTED AND REINVESTED AND ANY
EARNINGS SHALL BE PAID INTO THE FUND FOR USE IN THE PROGRAM.

(3)  ANY REPAYMENT OF PRINCIPAL AND INTEREST ON LOANS
MADE FROM THE FUND SHALL BE PAID INTO THE FUND.

4-708.

THE DEPARTMENT IS HEREBY AUTHORIZED TO ENTER INTO CONTRACTS
WITH THIRD PARTIES TO MAKE, SERVICE, OR SETTLE LOANS MADE UNDER
THIS SUBTITLE.

4-709.

(A)  A PERSON MAY NOT KNOWINGLY MAKE OR CAUSE TO BE MADE ANY
FALSE STATEMENT OR REPORT IN ANY DOCUMENT REQUIRED TO BE
FURNISHED TO THE DEPARTMENT BY ANY AGREEMENT RELATING TO
FINANCIAL ASSISTANCE.

(B)  A PERSON APPLYING FOR FINANCIAL ASSISTANCE MAY NOT
KNOWINGLY MAKE OR CAUSE ANY FALSE STATEMENT OR REPORT TO BE MADE
FOR THE PURPOSE OF INFLUENCING ANY ACTION OF THE DEPARTMENT ON AN
APPLICATION FOR FINANCIAL ASSISTANCE OR FOR THE PURPOSE OF
INFLUENCING ANY ACTION OF THE DEPARTMENT AFFECTING FINANCIAL
ASSISTANCE ALREADY PROVIDED.

(C)  ANY PERSON WHO VIOLATES ANY PROVISION OF SUBSECTION (A)
OR (B) OF THIS SECTION IS GUILTY OF A MISDEMEANOR AND ON
CONVICTION IS SUBJECT TO A FINE NOT EXCEEDING $50,000 OR
IMPRISONMENT NOT EXCEEDING I YEAR OR BOTH.

SECTION 2. AND BE IT FURTHER ENACTED, That on or before
September 1, 1990, the Department of Housing and Community
Development shall provide a written report to the Legislative
Policy Committee and the Department of Fiscal Services on the

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