Ch. 822                                       LAWS OF MARYLAND

(2) "FIXED ASSET FINANCING" DOES NOT INCLUDE THE
REFINANCING OF AN EXISTING DEBT.

(E)   "FUND" MEANS THE MARYLAND ENTERPRISE DEPOSIT INCENTIVE
FUND.

(F)   "LENDER" MEANS A FINANCIAL INSTITUTION THAT:

(1)  IS ELIGIBLE TO MAKE COMMERCIAL LOANS;

(2)  IS A PUBLIC DEPOSITORY OF STATE FUNDS; AND

(3)  AGREES TO RECEIVE LINKED DEPOSITS UNDER THE
PROVISIONS OF THIS SUBTITLE . ; AND

(4)   IS INSURED BY:

(I)  THE FEDERAL DEPOSIT INSURANCE CORPORATION;
OR

(II)  THE FEDERAL SAVINGS AND LOAN INSURANCE
CORPORATION.

(G)   "LINKED DEPOSIT" MEANS A CERTIFICATE OF DEPOSIT PLACED
BY THE DEPARTMENT WITH A LENDER AT 3 PERCENT BELOW THE PREVAILING
MARKET RATE AT THE TIME OF THE DEPOSIT.

5-602 13-902.

(A)  THERE IS A MARYLAND ENTERPRISE INCENTIVE DEPOSIT FUND
WITH THE DEPARTMENT.

(B)  (1) THE PURPOSE OF THIS FUND IS TO STIMULATE ECONOMIC
AND EMPLOYMENT GROWTH IN RURAL AREAS OF THE STATE THAT HAVE HIGH
UNEMPLOYMENT.

(2)  THE FUND WILL ASSIST SMALL BUSINESSES IN
OBTAINING LOANS AT LOWER THAN MARKET RATES.

(3)  THE SMALL BUSINESS MAY USE THE LOAN FOR THE
ACQUISITION OF LAND, BUILDINGS, MACHINERY, AND EQUIPMENT.

(4)  THE ACQUISITIONS MADE BY THE SMALL BUSINESS SHALL
BE USED TO CREATE OR RETAIN EMPLOYMENT OPPORTUNITIES IN THE RURAL
AREA.

(B) (C) THE FUND IS A NONLAPSING, REVOLVING FUND, USED TO
ASSIST ELIGIBLE BUSINESSES IN FIXED ASSET FINANCING THROUGH THE
PROVISION OF LINKED DEPOSITS.

(C) (D) THE FUND CONSISTS OF:

- 4470 -