Ch. 822

LAWS OF MARYLAND

(I)  THE NUMBER AND KIND OF JOBS TO BE CREATED
OR RETAINED AS A RESULT OF PROVIDING THE LINKED DEPOSIT;

(II)  THE AMOUNT OF THE LOAN; AND

(III)  THE AMOUNT OF MONEY IN THE FUND NOT
COMMITTED TO LINKED DEPOSITS;

(IV)  WHETHER THE AVAILABILITY OF LINKED DEPOSIT
FINANCING IS ESSENTIAL FOR THE ECONOMIC FEASIBILITY OF THE
ACQUISITION TO BE MADE;

(V)  THE ECONOMIC NEEDS OF THE AREA IN WHICH THE
BUSINESS IS LOCATED;

(VI)  THE FINANCIAL FEASIBILITY OF THE LOAN TO
BE MADE; AND

(VII)  ANY OTHER FACTORS THAT THE DEPARTMENT
CONSIDERS RELEVANT.

5-606 13-906.

(A)   IF THE DEPARTMENT ACCEPTS A LINKED DEPOSIT LOAN PACKAGE
FROM A LENDER, THE DEPARTMENT AND THE LENDER SHALL ENTER INTO A
DEPOSIT AGREEMENT UNDER WHICH:

(1)  THE DEPARTMENT SHALL PLACE WITH THE LENDER A
5-YEAR CERTIFICATE OF DEPOSIT IN THE AMOUNT OF THE LOAN, AT A
RATE 3 PERCENT BELOW THE LENDER'S PREVAILING RATE FOR EQUIVALENT
DEPOSITS AT THE TIME OF THE DEPOSIT; AND

(2)  THE LENDER WILL AGREE TO APPROVE THE APPLICANT'S
LOAN APPLICATION AT A FIXED INTEREST RATE WHICH SHALL BE AT LEAST
3 PERCENT BELOW ITS THEN CUSTOMARY RATE FOR SIMILAR LOANS, FOR A
TERM OF AT LEAST 5 YEARS, AND UPON SUCH OTHER TERMS AND
CONDITIONS AS THE DEPARTMENT SHALL APPROVE. THE LENDER MUST ALSO
AGREE NOT TO ASSIGN OR SELL THE LOAN TO ANY OTHER LENDER SO LONG
AS THE LINKED DEPOSIT IS IN EFFECT. THE LENDER MUST ALSO AGREE
NOT TO CHARGE THE BORROWER MORE THAN A TOTAL OF 1 PERCENT OF THE
PRINCIPAL AMOUNT OF THE LOAN FOR ORIGINATION, PLACEMENT, OR
DISCOUNT FEES OR OTHER CHARGES AS ADDITIONAL COMPENSATION FOR THE

LOAN.

(B)  ON RECEIVING A LINKED DEPOSIT FROM THE DEPARTMENT, THE
LENDER SHALL CARRY OUT THE LOAN COMMITMENT TO THE APPLICANT.

(C)  AT THE CONCLUSION OF THE DEPOSIT TERM OR AT AN EARLIER
TIME AS THE LOAN TO THE APPLICANT IS REPAID OR OTHERWISE
TERMINATED, THE DEPOSIT SHALL REVERT BASK TO THE FUND, AND THE
RATE OF THE LOAN SHALL RETURN TO THE PREVAILING RATE, AS PROVIDED
IN THE LOAN COMMITMENT.

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