Ch. 689

1994 LAWS OF MARYLAND

(F)      THE MINIMUM INTEREST RATE FOR A DEFENSE ADJUSTMENT LOAN
SHALL BE A FIXED RATE OF 4 PERCENT PER ANNUM.

(G)     THE PROCEEDS OF DEFENSE ADJUSTMENT LOANS MAY BE USED FOR
WORKING CAPITAL FOR THE DEFENSE ADJUSTMENT ACTIVITIES APPROVED BY THE
COMMITTEE.

3-610.

IF AN APPLICANT VIOLATES ANY PROVISION OF THE LOAN DOCUMENTS OR
CEASES TO MEET THE REQUIREMENTS OF THIS SUBTITLE, ON REASONABLE NOTICE
TO THE APPLICANT, THE DEPARTMENT MAY:

(1)      WITHHOLD FROM THE APPLICANT FURTHER ADVANCES OF LOAN
PROCEEDS UNTIL THE APPLICANT COMPLIES WITH THE AGREEMENT OR
REQUIREMENTS; AND

(2)      EXERCISE ANY OTHER REMEDY FOR WHICH THE LOAN DOCUMENTS
PROVIDE.                                                                                                                                         

3-611.                                                                                                                                                 

(A)     A PERSON MAY NOT KNOWINGLY MAKE OR CAUSE ANY FALSE
STATEMENT OR REPORT TO BE MADE IN ANY APPLICATION OR IN ANY DOCUMENT
FURNISHED TO THE DEPARTMENT.

(B)     A PERSON MAY NOT KNOWINGLY MAKE OR CAUSE ANY FALSE
STATEMENT OR REPORT TO BE MADE FOR THE PURPOSE OF INFLUENCING THE
ACTION OF THE DEPARTMENT AFFECTING FINANCIAL ASSISTANCE WHETHER OR
NOT SUCH ASSISTANCE MAY HAVE ALREADY BEEN EXTENDED.

(C)     ANY PERSON WHO VIOLATES ANY PROVISION OF THIS SUBTITLE OR ANY
PERSON WHO AIDS OR ABETS ANOTHER PERSON IN' THE VIOLATION OF THIS
SUBTITLE IS GUILTY OF A MISDEMEANOR AND ON CONVICTION IS SUBJECT TO A
FINE NOT EXCEEDING $50,000 OR IMPRISONMENT NOT EXCEEDING 5 YEARS OR
BOTH.

3-612.           

THE DEPARTMENT SHALL ADOPT REGULATIONS NECESSARY TO CARRY OUT
THE PROVISIONS OF THIS SUBTITLE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency
measure, is necessary for the immediate preservation of the public health and safety, has
been passed by a yea and nay vote supported by three-fifths of all the members elected to
each of the two Houses of the General Assembly, and shall take effect from the date it is
enacted.                                                                                                                                           

Approved May 26, 1994,

- 3086 -