PARRIS N. GLENDENING, Governor                             Ch. 120

(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;

(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.

(a)     There is a Maryland Enterprise Incentive Deposit Fund [with] IN 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.

(c)     The Fund is a nonlapsing, revolving fund, used to assist eligible businesses in
fixed asset financing through the provision of linked deposits.

(d)     The Fund consists of:

(1)     Money appropriated by the State to the Fund, not to exceed $2,500,000
each year;

(2)     Interest received from linked deposits made from the Fund; and

(3)     Any other moneys made available to the Fund.

5-603.

The Department may make a linked deposit in accordance with the provisions of
this subtitle.

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