Ch. 120                                    1995 LAWS OF MARYLAND

(i) A provision for payments of interest only for a period not to exceed
2 years from the date of the loan;

(ii) A provision for payments of principal and interest, in accordance
with an amortization schedule that the Secretary approves, for not more than a 30-year
period from the end of the interest only payment period; and

(iii) The provisions for interest rate, notice and approval of
conveyances of land, and prepayment of the loan, as specified- in [§ 5-404(c)(2)(iii)
through (v)] § 5-704(C)(2)(III) THROUGH (V) of this subtitle.

(3) The loan agreement may contain regulatory and security provisions.

(e)     The loan agreement shall be recorded among the land records of the
subdivision in which the land is located and shall constitute a lien upon the land and
improvements.

(f)     The Secretary may, upon application and after investigation, approve a loan
not exceeding $15,000 and on an equal matching basis with funds of the borrowing
subdivision, for the purpose of financing planning or engineering study costs of or for a
project situate or to be situate on land owned by or under option to the borrowing
subdivision or owned by the federal government upon reasonable assurance that the site
will be made available to the subdivision. Upon approval of any such loan, the Secretary
and the subdivision shall enter into a loan agreement requiring repayment within five
years at an interest rate calculated pursuant to [§ 5-404(c)(2)(iii)] § 5-704(C)(2)(III) of
this subtitle and in accordance with an amortization schedule approved by the Secretary.

[5-406.] 5-706.

(a)     (1) In this section, the following words have the meanings indicated.

(2)     "Project costs" may include planning and engineering studies, land
acquisition, site preparation, and all construction costs.

(3)     "Shell building" means a basic structure of flexible design or a
rehabilitated building, erected on land owned or controlled by the political subdivision,
for eventual sale or lease to a purchaser or tenant requiring facilities for manufacturing,
assembling, fabricating, processing, warehousing, research and development, or office
use.

(b)     Any political subdivision may apply to the Secretary for a loan to finance
project costs of a shell building project. The application shall describe the project in the
manner and detail required by the Secretary and shall include the information set forth in
[§ 5-404(a)] § 5-704(A) of this subtitle as it relates to the shell building project, and a
complete breakdown of the anticipated cost of the project.

(c)     In determining whether or not to approve a loan and the amount of the loan,
the Secretary shall consider those factors set forth in [§ 5-404(b)] § 5-704(B) of this
subtitle as they relate to the shell building project. After the investigation he considers
necessary, the Secretary may approve a loan of all or any part of the project costs, not to
exceed $2,000,000.

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