PARRIS N. GLENDENING, Governor                             Ch. 120

(d)     On approval of a loan, the Secretary shall enter into a loan agreement with the
borrowing political subdivision providing for payment of interest only, at a rate
determined by the Secretary in accordance with [§ 5-404(c)(2)(iii)] § 5-704(C)(2)(III) of
this subtitle, beginning on the date of the loan and continuing for a period not to exceed
two years after that date. On sale of the shell building, the political subdivision shall repay
the entire amount of the loan. Subject to the required repayment in the event of a sale,
the principal balance of the loan remaining at the end of the interest only payment period
shall be amortized over a period not exceeding 25 years in accordance with an
amortization schedule approved by the Secretary. The borrowing subdivision shall give to
the Secretary at least 30 days advance notice and obtain his written approval of any sate
or lease. The loan agreement may contain regulatory and security provisions.

(e)     (1) The loan agreement shall be recorded among the land records of the
political subdivision in which the project is located and shall constitute a lien on the land
and the improvements.

(2) Paragraph (1) of this subsection does not apply if a federally funded
contract, grant, loan, project, or reimbursement prohibits the placement of a lien on the
land or improvements that a political subdivision includes in a loan agreement made
under this section.

[5-406.1] 5-707.

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

(2)     "Incubator" means any building of flexible design, owned or controlled
by a political subdivision, for eventual lease to multiple new businesses which share
support services and facilities.

(3)     "New businesses" are businesses which have been in existence for no
longer than 3 years.

(4)     "Project costs" may include planning and engineering studies, design
and engineering services, and building acquisition and building rehabilitation.

(5)     "State-financed research" means research financed in part with the
assistance of the State.

(b)     Any political subdivision may apply to the Secretary for a loan to finance
project costs of rehabilitation of existing buildings for incubators.

(c)     The application shall describe the project in such manner and detail as the
Secretary may, by regulation, determine and shall include the information set forth in [§
5-404(a)] § 5-704(A) of this subtitle as it relates to the incubator project, and a complete
breakdown of the anticipated costs of the project.

(d)     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 incubator project.

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