PARRIS N. GLENDENING, Governor

Ch. 610

(3) SHALL BE INVESTED AND REINVESTED IN THE SAME MANNER AS
OTHER STATE FUNDS.

(D)     THE FUND SHALL BE USED:

(1)      TO PAY ALL EXPENSES OF ADMINISTERING THE FUND;

(2)      TO GUARANTEE LOANS OR PORTIONS OF LOANS ACCEPTED BY THE
DEPARTMENT UNDER THE PROVISIONS OF THIS SUBTITLE; AND

(3)      TO PROVIDE OTHER FORMS OF CREDIT ENHANCEMENT OR
BORROWER ASSISTANCE AUTHORIZED BY THIS SUBTITLE.

(E)     (1) THE DEPARTMENT SHALL MAY ESTABLISH PREMIUMS AND FEES
FOR LOAN GUARANTEES AND OTHER FORMS OF CREDIT ENHANCEMENT OFFERED
UNDER THIS SUBTITLE, IN AN AMOUNT CALCULATED TO COVER ADMINISTRATIVE
COSTS AS WELL AS ANTICIPATED PAYMENTS DUE TO DEFAULTS ON LOANS CAUSING
GUARANTEED LOSSES TO LENDERS OR LOSSES OR OTHER LIABILITIES INCURRED IN
CONNECTION WITH ANY OTHER CREDIT ENHANCEMENT PROVIDED BY THE
DEPARTMENT UNDER THIS SUBTITLE.

(2) ALL PREMIUM AND FEE INCOME SHALL BE CREDITED TO THE FUND
FOR THE OPERATION OF THE FUND AND THE PROVISION OF ADDITIONAL
GUARANTEE AND OTHER JOB TRAINING LOAN ASSISTANCE AND DOES NOT REVERT
TO THE STATE'S GENERAL FUND.

3-704. 3-703.

(A)     THE DEPARTMENT, IN ITS OWN NAME OR IN THE NAME OF THE
MARYLAND WORKFORCE TRAINING FINANCE FUND, MAY, WITH RESPECT TO A
LOAN OR ANY PORTION OF A LOAN THAT IS MADE BY AN APPROVED LENDER TO AN
EMPLOYER OR OTHER APPROVED ENTITY THAT IS OR WILL BE LOCATED IN THE
STATE FOR A WORKFORCE TRAINING PROJECT OR PROGRAM THAT IS APPROVED BY
THE DEPARTMENT:

(1)      GUARANTEE THE PAYMENT OF PART OR ALL OF PRINCIPAL,
INTEREST, AND OTHER AMOUNTS OUTSTANDING;

(2)      PROVIDE OTHER FORMS OF CREDIT ENHANCEMENT; OR

(3)      PAY INTEREST SUBSIDIES OR PROVIDE OTHER BORROWER
ASSISTANCE TO THE BORROWER.

(B)     (1) THE DEPARTMENT MAY ENTER INTO CONTRACTS WITH
EMPLOYERS, FINANCIAL ENTITIES, OR INTERMEDIARIES SUCH AS EDUCATIONAL
INSTITUTIONS OR OTHER ENTITIES WITH EXPERTISE IN JOB TRAINING, INCLUDING
OTHER STATE OR LOCAL GOVERNMENT AGENCIES, AS IT DETERMINES ARE
APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS SUBSECTION.

(2) WHEREVER POSSIBLE. CONTRACTS SHOULD MAKE ALL POSSIBLE USE OF
EXISTING FACILITIES AND PROGRAMS.

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