PARRIS N. GLENDENING, Governor

S.B. 810

(b)     The Department shall make the loan or grant from the Fund or from other
sources of money authorized by law.

(c)     (1) A loan or grant may be for up to 90 percent of the nonfederal and
nonprivate portion of the eligible project costs. However, a loan that, as to principal, is to
be repaid in full may not exceed $3,000,000. Any other loan or grant may not exceed
$2,000,000. The aggregate cumulative total of grants and outstanding principal balance of
loans, made to or within any one county or Baltimore City, may not exceed 40 percent of
the aggregate cumulative total of appropriations and payments to the Fund, except that
the aggregate cumulative total of grants and outstanding principal balance of loans may
exceed the 40 percent limitation by an additional sum not to exceed 25 percent of such
amount, if the additional sum is restricted to loans made to a political subdivision
exclusively for use within an area designated an enterprise zone pursuant to [§ 5-302] §
5-402 of this article. Not more than 50 percent of the cumulative total of appropriations
and payments to the Fund may be made available as grants or loans to all of the
designated enterprise zones in the State.

(2) As determined by the Secretary, the principal of a loan:

(i) May be repayable, in whole or in part, from specified revenues or
on a contingency;

(ii) May be noninterest bearing or bear interest at a rate of not more
than 1/8 of 1 percent plus the interest cost of the:

1.       Most recent State general obligation bond issue preceding
approval by the Secretary of the application for the loan for a loan made from sources
other than State general obligation bond proceeds; or

2.       State general obligation bond issue out of which the loan is
made for a loan made from the proceeds of a State general obligation bond issue;

(iii) To the extent that it is to be repaid, may be repayable in
accordance with any schedule, with maturity of up to 25 years; and

(iv) To the extent that it is to be repaid, is a general obligation secured
by the assets and revenues of the political subdivisions that will assure repayment.
However, notwithstanding any other provision of law, a loan to Baltimore City, Baltimore
County, or Prince George's County, under this subtitle may be undertaken or entered into
by the counties or Baltimore City pursuant to and within the limitations of this subtitle
without regard to any limitations set forth in its charter or other applicable public local or
public general law that would otherwise apply, and without complying with any
procedures set forth in its charter or other applicable public local or public general law
that would otherwise be required.

(d)     The Secretary may adopt regulations governing all aspects of the program, and
may in his discretion facilitate the process of application by preparation of guidelines or
formats in nonregulatory form.

[5-504.] 5-804.

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