S.B. 810

VETOES

(7)     Information that relates to the financial status of the applicant,
including, if applicable:

(i) A current balance sheet;

(ii) A profit and loss statement; and

(iii) Credit references;

(8)     Evidence that the loan applicant will, as of the loan closing, own, have
an option to purchase, or have a lease with a term of at least 10 years for the child care
facility; and

(9)     Any other relevant information that the Department requests.
[6-2A-10.] 6-210.

(a)     Except as provided in this subtitle, the Department may set the terms and
conditions for direct loans.

(b)     If the Department decides to lend money to an applicant, the Department
shall prepare loan documents.

(c)     The loan documents shall include:

(1)     The rate of interest on the loan;

(2)     The amount of the loan;

(3)     A requirement that before each disbursement of loan proceeds is
released to the applicant, the applicant and the Department cosign the request for the
funds;

(4)     Provisions for repayment of the loan; and

(5)     Any other provisions that the Department determines are necessary to
secure the loan, including the taking of liens and security interests in real and personal
property.

(d)     Mortgages or deeds of trust held as security for loans made under this
subsection which are in default may be foreclosed by the Department in the same manner
as provided by the Maryland Rules of Procedure for foreclosures in private transactions.
The Department is authorized to take title in its name to any such property foreclosed as
well as to convey title to such property to bona fide purchasers thereof.

(e)     The term of the direct loan may not exceed 20 years.

(f)      The applicant for a direct loan to finance a child care center must agree to
operate the child care center for at least the term of the loan and to repay the outstanding
loan in full upon transfer, sale, or refinancing of the facility prior to the end of the loan
term; and the direct loan documents may provide for penalties for any applicant who fails
to operate the child care centers for the entire term of the loan.

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