PARRIS N. GLENDENING, Governor                             S.B. 810

(g) The Department may make direct loans to child care centers whether or not
they are located in applicants' homes but a minimum of a direct loan for a child care
facility located in a home shall be $i5,000.

(h) The proceeds of the direct loans may be used for renovations, construction, or
purchase of real property, fixtures, or equipment related to the child care facility, but not
for refinancing existing loans, working capital, supplies, or inventory.

(i) (1) Except as provided in paragraph (2) of this subsection, a direct loan may
not exceed 50 percent of the total amount of investment for renovations, construction, or
purchase of real property, fixtures, or equipment affixed to the real estate and required to
expand or develop the child care facility.

(2)     An applicant for a direct loan under this subtitle who is also receiving a
loan guaranteed by the Day Care Facilities Loan Guarantee Fund under Subtitle [2] 1 of
this title shall be limited to a direct loan of not more than 20 percent of the total amount
of investment required for the purposes specified in paragraph (1) of this subsection.

(3)     The applicant shall provide the remainder of the total funds required for
the purposes specified in paragraph (1) of this subsection.

[6-2A-11.] 6-211.

If an applicant violates any provision of the loan documents or ceases to meet the
requirements of this subtitle, on reasonable notice to the applicant, the Department may:

(1)     Withhold from the applicant further advances of loan proceeds until the
applicant complies with the agreement or requirements; and

(2)     Exercise any other remedy for which the loan documents provide.
[6-2A-12.] 6-212.

(a)     A person may not knowingly make or cause any false statement or report to be
made in any application or in any document furnished to the Department.

(b)     A person may not knowingly make or cause any false statement or report to be
made for the purpose of influencing the action of the Department on an application for
financial assistance or for the purpose of influencing any action of the Department
affecting financial assistance whether or not such assistance may have already been
extended.

(c)     Any person or any aider or abettor, who violates any provision of this subtitle,
is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or
imprisonment in the penitentiary not exceeding 5 years, or both.

[6-2A-13.] 6-213.

The Department shall promulgate such rules as are necessary to carry out the
purposes of this subtitle.

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