PARRIS N. GLENDENING, Governor

S.B. 810

(e)     The term of the special loan may not exceed 10 years.

(f)      (1) The applicant for a special loan to finance a child care facility must
agree to operate the child care facility for at least the term of the loan and to repay the
outstanding loan in full upon the loss of license, termination of lease, or transfer, sale, or
refinancing of the child care facility, as applicable, before the end of the loan term.

(2) The special loan documents may provide for penalties for any applicant
who fails to operate the child care facility for the entire term of the loan.

(g)     The minimum amount of a special loan for a facility shall be $1,000 and the
maximum amount shall be [$5,000] $10,000.

(h) (1) The proceeds of the special loans may be used:

(i) To assist applicants in meeting applicable State and local child
care standards;

(ii) To pay for minor renovations, and for upgrading child care
facilities to assure that applicants meet State and local child care standards; or

(iii) For the purchase and installation of equipment, machinery, and
furniture, including equipment needed to accommodate children with special needs.

(2) The loan proceeds may not be used for the purchase or improvement of
land or for the purchase, construction, or improvement of any building or facility.

(i) An applicant for a special loan under this subtitle may also receive a direct
loan from the Child Care Facilities Direct Loan Fund and a loan guaranteed by the Day
Care Facilities Loan Guarantee Fund.

[6-3A-10.] 6-310.

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.
[6-3A-11.] 6-311.

(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 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 not exceeding 5 years or both.

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