PARRIS N. GLENDENING, Governor Ch. 564

subdivision and in the particular area in which the land is located, including the rate of
unemployment, if available, and any anticipated developments which may affect the rate
of unemployment in the near future; and

(8) Whether there is a shortage of industrial land in the subdivision and in
the particular area in which the land is located.

(c) (1) Upon approval of a loan, the Secretary shall enter into a loan agreement
with the [borrowing subdivision] BORROWER.

(2) Each loan agreement shall include:

(i) A provision for payments of interest only for a period not to exceed
5 years from the date of the loan;

(ii) A provision for payments of principal and interest, in accordance
with an amortization schedule that the Secretary approves, for not more than a 40-year
period from the end of the interest only payment period;

(iii) A provision for an interest rate that equals:

1. The net interest cost of the most recent sale of State general
obligation bonds before the date of the loan plus 1/8 of 1 percent, for a loan made from
sources other than State general obligation bond proceeds;

2. For a loan made from the proceeds of a State general
obligation bond issue either:

A. The net interest cost of the sale of State general obligation
bonds out of which the loan is made plus 1/8 of 1 percent; or

B. The maximum interest rate permitted under applicable
federal tax law or required pursuant to resolutions of the Board of Public Works adopted
in connection with the issuance of the State general obligation bonds out of which the
loan is made;

(iv) A provision that requires the [borrowing subdivision]
BORROWER to give the Secretary at least 30 days prior written notice of any proposed
sale, lease, or conveyance and that requires that prior written approval of the Secretary
before the sale, lease, or conveyance, which approval the Secretary shall grant unless the
sale, lease, or conveyance violates a provision of the loan agreement or is clearly
inconsistent with the purposes of this subtitle; and

(v) A provision that requires, on sale of any portion of the land,
prepayment of the principal of the loan from the sale proceeds in an amount that equals
the amount of the original loan multiplied by the proportion of the land sold to the
amount of land which remains when any land reserved for use by an entire industrial park
is subtracted from the total land for which the loan was made originally and a provision
for reducing the amortization payments accordingly.

(3) The loan agreement may contain regulatory and security provisions.

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