PARRIS N. GLENDENING, Governor

Ch. 564

(iv) To the extent that it is to be repaid (3) EXCEPT AS PROVIDED IN
PARAGRAPHS (4) AND (5) OF THIS SUBSECTION, THE FIRST 40 PERCENT OF THE
OBLIGATION INITIAL PRINCIPAL BALANCE OF A LOAN MADE UNDER THIS SUBTITLE
is a general obligation secured by the assets and revenues of the political subdivisions that
will assure repayment SUBDIVISION IN WHICH THE PROJECT IS LOCATED AS
PROVIDED EITHER IN THE LOAN DOCUMENT DOCUMENTS BETWEEN THE
DEPARTMENT AND A BORROWING POLITICAL SUBDIVISION OR, WHEN A POLITICAL
SUBDIVISION IS NOT THE BORROWER, IN A GUARANTEE AGREEMENT BETWEEN THE
DEPARTMENT AND A POLITICAL SUBDIVISION. However, notwithstanding any other
provision of law, a loan to OR GUARANTEE BY 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.

(4) BEFORE EXECUTING A LOAN OR GUARANTEE AGREEMENT, THE
SECRETARY MAY INCREASE THE PERCENT OF THE INITIAL PRINCIPAL BALANCE OF
A LOAN MADE UNDER THIS SUBTITLE THAT CONSTITUTES A GENERAL OBLIGATION
OF THE SUBDIVISION IN WHICH THE PROJECT IS LOCATED IF THE SECRETARY
DETERMINES THAT THE REQUESTED FINANCING IS NOT SUFFICIENTLY SUPPORTED
BY:

(I) THE QUALITY OF THE APPLICANT'S CREDIT; OR

(II) THE EXPECTED REVENUE OF THE PROJECT.

(5) UPON APPROVAL OF THE SECRETARY, A LOAN MADE UNDER THIS
SUBTITLE DOES NOT CONSTITUTE A GENERAL OBLIGATION OF THE POLITICAL
SUBDIVISION IN WHICH THE PROJECT IS LOCATED IF:

(I) THE LOAN DOES NOT EXCEED $100,000:

(II) THE POLITICAL SUBDIVISION IN WHICH THE PROJECT IS
LOCATED PROVIDES CASH FUNDS FOR THE PROJECT THAT EQUALS 40 PERCENT OF
THE LOAN MADE UNDER THIS SUBTITLE; AND

(III) THE SECRETARY DETERMINES THAT THE DEPARTMENT HAS
ADEQUATE COLLATERAL TO SECURE THE LOAN OR THAT THE PROJECT IS
EXPECTED TO GENERATE REVENUE SUFFICIENT TO REPAY THE LOAN.

5-804.

(a) For approval of a loan or grant by the Secretary, the [political subdivision or
its development agency] APPLICANT shall file with the Department a project plan that
includes:

(1) A legal description of the land within the project area;

(2) A description of the present condition and uses of the land;

- 3095 -