2. FOR ANY OTHER CERTIFIED REHABILITATION, ON OR
BEFORE THE DATE THE CERTIFIED REHABILITATION IS COMPLETED.

(III) AN ELECTION MAY NOT BE MADE UNDER THIS SUBSECTION
FOR A CERTIFIED REHABILITATION OF A CERTIFIED HERITAGE STRUCTURE THAT
HAS BEEN SOLD OR TRANSFERRED IF THE SELLER OR TRANSFEROR OF THE
STRUCTURE HAS USED CLAIMED ANY PART PORTION OF THE CREDIT ALLOWED
UNDER THIS SECTION FOR THE CERTIFIED REHABILITATION.

(3) IF A BUSINESS ENTITY OR INDIVIDUAL MAKES AN ELECTION UNDER
THIS SUBSECTION, THE DIRECTOR SHALL ISSUE A HISTORIC REHABILITATION
MORTGAGE CREDIT CERTIFICATE TO THE BUSINESS ENTITY OR INDIVIDUAL IN A
FACE AMOUNT EQUAL TO THE TOTAL AMOUNT OF THE CREDIT THAT, BUT FOR THE
ELECTION UNDER THIS SUBSECTION, WOULD BE ALLOWABLE TO THE BUSINESS
ENTITY OR INDIVIDUAL WITH RESPECT TO THE CERTIFIED REHABILITATION.

(4) A BUSINESS ENTITY OR INDIVIDUAL MAY TRANSFER A HISTORIC
REHABILITATION MORTGAGE CREDIT CERTIFICATE TO A LENDING INSTITUTION
SUBJECT TO MARYLAND TAX, INCLUDING A NONDEPOSITORY INSTITUTION, IN
CONNECTION WITH A LOAN:

(I) THAT IS SECURED BY A CERTIFIED HERITAGE STRUCTURE; AND

(II) THE PROCEEDS OF WHICH MAY NOT BE USED FOR ANY
PURPOSE OTHER THAN THE ACQUISITION OR REHABILITATION OF THE CERTIFIED
HERITAGE STRUCTURE.

(5) A LENDING INSTITUTION THAT ACCEPTS A HISTORIC
REHABILITATION MORTGAGE CREDIT CERTIFICATE FROM A BUSINESS ENTITY OR
INDIVIDUAL SHALL IN EXCHANGE PROVIDE THE BUSINESS ENTITY OR INDIVIDUAL
AN AMOUNT EQUAL TO THE FACE AMOUNT OF THE HISTORIC REHABILITATION
MORTGAGE CREDIT CERTIFICATE, DISCOUNTED BY THE AMOUNT BY WHICH THE
LENDING INSTITUTION'S FEDERAL INCOME TAX LIABILITY IS INCREASED AS A
RESULT OF ITS USE OF THE HISTORIC REHABILITATION MORTGAGE CREDIT
CERTIFICATE TO OFFSET STATE TAXES UNDER THIS SUBSECTION, TO BE APPLIED
ALLOCATED, AT THE BORROWERS ELECTION:

(I) TO REDUCE THE PRINCIPAL AMOUNT OR TO REDUCE THE
INTEREST RATE ON THE LOAN TO RESULT IN INTEREST PAYMENT REDUCTIONS
SUBSTANTIALLY EQUAL ON A PRESENT VALUE BASIS TO THE FACE AMOUNT OF THE
HISTORIC REHABILITATION MORTGAGE CREDIT CERTIFICATE, AS DISCOUNTED; OR

(II) TO REDUCE THE BUSINESS ENTITY'S OR INDIVIDUAL'S COST OF
PURCHASING THE CERTIFIED HERITAGE STRUCTURE BY AN AMOUNT EQUAL TO THE
FACE AMOUNT OF THE CERTIFICATE, AS DISCOUNTED.

(6) (I) A LENDING INSTITUTION MAY CLAIM A TAX CREDIT UNDER
THIS SECTION IN AN AMOUNT EQUAL TO THE FACE AMOUNT SPECIFIED IN A
HISTORIC REHABILITATION MORTGAGE CREDIT CERTIFICATE.

(II) IF THE CREDIT ALLOWED UNDER THIS SUBSECTION IN ANY
TAXABLE YEAR EXCEEDS THE TOTAL TAX OTHERWISE PAYABLE BY THE LENDING