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H.B. 972
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VETOES,
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(III) AGREES TO RECEIVE LINKED DEPOSITS UNDER THE
PROVISIONS OF THIS SUBTITLE; AND
(IV) IS INSURED BY:
1. THE FEDERAL DEPOSIT INSURANCE CORPORATION; OR.
2. FEDERAL SAVINGS AND LOAN INSURANCE
CORPORATION.
(6) "LINKED DEPOSIT" MEANS A CERTIFICATE OF DEPOSIT THAT IS
PLACED BY THE AUTHORITY WITH A LENDER AT 3 PERCENT AND EARNS INCOME
BELOW THE PREVAILING MARKET RATE FOR EQUIVALENT DEPOSITS MADE WITH
THE LENDER AT THE TIME OF THE DEPOSIT.
(B) (1) THERE IS A LINKED DEPOSIT PROGRAM IN THE DEPARTMENT,
WHICH REPLACES THE DEPARTMENT'S MARYLAND ENTERPRISE INCENTIVE DEPOSIT
FUND PROGRAM.
(2) THE PURPOSE OF THE LINKED DEPOSIT PROGRAM IS TO STIMULATE
ECONOMIC AND EMPLOYMENT GROWTH IN RURAL AREAS OF THE STATE THAT HAVE
HIGH UNEMPLOYMENT.
(3) THE PROGRAM WILL ASSIST ELIGIBLE BUSINESSES IN OBTAINING
LOANS AT LOWER THAN MARKET RATES.
(4) THE ELIGIBLE BUSINESS MAY USE THE LOAN FOR THE ACQUISITION
OF LAND, BUILDINGS, MACHINERY, AND EQUIPMENT.
(5) THE ACQUISITIONS MADE BY THE ELIGIBLE BUSINESS SHALL BE
USED TO CREATE OR RETAIN EMPLOYMENT OPPORTUNITIES IN THE RURAL AREA.
(C) THE AUTHORITY MAY MAKE PLACE A LINKED DEPOSIT WITH A LENDER IN
ACCORDANCE WITH THE PROVISIONS OF THIS SUBTITLE.
(D) (1) TO OBTAIN FIXED ASSET FINANCING ASSISTED BY A LINKED
DEPOSIT UNDER THE PROVISIONS OF THIS SUBTITLE, AN ELIGIBLE BUSINESS SHALL
APPLY TO A LENDER FOR FIXED ASSET FINANCING OF NOT MORE THAN $500,000.
(2) IN ADDITION TO THE INFORMATION REQUIRED BY THE LENDER AS
PART OF ITS STANDARD LOAN APPLICATION PROCEDURE, THE APPLICANT SHALL
PROVIDE TO THE LENDER, IN A FORM PRESCRIBED BY THE AUTHORITY:
(I) A CERTIFICATION, WITH SUPPORTING DOCUMENTATION, THAT
THE APPLICANT IS AN ELIGIBLE BUSINESS; AND
(II) A DESCRIPTION OF THE NUMBER AND KINDS OF JOBS TO BE
CREATED OR RETAINED AS A RESULT OF PROVIDING THE LINKED DEPOSIT.
(E) (1) ON CONDITIONAL APPROVAL OF A FIXED ASSET FINANCING LOAN
APPLICATION TO BE ASSISTED BY A LINKED DEPOSIT, THE LENDER SHALL FORWARD
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- 4674 -
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