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Session Laws, 2000
Volume 797, Page 704   View pdf image
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Ch. 98 2000 LAWS OF MARYLAND
4-207. (A) (1) THERE IS A CAPITAL ACCESS PROGRAM WITHIN THE
NEIGHBORHOOD BUSINESS DEVELOPMENT PROGRAM TO STIMULATE PRIVATE
SECTOR LENDING TO SMALL BUSINESSES THROUGHOUT THE STATE. (2) THE CAPITAL ACCESS PROGRAM IS DESIGNED TO ENCOURAGE
PRIVATE LENDERS TO PROVIDE FOR A RESERVE OF FUNDS AS ADDITIONAL
SECURITY FOR PRIVATE SECTOR LOANS MADE UNDER THIS SECTION. (B) THE DEPARTMENT MAY ENTER INTO A CAPITAL ACCESS PROGRAM
PARTICIPATION AGREEMENT WITH EACH LENDER ELIGIBLE TO PARTICIPATE IN THE
CAPITAL ACCESS PROGRAM. (C) TO BE ELIGIBLE TO PARTICIPATE IN THE CAPITAL ACCESS PROGRAM, A
LENDER SHALL: (1) BE A FEDERALLY INSURED FINANCIAL INSTITUTION, AS DEFINED IN
§ 1-101 OF THE FINANCIAL INSTITUTIONS ARTICLE, OR OTHER INSTITUTION
REGULATED BY THE COMMISSIONER OF FINANCIAL REGULATION; AND (2) ENTER INTO A PARTICIPATION AGREEMENT WITH THE DEPARTMENT
UNDER WHICH THE LENDER: (I) SHALL AGREE TO: 1. ENROLL IN THE CAPITAL ACCESS PROGRAM LOANS MADE
TO ELIGIBLE SMALL BUSINESSES; 2. ESTABLISH A LOAN RESERVE ACCOUNT WITH A
FEDERALLY INSURED FINANCIAL INSTITUTION AS ADDITIONAL SECURITY TO COVER
LOSSES SUSTAINED BY THE LENDER ON ANY LOANS ENROLLED BY THE LENDER;
AND 3. CONTRIBUTE FUNDS TO THE LOAN RESERVE ACCOUNT
FOR EACH LOAN ENROLLED IN THE CAPITAL ACCESS PROGRAM; AND (II) MAY COMMINGLE IN THE RESERVE ACCOUNT ANY
CONTRIBUTIONS MADE FOR ANY LOANS ENROLLED BY THE LENDER WITH THE
CAPITAL ACCESS PROGRAM. (D) TO BE ELIGIBLE FOR A LOAN TO BE ENROLLED UNDER THE CAPITAL
ACCESS PROGRAM, A BORROWER SHALL: (1) BE A SMALL BUSINESS THAT MEETS THE ELIGIBILITY
REQUIREMENTS SET OUT IN THE CAPITAL ACCESS PROGRAM PARTICIPATION
AGREEMENT BETWEEN THE BORROWER'S LENDER AND THE DEPARTMENT; AND (2) AGREE WITH THE LENDER TO CONTRIBUTE FUNDS TO THE LOAN
RESERVE ACCOUNT ESTABLISHED BY THE LENDER.
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Session Laws, 2000
Volume 797, Page 704   View pdf image
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