ROBERT L. EHRLICH, JR., Governor                             Ch. 304

(iii) For financing the construction or acquisition of buildings and
real estate - 25 years; and

(iv) For financing redevelopment of a qualified brownfields site - a
term approved by the Department or the Authority.

(3)     For loans from the Fund the Department may:

(i) Waive interest during the first 2 years of a loan term; or

(ii) Upon a default by the borrower, impose an interest rate that
exceeds the limits set forth in paragraph (1) of this subsection.

(4)      [Investments] PROCEEDS OF INVESTMENTS from the Fund may be
[made only in conjunction with a loan or a grant from the Fund] EXPENDED ONLY
ON COSTS DESCRIBED IN SUBSECTION (B) OF THIS SECTION.

(d) To be eligible for financial assistance from the Fund, an applicant must be:

(1) An individual, private business, not for profit entity, or local
government which:

(i) Unless the applicant is a local government intending to use the
financial assistance to carry out a project that [does not benefit a particular private
sector entity] THE DEPARTMENT DEEMS TO BE A LOCAL ECONOMIC DEVELOPMENT
PROJECT, must use the requested financial assistance for a project in an eligible
industry sector;

(ii) Intends to use the requested financial assistance for a project
that has a strong potential for expanding or retaining employment opportunities in
the State; and

(iii) Submits to the Department an application containing any
information the Department or the Authority deems necessary in evaluating the
request for financial assistance; or

(2) A local economic development fund that meets the criteria set forth in
§ 5-1407 of this subtitle.

5-1410.

(d) The provisions of this section do not apply to financial assistance to a local
government that uses the financial assistance provided under this subtitle to carry
out a project that [does not benefit a particular private sector entity]—THE
DEPARTMENT DEEMS TO BE A LOCAL ECONOMIC DEVELOPMENT PROJECT.

SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take
effect July 1, 2003.

Approved May 13, 2003.

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