S.B. 78

VETOES

2. A lien is placed on the real property by the financial
institution or the Authority;

(4)     The loan shall mature in not more than 10 years from the date of
closing of the loan; and

(5)     The rate of interest on the loan is no greater than the rate of interest
determined by the Authority to be the monthly weighted average of the prime lending
rate, plus 2 percent, prevailing from time to time in the City of Baltimore on
unsecured commercial loans.

(b)     A guarantee shall contain such terms and conditions as the Authority may
deem appropriate.

(c)      (1) The Authority may not approve a guarantee pursuant to this section
unless the Authority considers the economic impact of the loan sought to be
guaranteed to be substantial.

(2) To determine the economic impact of a project, the Authority may
consider:

(i)     The amount of the guarantee obligation;

(ii)    The terms of the loan to be guaranteed;

(iii)   The number of new jobs that will be created by the loan; and

(iv)   Any other factor that the Authority considers relevant.

(d)     In addition to the granting of a loan guarantee, the Authority may for the
benefit of an applicant provide an interest subsidy which may be for the life of the
loan, not to exceed 4 percent, to a financial institution issuing a loan guaranteed by
the Authority pursuant to this section which:

(1)     Is payable quarterly;

(2)     Shall not exceed the difference between the rate of interest requested
by the financial institution to make the loan, which rate shall not exceed the rate of
interest determined by the Authority to be the monthly weighted average of the prime
lending rate, plus 2 percent, prevailing from time to time in the City of Baltimore on
unsecured commercial loans, and the discount rate of interest employed by the
Federal Reserve Bank of the United States, the difference to be determined by the
Authority as of the date of closing of the loan for which the guarantee is given; and

(3)     Is payable during the term of the loan, excluding any period in which
the Authority determines that the loan is in default.

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

May 21, 2003

The Honorable Thomas V. Mike Miller, Jr.

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