§ 5-1806
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/md/economic-development/5-1806A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§5–1806.
(a)The Department shall establish a loan loss reserve account for a lender when a lender enrolls its first loan under the Program.
(b)At the time of enrollment:
(1)the borrower shall make a payment to the account of between 0% and 7% of the enrolled loan amount;
(2)the lender shall make a payment to the account of at least 2% of the enrolled amount; and
(3)the Department shall make a matching payment to the account in an amount equal to the borrower and lender’s aggregate payment under items
(1)and
(2)of this subsection.
(c)The loan loss reserve account of a lender shall be available for the lender to withdraw if a borrower defaults on a qualifying loan.
(d)The Department shall establish procedures for a lender to withdraw from the Program.