§ 5-528
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/md/economic-development/5-528A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§5–528.
(a)The Authority may set the terms and conditions for a loan guaranty made under § 5-525(a) of this subtitle.
(1)If the Authority decides to lend money from the Fund to an applicant under § 5-525(c) of this subtitle, the Authority shall prepare loan documents that include:
(i)the interest rate on the loan that equals the market rate for a conventional loan of comparable risk unless the Authority determines that a lower rate better serves the purposes of this subtitle;
(ii)a disbursement schedule that provides enough money to the applicant when the applicant needs it to perform the contract;
(iii)a requirement that the applicant and the Authority co-sign each request for an advance of money before release of the money; and
(iv)provisions for repayment of the loan.
(2)The loan documents may include any other provision that the Authority determines is necessary to secure the loan, including an assignment of or a lien on payment under the contract.