Section 5-206 - Loan - Terms and conditions. - Maryland Statutes

§ 5-206. Loan - Terms and conditions.
 

(a)  In general.- Except as otherwise provided in this subtitle, the Department may set the terms and conditions for loans and grants made under this subtitle. 

(b)  Authority of Department.- The Department shall: 

(1) determine whether to approve loan requests from qualified applicants for loans under this subtitle; 

(2) set the terms and conditions for loans made under this subtitle; and 

(3) determine that the applicant was unable to obtain the financing necessary for the activities on affordable terms through the normal lending channels. 

(c)  Loan from federal source; maximum.- The maximum amount of a loan made with money from the Economic Development Administration of the United States Department of Commerce may not exceed the limit it sets by regulation. 

(d)  Use of proceeds.- The proceeds of a loan may be used for working capital, equipment, furnishings, fixtures, or the construction, rehabilitation, or purchase of real property for the activities that the Department approves. 

(e)  Repayment provisions.- The Department may authorize a flexible repayment schedule for a loan under this subtitle. 
 

[An. Code 1957, art. 83A, §§ 6-504(e), 6-509(a), (c)(3), (e)-(g); 2008, ch. 306, § 2; 2010, ch. 14.]