Section 5-430 - Bond-related insurance. - Maryland Statutes

§ 5-430. Bond-related insurance.
 

(a)  In general.- If the requirements of this section are satisfied, and subject to § 5-432 of this subtitle, the Authority may use the Fund to: 

(1) insure the payment of any of the principal of, redemption or prepayment premiums or penalties on, and interest on: 

(i) bonds; and 

(ii) any instrument executed, obtained, or delivered in connection with the issuance and sale of bonds; and 

(2) pay or insure the payment of fees or premiums for insurance, guarantees, or other credit support in connection with financial assistance under this subtitle. 

(b)  Economic impact.- Based on factors it considers relevant, the Authority shall determine, in its sole discretion, that the economic impact of the transaction will be substantial. 

(c)  Removal or abandonment of facilities.- The Authority shall find: 

(1) that the acquisition or improvement of a facility will not result in: 

(i) the removal from one county to another county of the business operations of the facility user; or 

(ii) the abandonment of a facility in the State; or 

(2) if the acquisition or improvement will result in removal or abandonment, that the acquisition or improvement will: 

(i) discourage the facility user from leaving the State; or 

(ii) preserve the competitive position of the facility user in its industry. 

(d)  Operation by Authority.- The Authority shall find that the Authority will not be required, except on default, to operate, service, or maintain the facility. 

(e)  Security.- The bonds or instruments shall be secured in a manner that the Authority approves. 

(f)  Amount of financial assistance.- Financial assistance from the Fund provided under this section may not exceed an aggregate amount of $7,500,000 for a single facility. 
 

[An. Code 1957, art. 83A, §§ 5-916, 5-917(a)-(f); 2008, ch. 306, § 2.]