Section 5-431 - Authorized purpose obligation insurance. - Maryland Statutes

§ 5-431. Authorized purpose obligation 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 authorized purpose obligations; 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 transaction will not result in: 

(i) the removal from one county to another county of the business operations of any person who benefits from the transaction; or 

(ii) the abandonment of the business operations in the State of any person who benefits from the transaction; or 

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

(i) discourage the business from leaving the State; or 

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

(d)  Retail establishment.- Financial assistance under this section may only be used in connection with a retail establishment if the Authority determines, in its sole discretion, that the financial assistance will accomplish the purposes of this subtitle. 

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

(f)  Security.- The authorized purpose obligations shall be secured in a manner that the Authority approves. 

(g)  Amount of financial assistance.- Financial assistance from the Fund provided under this section may not exceed an aggregate amount of $2,500,000 for a single transaction. 

(h)  Insurance of authorized purpose obligations.- The aggregate amount of insurance provided under this section for a single authorized purpose obligation may not exceed: 

(1) for an export-related financing transaction, 90% of the total of the principal of, redemption or prepayment premiums or penalties on, and interest on, the authorized purpose obligation; or 

(2) for a transaction other than an export-related financing transaction, 80% of the total of the principal of, redemption or prepayment premiums or penalties on, and interest on, the authorized purpose obligation. 
 

[An. Code 1957, art. 83A, §§ 5-901(dd), 5-919(a)-(g), (i); 2008, ch. 306, § 2.]