Section 9-278 - Financial assistance. - Maryland Statutes

§ 9-278. Financial assistance.
 

(a)  Conditions.- To the extent not inconsistent with this subtitle, a grant, or loan, or loan guarantee agreement shall contain those conditions that the Secretary requires by regulation and that the Board of Public Works requires on a specific application for financial assistance in order to achieve the goals of this subtitle and to otherwise protect the interests of the State. 

(b)  Interest.- A State loan extended under this subtitle: 

(1) Shall bear at least the same rate of interest as the most recent State general obligation bond sale preceding the date of approval by the Board of Public Works; and 

(2) Shall be repaid within 30 years. 

(c)  Loan guarantee.- A loan guarantee of the principal of or interest on any commercial loan or obligation to finance the eligible cost of a project under this subtitle may only be made if: 

(1) The applicant certifies that the applicant is unable to obtain on reasonable terms sufficient credit to finance its actual needs without the guarantee; and 

(2) The Board of Public Works determines that there is a reasonable assurance of repayment of the loan obligation. 

(d)  Includible costs.- The eligible cost of a project for State financial assistance under § 9-275(b)(3) of this subtitle may include only the costs of plans, specifications, equipment, construction, and rehabilitation or improvement as approved by the Department. 

(e)  Limitation.- State financial assistance under § 9-275(b)(3) of this subtitle may not exceed 50 percent of the eligible costs. 
 

[1989, ch. 667; 1993, ch. 5, § 1; 2000, ch. 61, § 6; 2009, ch. 60, § 5.]