1994

LAWS OF MARYLAND

Ch. 494

(2)  The [mortgage shall have] LOAN DOCUMENTS
SHALL PROVIDE FOR a maturity date or dates that are
satisfactory to the Authority and meet the requirements of
this subsection.

(3)  The maturity date of any part of the
[mortgage] loan that relates to real property may not be
later than the earlier of:

(i) If a public body is [mortgagor] THE
BORROWER, the end of the initial term of any lease of the
[mortgaged property] INDUSTRIAL PROJECT from the [mortgagor]
BORROWER; or

(ii) 25 years after the date when any
[mortgage] LOAN insurance first is provided.

(4)  The maturity date of any part of the
[mortgage] loan that relates to machinery or equipment may
not be later than the earlier of:

(i) 15 years after the date when any
[mortgage] LOAN insurance first is provided; or

(ii) The end of the normal useful life of
the machinery or equipment.

[(5) This subsection does not prevent a
mortgagor from prepaying the mortgage loan at any time.]

(e)  The [mortgage] LOAN DOCUMENTS shall provide that
all of the proceeds from the sale of any property that is
released from [the mortgage] ANY lien OR SECURITY INTEREST
shall be applied to the outstanding balance [secured by the
mortgage] OF THE LOAN.

(f)  If the [mortgage] LOAN is a construction
[mortgage] LOAN, the [mortgagor] BORROWER shall have a
commitment satisfactory to the Authority for permanent
financing of the industrial project, either by the same or
another lender.

[(g) (1) Except as otherwise provided in this
subsection, the mortgage shall be a first lien mortgage.

(2) If the industrial project is a project
described in § 13-101(g)(1)(iv), (v), or (vi) of this
subtitle:

(i) In addition to meeting any other
eligibility requirements and underwriting considerations,
the mortgage lien shall extend to fixed assets that the
Authority finds will afford adequate security for its
insuring risk; and

(ii) The mortgage may be a second lien
mortgage.]