HARRY HUGHES, Governor

2861

Approved May 19, 1981.

CHAPTER 772

(House Bill 1294)

AN ACT concerning

Maryland Industrial Land Act - Interest Rates

FOR the purpose of clarifying the interest rates that may be
charged on loans made under the Maryland Industrial
Land Act.

BY repealing and reenacting, with amendments,

Article 41 - Governor - Executive and Administrative

Departments
Section 440(c)(2)
Annotated Code of Maryland
(1978 Replacement Volume and 1980 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 41 - Governor - Executive and Administrative

Departments

440.

(c) (2) Each loan agreement shall include:

(i) A provision for payments of interest
only for a 5-year period from the date of the loan;

(ii) A provision for payments of principal
and interest, in accordance with an amortization schedule
that the Secretary approves, for not more than a 40-year
period from the end of the 5-year period;

(iii) A provision for an interest rate
that equals the net interest costs of the:

1.   [most] MOST recent sale of State
general obligation bonds before the date of the loan plus
1/8 of 1 percent FOR A LOAN MADE FROM SOURCES OTHER THAN
STATE GENERAL OBLIGATION BOND PROCEEDS; AND OR

2.  SALE OF STATE GENERAL OBLIGATION
BONDS OUT OF WHICH THE LOAN IS MADE PLUS 1/8 OF 1 PERCENT
FOR A LOAN MADE FROM THE PROCEEDS OF A STATE GENERAL
OBLIGATION BOND ISSUE;