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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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ECONOMIC DEVELOPMENT |
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DIVISION I. DEPARTMENT OF BUSINESS AND ECONOMIC DEVELOPMENT |
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TITLE 5. ECONOMIC DEVELOPMENT AND FINANCIAL ASSISTANCE PROGRAMS |
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SUBTITLE 4. MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY |
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PART III. INDUSTRIAL DEVELOPMENT FUND |
§ 5-431. Authorized purpose obligation insurance
Latest version.
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(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.