§ 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.

HISTORY: 1989, ch. 667; 1993, ch. 5, § 1; 2000, ch. 61, § 6; 2009, ch. 60, § 5.