Maryland Department of Business and Economic Development Section 6-509

      (a)      Except as provided in this subtitle, the Department may set the terms and conditions for loans and grants.

      (b)      If the Department decides to lend money to an applicant, the Department shall prepare loan documents.

      (c)      The loan documents shall include:

            (1)      The rate of interest on the loan;

            (2)      The amount of the loan;

            (3)      Provisions for repayment of the loan, provided that the provisions for repayment may, in the Committee's discretion, be based on a flexible repayment schedule; and

            (4)      Any other provisions that the Department determines are necessary, including the taking of liens and security interests in real and personal property.

      (d)      (1)      Mortgages or deeds of trust held as security for loans made under this subsection that are in default may be foreclosed by the Department in the same manner as provided by the Maryland Rules for foreclosures in private transactions.

            (2)      The Department may take title in its name to any property foreclosed and convey title to the property to bona fide purchasers of the property.

      (e)      The maximum amount of a loan made with Economic Development Administration funds may not exceed the limit set by the regulations of the Economic Development Administration.

      (f)      The minimum interest rate for a loan shall be a fixed rate of 4 percent per annum.

      (g)      The proceeds of loans may be used for working capital, equipment, furnishings, fixtures, and the construction, rehabilitation, or purchase of real property for the activities approved by the Committee.