2013 Maryland Code
ECONOMIC DEVELOPMENT
§ 5-203 - Maryland Economic Adjustment Fund

§5-203.

(a) There is a Maryland Economic Adjustment Fund in the Department.

(b) (1) The Department shall administer the Fund.

(2) The Secretary may:

(i) delegate to any unit in the Department the underwriting, closing, monitoring, and workout functions for Fund loans; or

(ii) contract with another entity to perform these functions.

(c) The Maryland Economic Adjustment Fund is a special, nonlapsing revolving fund that is not subject to reversion under § 7-302 of the State Finance and Procurement Article.

(d) (1) The Fund consists of:

(i) federal money allocated or granted to the Fund, including adjustment implementation grant money designated for the Fund under the Defense Conversion and Defense Economic Adjustment Program of the Economic Development Administration of the United States Department of Commerce;

(ii) private money donated or granted to the Fund;

(iii) money appropriated by the State to the Fund;

(iv) premiums, fees, interest payments, and principal payments on loans made under this subtitle, including a loan financed by the Economic Development Opportunities Program Fund under § 7-314(f) of the State Finance and Procurement Article;

(v) proceeds from the sale, disposition, lease, or rental of collateral relating to loans under this subtitle; and

(vi) any other money made available to the Fund.

(2) This subtitle does not require an appropriation to the Fund from the General Fund of the State, regardless of the availability of other funding sources for the Fund.

(e) (1) The Fund shall be used to:

(i) make loans to new or existing companies with 50 or fewer employees;

(ii) make grants to local or regional governmental or not-for-profit economic development revolving loan funds in the State; and

(iii) pay all expenses and disbursements authorized by the Department for administering the Fund.

(2) A loan to an eligible company under this subtitle may include:

(i) advances of loan proceeds for loans; and

(ii) to the extent allowed by the regulations of the federal Economic Development Administration of the United States Department of Commerce, money for expenses for administrative, legal, actuarial, technical, and other services.

(3) Subject to the restrictions of this subtitle, the Department may make a loan from the Fund to an applicant only if:

(i) the applicant meets the qualifications under this subtitle; and

(ii) the applicant meets any additional requirements imposed by the source of the money to be loaned.

(f) (1) The Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

(2) Any investment earnings of the Fund shall be credited to the Fund.

(3) The Treasurer shall submit a report each year to the Department on:

(i) the status of the money invested under this subtitle;

(ii) the market value of the assets in the Fund on the date of the report; and

(iii) the interest received from investments for the Fund during the reporting period.