2013 Maryland Code
ECONOMIC DEVELOPMENT
§ 5-431 - Authorized purpose obligation insurance
§5-431.
(a) 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) 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) 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) 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) The Authority shall find that the Authority will not be required, except on default, to operate, service, or maintain any business.
(f) The authorized purpose obligations shall be secured in a manner that the Authority approves.
(g) Financial assistance from the Fund provided under this section may not exceed an aggregate amount of $2,500,000 for a single transaction.
(h) 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.
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