Maryland Department of Business and Economic Development Section 5-1027

      (a)      The Authority may set the terms and conditions for guarantees of loans which it elects to make pursuant to § 5-1022.

      (b)      (1)      If the Authority decides to lend money from the Contract Financing Fund to an applicant, the Authority shall prepare loan documents which shall include:

                  (i)      The rate of interest on the loan, which shall equal the market rate for a conventional loan of comparable risk unless the Authority finds that a lower rate better carries out the purposes of this subtitle;

                  (ii)      A payment schedule that provides money to the applicant in the amounts and at the times that the applicant needs the money to perform the contract;

                  (iii)      A requirement that, before each advance of money is released to the applicant, the applicant and the Authority cosign the request for the money; and

                  (iv)      Provisions for repayment of the loan.

            (2)      The loan documents may include any other provision that the Authority determines is necessary to secure the loan, including, if allowable, an assignment of or a lien on payment under the contract.