Md. Code Regs. 05.13.04.10

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.13.04.10 - Eligible Loans

A. The following types of loans are eligible loans under the Program:

(1) Loans for industrial or commercial purposes;

(2) Loans to refinance loans made for the purposes in §A(1) of this regulation; and

(3) Loans for line of credit agreements established between the lender and the borrower that are used for the purposes in §A(1) of this regulation.

B. Eligible loans shall meet the following criteria:

(1) The lender has not made the loan to enroll in the Program a prior debt that is not covered under the Program and that is or was owed by the borrower to the lender;

(2) The proceeds of the loan will not be used for a project or development devoted to housing, except as provided under Regulation .11C of this chapter;

(3) The proceeds of the loan will not be used to finance passive real estate ownership; and

(4) The proceeds of the loan will not be used for any of the following businesses or uses:

(a) Adult bookstore, adult video shop, or other adult entertainment facility,

(b) Check-cashing facility,

(c) College or university,

(d) Community hall,

(e) Fire station,

(f) Gambling facility,

(g) Hospital,

(h) Liquor store,

(i) Massage parlor,

(j) Multi-family or single-family housing development including the development of rental properties other than mixed use projects permitted under COMAR 05.13.01.06A(10) ,

(k) Nursing home,

(l) Passive real estate ownership,

(m) Pawn or gun shop,

(n) Tanning salon, or

(o) Tattoo parlor.

C. The proceeds of an eligible loan may not be used for the furtherance of sectarian religious instruction, or in connection with the design, acquisition, or construction of any building used or to be used as a place of sectarian religious worship or instruction, or in connection with any program or department of divinity for any religious denomination, including but not limited to religious services, religious instruction, or other activities that have an explicitly religious content.

D. An eligible loan may provide for an interest rate, fees, security, and other terms and conditions agreed to by the lender and the borrower. If the loan amount to be borrowed is determined by a commitment agreement that establishes a line of credit, the amount of the loan is the maximum amount available to the borrower under the agreement.

Md. Code Regs. 05.13.04.10