Md. Code Regs. 26.03.10.07

Current through Register Vol. 51, No. 22, November 1, 2024

Section 26.03.10.07 - Financial Agreement

A. Approval by the Board of Public Works of financial assistance shall be conditioned upon the execution of a suitable financial agreement between the State and the applicant.

B. The financial agreement required by the Board of Public Works as a a condition of financial assistance shall include terms which:

(1) Provide salvage rights by the State upon default of the applicant;

(2) Require the applicant to maintain accounting records and submit monthly accounting reports to the Department;

(3) Describe the grant, loan, or loan guarantee payment and repayment schedules;

(4) Provide that a project sign will be erected when total State participation in the project exceeds $10,000;

(5) Require the applicant to follow all State environmental control laws and regulations in constructing the project;

(6) Require the applicant to operate and maintain the facility in accordance with Environment Article, Title 7, Subtitle 2 or §9-204, Annotated Code of Maryland;

(7) Provide that the agreement may be voided by the Department if construction has not begun within 6 months of the award of financial assistance and, if voided, shall require the applicant to repay all previously awarded funds with interest;

(8) Require that extra work orders or change orders be approved by the Department before the contractor is authorized to proceed, and upon approval, the applicant may request an amendment to the grant or loan agreements; and

(9) Require the applicant to accept responsibility for costs which exceed 5 percent of the original total award for assistance, unless change orders have been authorized by the Department under §B(8), of this regulation.

C. Financial agreements may also include special conditions or requirements recommended by the Department and approved by the Board of Public Works.

D. The applicant shall follow local bidding requirements. If local bidding requirements do not exist, bidding procedures satisfactory to the Board of Public Works shall be followed.

Md. Code Regs. 26.03.10.07