Md. Code Regs. 26.03.10.08

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

Section 26.03.10.08 - Special Requirements

A. A governmental entity receiving financial assistance under this chapter may not award a contract on a cost-plus basis.

B. The following conditions apply to loans approved under this chapter:

(1) Loans shall bear the same rate of interest as the bonds from which the proceeds are used to provide the loan. Costs associated with the sale of bonds may be included in the repayment schedule as required by the Board of Public Works;

(2) The loan shall be repaid within 30 years and the first payment shall be made at a time stipulated by the Board of Public Works.

C. A loan guarantee of the principal of, or interest on, any commercial loan or obligation to finance an eligible project may be made only if the:

(1) Applicant certifies that it is unable to obtain sufficient credit on reasonable terms to finance its actual needs without a guarantee; and

(2) Board of Public Works determines that there is a reasonable assurance of repayment of the loan obligation.

D. Financial assistance provided under this chapter may not be applied to projects whose construction was initiated before approval by the Board of Public Works.

Md. Code Regs. 26.03.10.08