Title 10. Statewide Development Resources and Revenue Authorities — Subtitle 5. Maryland Agricultural and Resource-Based Industry Development Corporation

land acquisition or improvement;

agricultural, aquacultural, equine, horticultural, or silvicultural production;

soil conservation;

pond construction;

irrigation;

water well drilling;

improvement of a structure or facility;

purchase of a farm fixture, livestock, or poultry;

fish, crustaceans, or mollusks of any kind;

seeds, plants, or trees;

fertilizer;

pesticide;

feed;

equipment; or

containers or supplies employed in the production, cultivation, harvesting, processing, storage, marketing, distribution, or export of an agricultural product.

a farm product;

livestock or a livestock product;

poultry or a poultry product;

milk or a dairy product;

timber or a forest product;

fruit or a horticultural product; and

seafood or an aquacultural product.

“Bond” means a bond of the Corporation issued under this subtitle.

“Bond” includes:

“Lender” means a financial institution authorized to do business in the State or operating under the supervision of a federal unit.

“Lender” includes:

“Person” has the meaning stated in § 9-101 of this article.

“Person” also includes a unit of a state or of the federal government.

“Project” means any property, the acquisition or improvement of which the Board, in its sole discretion, determines by resolution will accomplish at least one of the purposes listed in § 10-502 of this subtitle, whether or not the property, or any interest in the property:

“Project” includes:

“Revenue” means the income, revenue, and other money received by the Corporation from or in connection with a project and all other income of the Corporation.

“Revenue” includes grants, rentals, rates, fees, and charges for the use of the services furnished or available.

the State’s agricultural and resource-based industries continue to underpin the local economies of rural communities, but are increasingly under threat from national and international market competition, urban encroachment and land development pressure, and environmental and regulatory influences;

the construction and renovation of food and fiber processing and secondary manufacturing facilities often require credit and capital in amounts that far exceed the available resources of individual small producers and small businesses;

private enterprise and existing federal and State governmental programs have not adequately addressed agricultural industry support or developmental opportunities relating to emergent value-added agricultural processing activities, development of new or alternative markets, primary and secondary manufacturing, assistance for beginning farmers and producers, and financial support for environmental or technological enhancements;

while some traditional agricultural enterprises in the State may have access to markets, capital, and credit, other existing or emerging segments of the agricultural industry lack market access, capital, and credit available for investment in agriculture, for domestic and export purposes, and at interest rates within the financial means of persons engaged in agricultural production and agricultural exports;

in conjunction with the financial and other challenges associated with traditional agricultural industries, there is a need to provide economic and market development assistance to those individuals who wish to start, convert, or diversify their agricultural operations, or to make improvements associated with environmental regulations and potential market opportunities; and

it is a matter of significant importance to rural economic development that the Corporation be created and authorized to:

assist the viability of the State’s diverse agricultural industry through development of new markets, capital and credit enhancements, and technical and other assistance to support, create, and sustain agricultural businesses throughout the State;

provide financing and other assistance for product development, start–up and scale–up of food–related and fiber–related growing and processing operations in the State, and for technological enhancements that benefit the environment and water quality;

seek partnerships and leveraging opportunities with public and private for–profit and nonprofit entities in making capital and credit assistance available to individual producers, producer cooperatives, and other agribusiness concerns operating in the State;

facilitate and support access to high quality technical resources for agricultural entrepreneurs by incorporating existing support infrastructure including the development of strategic partnering opportunities and business incubation;

foster cross–industry communication and assist other organizations in transferring to the private sector and commercializing the results and products of scientific agricultural research and development conducted by the federal government and colleges and universities; and

work with public and private lending and grant–making institutions to:

There is a Board of Directors of the Corporation.

The Board manages the Corporation and exercises all of its corporate powers.

as ex officio members:

eleven individuals appointed by the Governor with the advice and consent of the Senate as follows:

The term of a member appointed under subsection (b)(2) of this section is 4 years.

The terms of the appointed members are staggered as required by the terms provided for the members on October 1, 2008.

At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies.

A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.

serves without compensation as a member of the Board; but

is entitled to reimbursement for expenses under the Standard State Travel Regulations as provided in the State budget.

Title 10 and Division II of the State Finance and Procurement Article;

laws governing the State Personnel Management System under Division I of the State Personnel and Pensions Article; and

§§ 19–205 and 19–206 of the Local Government Article (Conditions upon Sale of Public Securities).

The Corporation is subject to:

For purposes of the Open Meetings Act, a project site visit or educational field tour may not be considered a meeting of the Corporation if no organizational business is conducted.

borrow money and issue bonds;

purchase, discount, sell, negotiate and guarantee, insure, co–insure, and reinsure negotiable instruments, bills of exchange, acceptances, bankers’ acceptances, cable transfers, letters of credit, and other evidences of indebtedness; and

provide for the rights of lenders and bondholders;

loss in connection with its property or operations, including insurance, reinsurance, or other guarantees from any federal or State unit or private insurance company for the payment of bonds issued by the Corporation, or bonds, notes, or any other obligations issued or made by any lender or other person; or

loss with respect to agricultural loans, mortgages or mortgage loans, or any other type of loans, including the power to pay premiums on the insurance or reinsurance;

insure, co–insure, or reinsure agricultural loans, mortgage loans or mortgages, or any other type of loans;

pay or receive premiums on the insurance, co–insurance, or reinsurance;

establish reserves for losses; and

participate in the insurance, co–insurance, or reinsurance of agricultural loans, mortgage loans or mortgages, or any other type of loans with the federal or State government or any private insurance company;

renegotiate, refinance, or foreclose on a mortgage, security interest, or lien;

commence an action to protect or enforce any right or benefit conferred on the Corporation by any law or agreement;

consent to modification of an interest rate, time, payment, security, or other term or condition of an agreement to which the Corporation is a party or beneficiary;

bid for and purchase property at any foreclosure or at any other sale, or otherwise acquire or take possession of any property; and

in connection with an acquisition under item (iv) of this item, complete, administer, pay the principal of and interest on any obligation incurred in connection with the property, dispose of, and otherwise deal with the property in any manner necessary or desirable to protect the interest of the Corporation or its bondholders in the property.

to finance all or part of the costs of a project; and

for any other lawful purpose of the Corporation authorized in this subtitle.

the date of the bonds;

the interest rates of the bonds;

the maturity date of the bonds, which may not exceed 40 years from the date of issue;

the prices, terms, and conditions of sale of the bonds;

the form of the bonds;

the manner of executing the bonds;

the denominations of the bonds; and

the places of payment of principal of and interest on the bonds, at a bank or trust company in or outside the State.

The bonds are negotiable instruments under the laws of the State.

Bonds may be registrable.

The Corporation may sell the bonds by competitive or negotiated sale in a manner and for a price that the Corporation determines.

The bonds are exempt from §§ 8-206 and 8-208 of the State Finance and Procurement Article.

This section does not prevent the Corporation from pledging its full faith and credit to the payment of a bond.

This section does not limit the ability of the State or a political subdivision to impose an assessment, rate, fee, or charge to pay to the Corporation any cost, including the principal of and interest on a bond, under an agreement between the Corporation and the State or political subdivision.

A bond:

The issuance of a bond is not directly, indirectly, or contingently a moral or other obligation of the State or a political subdivision to levy or pledge any tax or to make an appropriation to pay the bond.

Each bond shall state on its face that:

The Corporation may secure a bond by a trust agreement between the Corporation and a corporate trustee.

A corporate trustee may be any trust company or bank that has the powers of a trust company in or outside the State.

A corporation or trust company incorporated in the State may:

state the rights and remedies of bondholders and any trustee;

contain provisions to protect and enforce the rights and remedies of bondholders;

contain covenants stating the duties of the Corporation as to the custody, safeguarding, and application of money;

restrict the individual right of action of bondholders;

provide for the payment of the bond proceeds and revenues to an officer, board, or depository that the Corporation determines with the safeguards and restrictions that the Corporation determines; and

provide for the method of disbursement of the bond proceeds and revenues, with the safeguards and restrictions that the Corporation determines.

Except as provided in paragraph (2) of this subsection, the Corporation shall determine the investment of bond proceeds.

If the Corporation loans the proceeds of the bonds to a person as provided in § 10-519 of this subtitle, the loan recipient shall determine the investment of bond proceeds.

to the payment of any cost; or

in any other lawful manner.

The Corporation may issue bonds to refund any outstanding bonds, including paying:

Refunding bonds may be issued for any corporate purpose, including:

The Corporation may issue refunding bonds in one or more series in an amount greater than the amount of the bonds to be refunded.

applied to the purchase, retirement at maturity, or redemption of outstanding bonds on a date the Corporation determines; and

pending application under item (1) of this subsection, placed in escrow.

The Corporation may invest escrowed refunding bond proceeds in investments and other obligations, maturing on appropriate dates to assure the prompt payment of the principal of, interest on, and any redemption premium on the bonds to be refunded.

The earnings and any profits on investments or other obligations may be applied to the payment of the outstanding bonds to be refunded.

After the terms of the escrow have been fully satisfied, the balance of the proceeds and earnings and profits on investments or other obligations may be returned to the Corporation or the loan recipient for use in any lawful manner.

any of its revenues;

any of its rights to receive revenues;

money and securities in accounts established to secure a bond; and

a lien or security interest granted or assignment made to the Corporation.

is valid and binding against any person having a claim against the Corporation, in contract, tort, or otherwise, regardless of whether the person has notice of the pledge or assignment; and

has priority over the claim.

shall be filed in the records of the Corporation; but

need not be filed or recorded elsewhere.

lend or otherwise make available the proceeds of its bonds to a person to finance costs of a project; and

enter into a financing agreement, mortgage, or other instrument that it determines is necessary or desirable to evidence or secure the loan.

A lease for a project may require or authorize the lessee or another person to purchase or otherwise acquire the project for consideration, that the Corporation establishes, on:

Consideration required under paragraph (1) of this subsection may be nominal.

In this section the following words have the meanings indicated.

“Eligible seafood processing project” means a project to establish or expand the business of a licensed seafood dealer that:

“Licensed seafood dealer” means a person licensed under § 4–701 of the Natural Resources Article to buy, process, pack, resell, market or otherwise deal in fish caught in the tidal waters of the State.

“Repletion” means enhancing areas where commercial harvest is permitted.

“Seasonal full–time job” means a position for which an individual is required to work a minimum of 420 hours during 12 weeks of a 3–month period.

Financing provided under this section shall be conditioned on the agreement by the recipient to comply with the provisions of § 4–1019.2 of the Natural Resources Article until the loan is repaid.

The Corporation shall forgive any loan provided under this section as follows:

has paid all applicable business taxes and fees for the past 5 years;

demonstrates to the satisfaction of the Corporation through a business plan and pro forma financial projections that, within 5 years after receiving financing under this section, the person’s seafood processing business will have the potential to achieve viability as a business;

meets any other eligibility requirements established by the Corporation; and

agrees to the financing terms and conditions established by the Corporation that are otherwise in conformance with this section.

For fiscal year 2024, the Governor shall include in the annual budget bill an appropriation of $1,000,000 to the Corporation for the purpose of providing loans under this section.

The appropriation in paragraph (1) of this subsection shall be distributed to a special account to be used only to:

The Corporation may purchase and sell agricultural loans made by lenders, at the prices and on the terms and conditions that it determines.

A lender may purchase and sell agricultural loans to the Corporation in accordance with this section.

The Corporation may make loans to and deposits with lenders at interest rates, terms, and conditions that it determines.

A lender may borrow funds and accept deposits from the Corporation in accordance with this subtitle and the bylaws of the Corporation.

The Corporation shall require that all proceeds of its loans to or deposits with lenders, or an equivalent amount, shall be used by the lenders to make agricultural loans, subject to terms and conditions that the Corporation determines.

The Corporation may insure and reinsure agricultural loans made by lenders, subject to the terms, security provisions, and reserve requirements determined by the Corporation in accordance with the bylaws of the Corporation.

Unless otherwise determined by the Corporation, agricultural loans shall be insured to the amount of 100% of the unpaid principal of and interest on each agricultural loan.

provide for the administration, application, and repayment of the agricultural loan; and

establish the conditions for payment of insurance by the Corporation, and the servicing, suit on, or foreclosure of the agricultural loan.

The aggregate value of all agricultural loans insured by the Corporation and outstanding at any one time may not exceed 20 times the total value of money, investments, properties, and other assets of the Corporation.

Notwithstanding paragraph (1) of this subsection, the aggregate value of agricultural loans insured and outstanding may be further expanded by use of federal, State, or private loan insurance, reinsurance, or guarantees of which the Corporation is or shall become the beneficiary.

Each unit in the Executive Branch of State government and each institution of higher education in the State may work with the Corporation on matters relating to the unit.

Each political subdivision and regional planning and development council in the State may work with the Corporation on matters relating to the political subdivision or entity.

the Department;

the Department of Agriculture;

the Department of Natural Resources;

the Maryland Economic Development Corporation;

the Maryland Food Center Authority;

the Maryland Technology Development Corporation;

the Rural Maryland Council; and

the Maryland Cooperative Extension Service.

The Corporation may receive annual funding through an appropriation in the State budget.

The Corporation may also receive money for projects included in the budgets of State units.

The funds appropriated to the Corporation under subsection (a)(3)(i)2 of this section shall be used to support the Corporation’s rural business loan programs and small matching grant programs.

All unexpended and unencumbered money appropriated to the Corporation shall remain with the Corporation for future use.

In this section the following words have the meanings indicated.

“Beginner waterman” means an individual who:

“Generational waterman” means an individual who:

“Program” means the Maryland Watermen’s Microloan Program.

“Qualified commercial fisherman” includes:

boats;

mechanical equipment;

fishing gear;

fishing quota; and

any other item used in commercial seafood harvesting.

Through June 30, 2025, only generational watermen are eligible to receive a loan under the Program.

Starting July 1, 2025, the following persons are eligible to receive a loan under the Program:

For loans made under the Program, the Corporation shall determine:

A borrower under the Program may not have more than one outstanding loan from the Program during any period of time.

For each of fiscal years 2024 through 2025, the Governor shall include in the annual State budget bill an appropriation of $500,000 to the Program.

The appropriation in paragraph (1) of this subsection shall be distributed to a special fund, to be used only to:

money appropriated in the State budget to the Fund;

loan principal repayments related to the financial assistance under this section;

money made available from the federal, State, or local government; and

any other money from any other source accepted for the benefit of the Fund.

financial assistance, including loans; and

the costs of the Corporation to administer this section.

the application and award process;

eligibility criteria;

the amount of the financial assistance, including loans, for each applicant;

the terms and conditions of financial assistance, including loans;

the amount of loan forgiveness that the Corporation may provide for loan repayment performance; and

any other provisions necessary to carry out this section.

If a borrower who holds a tidal fish license under § 4–701 of the Natural Resources Article is delinquent in the repayment of a loan under this subtitle, the Corporation shall notify the Department of Natural Resources.

If a borrower under paragraph (1) of this subsection becomes compliant with the repayment of a loan under this subtitle, the Corporation shall notify the Department of Natural Resources.