In this subtitle the following words have the meanings indicated.
“Authority” means the Maryland Industrial Development Financing Authority.
“Authorized purpose obligation” means an evidence of obligation issued, offered for sale, or delivered by any person or public body for any purpose that the Authority determines will accomplish the purposes of this subtitle.
“Authorized purpose obligation” includes:
a bond;
a note;
a certificate; and
any other evidence of obligation.
“Bond” means a bond or note that is issued and sold by a public body, unit, or instrumentality of the State to finance a facility or refund an outstanding bond.
“Bond” includes:
a bond anticipation note;
a note in the nature of commercial paper or other instrument;
a certificate;
a bond issued under this subtitle or Title 12, Subtitle 1 of this article (Maryland Economic Development Revenue Bond Act); and
any other evidence of obligation.
“Cogeneration” means the combined generation by a facility of:
electrical or mechanical power; and
energy used for industrial, commercial, heating or cooling purposes, including:
steam;
heat; and
other forms of energy.
“Commercial building” means a building that:
is used primarily to carry on a for–profit or nonprofit business;
is not residential; and
is not used primarily to manufacture or produce raw materials, products, or agricultural commodities.
“Energy audit” means:
an energy audit performed for the purposes of Title VII of the Energy Policy and Conservation Act, 42 U.S.C. §§ 6201 through 6422; or
an onsite inspection of a commercial building, an industrial building, or an industrial process to determine and provide information on:
the type, quantity, and rate of energy consumption of the building or process;
maintenance and operation procedures that might reduce the energy consumption of the building or process; and
the cost of implementing an appropriate energy conservation project, a solar energy project, or both, and the savings in energy costs likely to result from the project.
“Energy conservation project” means a project that qualifies under § 5-447 of this subtitle.
“Energy project” means a project that qualifies under § 5-445 of this subtitle.
“Energy project” includes:
an energy conservation project; and
a solar energy project.
“Export-related financing transaction” means financing provided to a manufacturer of goods in the State, or a seller of goods or services in the State, if the goods or services are intended for sale to a foreign entity.
“Facility” has the meaning stated in § 12-101 of this article.
“Facility” includes an energy project.
“Facility applicant” has the meaning stated in § 12-101 of this article.
“Facility user” has the meaning stated in § 12-101 of this article.
“Finance” includes refinance.
“Foreign entity” means:
a person located outside the United States; or
a governmental unit of a country other than the United States.
“Fund” means the Industrial Development Fund established under § 5-423 of this subtitle.
“Improve” means to construct, reconstruct, equip, expand, extend, improve, install, rehabilitate, or remodel.
“Improvement” means construction, addition, alteration, equipping, expansion, extension, improvement, installation, reconstruction, rehabilitation, remodeling, or repair.
“Industrial building” means a building that:
is used primarily to carry on a for–profit or nonprofit business;
is used primarily for an industrial process; and
controls energy usage within its exterior envelope but does not have a peak design rate of energy usage of less than:
5 B.T.U. per hour per square foot; or
1 watt per square foot of floor area.
“Industrial building” does not include a commercial building or a residential building.
“Industrial process” means:
a process used to produce or manufacture goods or products; or
the storage or shipment of materials, goods, or products.
“Public body” has the meaning stated in § 12-101 of this article.
“Public port” has the meaning stated in § 12-101 of this article.
“Retail establishment” means an establishment that sells goods or services to the ultimate user or consumer for personal use rather than business use.
“Solar energy project” means a project that qualifies under § 5-448 of this subtitle.
This subtitle shall be liberally construed to accomplish its purposes.
The General Assembly finds that:
unemployment conditions exist in many areas of the State;
the acquisition and improvement of facilities are essential to relieve this unemployment and establish a balanced economy in the State;
the health, safety, welfare, and right of gainful employment of residents throughout the State will be promoted by the acquisition and improvement of facilities;
the control or abatement of environmental pollution in the State, including noise pollution, is necessary to:
protect the health, safety, and welfare of the residents of the State;
protect natural resources;
retain and attract industry and commercial enterprises; and
promote economic development;
public ports in the State are valuable assets and any improvements to these ports that increase the import and export of waterborne commerce will directly benefit residents throughout the State;
businesses need greater access to capital markets; and
the availability of financial assistance under this subtitle will promote the economic development of the State.
The purposes of this subtitle are to:
relieve unemployment in the State;
encourage the increase of industry and commerce and a balanced economy in the State;
help retain and attract industry and commerce through measures including:
port development;
the control, reduction, or abatement of environmental pollution; and
the utilization and disposal of wastes;
promote economic development;
protect natural resources and encourage resource recovery;
encourage the creation and expansion of day care facilities in the State; and
promote the health, safety, and welfare of residents throughout the State.
The Authority shall:
work to increase the utilization of the programs and funds established under the Authority to assist minority and women–owned businesses in the State; and
consider incentives to encourage the use of the Authority’s credit insurance services.
Subject to paragraph (2) of this subsection, the Authority shall develop and implement a marketing plan to increase awareness of the Authority’s credit insurance services.
The marketing plan implemented under paragraph (1) of this subsection shall identify methods to increase the utilization of the Authority’s credit insurance services by community banks and other financial institutions that make loans to historically disadvantaged businesses and businesses in rural areas of the State.
There is a Maryland Industrial Development Financing Authority in the Department.
The Authority is a body politic and corporate and is an instrumentality of the State.
The exercise by the Authority of power under this subtitle is the performance of an essential governmental function.
The Authority consists of the following nine members:
seven members appointed by the Governor with the advice and consent of the Senate; and
as ex officio members:
the Secretary; and
the Treasurer or the Comptroller, as the Governor designates.
An ex officio member may designate a representative to serve on the Authority.
The appointed members shall:
have substantial experience in business or economic development; and
reflect the geographic, racial, ethnic, and gender makeup of the State.
The term of an appointed member is 5 years.
The terms of the appointed members are staggered as required by the terms provided for members of the Authority 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.
The Governor may remove an appointed member with or without cause.
The members of the Authority are also the members of the Maryland Economic Development Assistance Authority under § 5-306 of this title.
The members of the Authority may act concurrently in their capacities as members of the Authority and of the Maryland Economic Development Assistance Authority.
The members of the Authority shall carry out the powers and duties of the Authority under this subtitle whether acting:
concurrently as members of the Authority and the Maryland Economic Development Assistance Authority; or
as members of either authority alone.
From among its members, the Authority shall elect a chair and a vice chair.
The Executive Director serves as secretary of the Authority.
The Authority shall determine the manner of election of officers and their terms of office.
Five members of the Authority are a quorum.
An affirmative vote of at least four members is needed for the Authority to act.
The Authority shall determine the times and places of its meetings.
A member of the Authority:
is not entitled to compensation as a member of the Authority; but
is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
With the approval of the Secretary, the Authority shall appoint an Executive Director.
The Executive Director serves at the pleasure of the Authority, with the concurrence of the Secretary.
The position of Executive Director is a special appointment under the State Personnel and Management System.
The Executive Director is the chief administrative officer of the Authority.
The Executive Director shall:
direct and supervise the administrative affairs and technical activities of the Authority;
attend the meetings of the Authority;
record the minutes of the proceedings of the Authority;
approve all accounts for salaries, per diem payments, and allowable expenses of the Authority, its employees, and its consultants;
approve all expenses incidental to the operation of the Authority;
in cooperation with the Department, submit to the Authority reports and recommendations related to proposed financial assistance under this subtitle; and
perform the other duties that the Secretary or the Authority requires to carry out this subtitle.
The Executive Director is the resident agent of the Authority for the receipt of service made in accordance with the Maryland Rules.
The Authority may employ a staff in accordance with the State budget.
The Authority shall appoint and remove all personnel in accordance with the State Personnel and Pensions Article.
The Authority may:
adopt bylaws for the conduct of its business;
adopt a seal;
maintain offices in the State;
sue and be sued in its own name;
retain consultants;
use the services of other governmental agencies;
in accordance with the purposes of this subtitle, contract for and accept a loan or grant from the federal government or the State, a local government, or any of their units or instrumentalities;
acquire, improve, manage, operate, dispose of, or otherwise deal with property, take assignments of rentals and leases, and make contracts, leases, agreements, and arrangements that are necessary or incidental to the performance of the Authority’s duties, on the terms and conditions that it may consider advisable;
acquire or receive assignment of a document executed, obtained, or delivered in connection with financial assistance under this subtitle;
subject to any outstanding agreement the Authority makes under this subtitle, make a covenant or other agreement regarding the Authority’s insurance funds, establish within them accounts to carry out this subtitle, and allocate revenue and receipts among the accounts;
fix, charge, and collect a premium, fee, cost, or other expense related to financial assistance under this subtitle, including an application fee, commitment fee, program fee, finance charge, and publication fee;
authorize the chair, vice chair, or Executive Director to perform, on behalf of the Authority, a duty or prescribe, specify, determine, or approve a detail, document, procedure, or a matter that the Authority, in its sole discretion, determines appropriate to carry out this subtitle; and
do all things necessary or convenient to carry out the powers granted by this subtitle.
The Authority shall:
keep records of its funds and accounts; and
ensure that its funds and accounts are audited annually.
In its internal functions, the Authority shall purchase office space, supplies, facilities, materials, equipment, and professional services in accordance with the State Finance and Procurement Article.
The Authority exercises its powers and performs its duties subject to the authority of the Secretary.
The Authority may adopt regulations to carry out this subtitle.
The Authority may approve, or may authorize the Executive Director to approve, the form of an agreement by the Authority under this subtitle.
Any money that the Authority pays under an agreement the Authority makes under this subtitle shall be payable as and when the Authority determines in its sole discretion.
A finding by the Authority, including a finding as to the public purpose of an action taken under this subtitle, and the appropriateness of that action to serve the public purpose, is conclusive in a proceeding involving the validity or enforceability of:
an agreement the Authority enters into under this subtitle;
a bond; or
any security relating to item (1) or (2) of this section.
Even though a determination of the Authority about financial assistance is subject to the Maryland Public Ethics Law, the existence of a conflict of interest or a violation of the Maryland Public Ethics Law does not affect:
the validity of a finding or determination made under this subtitle;
the enforceability of an agreement that the Authority makes under this subtitle; or
the validity or enforceability of a bond that the Authority issues.
A member of the Authority, a person executing a bond or agreement of the Authority under this subtitle, or an employee of the Authority, the Department, or the State is not:
personally liable on a bond or agreement of the Authority; or
subject to personal liability or accountability arising from the issuance, execution, or delivery of a bond or agreement of the Authority.
In accordance with § 2.5–109 of this article, the Authority shall submit a report on its condition and operations.
If the Authority dissolves, title to its property vests in the State.
There is an Industrial Development Fund.
The Fund shall be used:
for the purposes described in Part VI and §§ 5–430, 5–431, and 5–438 of this subtitle; and
to pay expenses of the Authority, including expenses:
for administrative, legal, actuarial, and other services;
related to:
issuance or insurance of bonds and authorized purpose obligations; and
funding of reserves; and
of providing other financial assistance under this subtitle.
The Fund is a continuing, nonlapsing fund that is not subject to reversion under § 7-302 of the State Finance and Procurement Article.
The Fund consists of:
money appropriated in the State budget to the Fund;
premiums, fees, and any other money received by the Authority with respect to financial assistance provided by the Authority from the Fund;
proceeds from the sale, lease, or other disposition of property of the Authority;
interest received from linked deposits made from the Linked Deposit Program under Part VI of this subtitle; and
any other money made available under this subtitle.
The Treasurer shall:
invest the money in the Fund in the same manner as other State money may be invested; and
credit any investment earnings to the Fund.
Any net investment earnings of the Fund, beyond those necessary to further the purposes of this subtitle, may not benefit a person other than the State.
The Authority shall send a written request to the Board of Public Works for additional money if:
the Authority and the Secretary find that more money is needed to keep the reserves of the Fund at an adequate level; and
the Secretary consents to the request.
The Board of Public Works may disburse the requested amount from the General Emergency Fund.
With the consent of the Secretary, the Authority may pay to the Treasurer, to the credit of the General Fund, money that the Authority determines exceeds the amount necessary to meet:
the obligations of the Authority under this subtitle; and
the requirements of this subtitle.
Each year the Treasurer shall report to the Authority on the:
status of the Fund;
market value of the assets in the Fund as of the date of the report; and
earnings from investments of the Fund during the period covered by the report.
If the requirements of this section are satisfied, and subject to § 5-432 of this subtitle, the Authority may use the Fund to:
insure the payment of any of the principal of, redemption or prepayment premiums or penalties on, and interest on:
bonds; and
any instrument executed, obtained, or delivered in connection with the issuance and sale of bonds; and
pay or insure the payment of fees or premiums for insurance, guarantees, or other credit support in connection with financial assistance under this subtitle.
Based on factors it considers relevant, the Authority shall determine, in its sole discretion, that the economic impact of the transaction will be substantial.
The Authority shall find:
that the acquisition or improvement of a facility will not result in:
the removal from one county to another county of the business operations of the facility user; or
the abandonment of a facility in the State; or
if the acquisition or improvement will result in removal or abandonment, that the acquisition or improvement will:
discourage the facility user from leaving the State; or
preserve the competitive position of the facility user in its industry.
The Authority shall find that the Authority will not be required, except on default, to operate, service, or maintain the facility.
The bonds or instruments shall be secured in a manner that the Authority approves.
Financial assistance from the Fund provided under this section may not exceed an aggregate amount of $7,500,000 for a single facility.
If the requirements of this section are satisfied, and subject to § 5–432 of this subtitle, the Authority may use the Fund to:
insure the payment of any of the principal of, redemption or prepayment premiums or penalties on, and interest on authorized purpose obligations; and
pay or insure the payment of fees or premiums for insurance, guarantees, or other credit support in connection with financial assistance under this subtitle.
Based on factors it considers relevant, the Authority shall determine, in its sole discretion, that the economic impact of the transaction will be substantial.
The Authority shall find:
that the transaction will not result in:
the removal from one county to another county of the business operations of any person who benefits from the transaction; or
the abandonment of the business operations in the State of any person who benefits from the transaction; or
if the transaction will result in removal or abandonment, that the transaction will:
discourage the business from leaving the State; or
preserve the competitive position of the business in its industry.
Financial assistance under this section may only be used in connection with a retail establishment if the Authority determines, in its sole discretion, that the financial assistance will accomplish the purposes of this subtitle.
The Authority shall find that the Authority will not be required, except on default, to operate, service, or maintain any business.
The authorized purpose obligations shall be secured in a manner that the Authority approves.
Financial assistance from the Fund provided under this section may not exceed an aggregate amount of $2,500,000 for a single transaction.
The aggregate amount of insurance provided under this section for a single authorized purpose obligation may not exceed:
for an export–related financing transaction, 90% of the total of the principal of, redemption or prepayment premiums or penalties on, and interest on the authorized purpose obligation; or
for a transaction other than an export–related financing transaction, 80% of the total of the principal of, redemption or prepayment premiums or penalties on, and interest on the authorized purpose obligation.
The portion of the aggregate principal amount of bonds and authorized purpose obligations that the Fund insures at any time may not exceed 5 times the Fund balance.
Financial assistance under this subtitle is:
subject to the provisions of Title 20 of the State Government Article concerning discrimination and unlawful practices; and
not subject to Title 17, Subtitle 1 of the State Finance and Procurement Article (Security for construction projects).
The Authority may issue and sell bonds in accordance with Title 12, Subtitle 1 of this article (Maryland Economic Development Revenue Bond Act) and this subtitle to accomplish the purposes of this subtitle.
The Authority may issue its bonds without the consent of any other unit of State government, any proceedings, or the occurrence of any conditions, other than those expressly required by this subtitle.
Before the Authority issues bonds, the Authority shall notify the Board of Public Works of its intention to issue the bonds up to a stated amount.
The Board of Public Works may coordinate the issuance of the bonds with any issuance of bonds of the State or its units or instrumentalities.
The failure of the Authority to notify the Board of Public Works under paragraph (2)(i) of this subsection does not affect the validity or enforceability of bonds, findings or determinations, or agreements of the Authority.
When the Authority issues bonds, it is in the public interest that the Authority try to achieve a goal that 10% of the facility users are minority business enterprises as defined in § 14-301 of the State Finance and Procurement Article.
The failure of the Authority to achieve the goal set out under paragraph (1) of this subsection does not affect in any way the validity or enforceability of bonds, findings or determinations, or agreements of the Authority.
This subsection does not apply to insurance that the Authority provides.
A bond the Authority issues and the interest on the bond are limited obligations of the Authority.
Except for bond anticipation notes and notes in the nature of commercial paper, the principal of, premium, and interest on a bond are payable solely from:
money from the financing of a facility; and
other money made available to the Authority.
Bonds and the interest on them:
are not debts or charges against the general credit or taxing powers of the State, the Department, the Authority, or any other public body within the meaning of any constitutional or charter provision or statutory limitation; and
may not give rise to any pecuniary liability of the State, the Department, the Authority, or any other public body.
A bond may state on its face that the bond:
is issued under Title 12, Subtitle 1 of this article (Maryland Economic Development Revenue Bond Act) and this subtitle; and
is not a debt to which the faith and credit of the State, the Department, the Authority, or any other public body is pledged.
Bonds that the Authority issues are exempt from State and local taxes as provided in § 12-116 of this article.
Facilities financed with the proceeds of bonds that the Authority issues are not subject to the requirements of any law regarding competitive bidding.
The Authority may authorize the Executive Director of the Authority to approve, on behalf of the Authority, financial assistance under § 5–431 of this subtitle not exceeding the aggregate amount of $250,000 for a single transaction.
An approval by the Executive Director under this section:
is subject to concurrence of the Secretary, the Secretary’s designee, or the chair of the Authority;
shall comply with the requirements of this subtitle; and
is binding on the Authority.
In conjunction with financial assistance under this subtitle, the Authority may:
accept an option to acquire an equity interest in a business enterprise; and
exercise, in its sole discretion, the option using money from the Fund.
The Authority may set premiums and fees for financial assistance under this subtitle in its sole discretion.
The premiums and fees shall be payable in the amounts, at the time, and in the manner that the Authority requires in its sole discretion.
The premiums and fees may vary in amount among approvals for financial assistance under this subtitle and at different stages of the financial assistance.
The Authority may not charge a premium for insurance if the Authority determines that, at the time the insurance is approved, the facility or business for which the Authority provides insurance is located in a Tier I county.
A determination by the Authority under subsection (a) of this section for a facility or business is effective for as long as the financial assistance is in effect.
Insurance on bonds or authorized purpose obligations provided before July 1, 2000, shall continue as obligations of the Authority and are authorized under this subtitle.
Financial assistance that the Authority approves, but that is not closed before July 1, 2000, is authorized under this subtitle.
Bonds issued by the Maryland Energy Financing Administration shall continue after December 31, 2001, as obligations of the Authority and are authorized under this subtitle.
Loan guarantees that the Department provided from the former Day Care Loan Guarantee Fund shall continue as obligations of the Authority and are authorized under this subtitle.
Deposit agreements between the Department and a lender under the former Maryland Enterprise Incentive Deposit Fund Program shall continue as obligations of the Authority and are authorized under this subtitle.
The Authority shall participate in financial assistance programs for energy projects provided by the federal Energy Security Act, P.L. 96-294.
For purposes of that Act, the Authority is a “person” as defined in:
42 U.S.C. § 8802, concerning the financing of biomass energy, municipal solid waste, and alcohol fuels projects; and
30 U.S.C. § 1511, concerning the financing of geothermal energy projects.
For purposes of the federal Public Utility Regulatory Policies Act of 1978, the Authority is a “nonprofit organization” as defined in 16 U.S.C. § 2708 and used in 16 U.S.C. §§ 2702 and 2703, concerning small-scale hydropower projects.
In this section the following words have the meanings indicated.
“Renewable fuel” means gaseous, liquid, or solid fuel from any organic matter and its by–products.
“Renewable fuel” includes fuel from:
an agricultural crop, agricultural waste, or agricultural residue;
wood, wood waste, or wood residue;
animal waste;
aquatic plants;
sewage or sewage sludge;
municipal, industrial, or commercial waste;
any mixture of any of these substances with inorganic refuse from a public or private municipal waste collection system or similar disposal system; or
any combination of items 1 through 7 of this subparagraph.
“Renewable fuel” does not include fossil fuel.
“Transportation facility” means a transportation facility that is used exclusively to transport fuel produced by a fuel production facility to:
a storage facility;
a pipeline connection to an existing pipeline or processing facility; or
an area near the fuel production facility.
A project qualifies as an energy project if it consists of:
an energy conservation project;
a solar energy project;
the construction of a facility to produce solar energy equipment;
the construction of a facility or portion of a facility to:
produce renewable fuel; and
burn renewable fuel, or a mixture of renewable fuel with other materials, to generate:
heat;
mechanical power;
electricity, including by cogeneration; or
other useful forms of energy;
the conversion of any facility to use renewable fuel;
the expansion or improvement of a facility that increases its capacity or efficiency to use renewable fuel;
the acquisition and improvement of equipment for use in a facility specified in items (4) through (6) of this subsection;
the acquisition or improvement of land for a facility specified in items (4) through (6) of this subsection;
the purchase, construction, or installation of a facility or equipment to use groundwater as a heat source for a heating system or as a heat sink for an air conditioning system;
the purchase, construction, or installation of a facility or equipment to develop and use the natural heat of the earth for direct use or to generate electricity;
the purchase, construction, and installation of a hydroelectric facility at an existing dam that:
uses the water power potential of the dam; and
has no more than 30 megawatts of installed capacity;
the construction of a fuel production facility for commercial production of a gaseous, liquid, or solid fuel, or of a combination of them, that:
is produced by chemical or physical transformation of coal or mixtures of coal and other materials;
can be used as a substitute for petroleum or natural gas, or any of their derivatives, including chemical feedstocks; and
includes only:
the fuel production facility, including the equipment, plant, supplies, and other materials associated with the fuel production facility;
the land and mineral rights required directly for use in connection with the fuel production facility;
any other facility or equipment to be used in the extraction of a mineral for use directly and exclusively in the fuel production facility that is necessary to the project and is:
colocated with or located in the immediate vicinity of the fuel production facility; or
if not colocated or located in accordance with item A of this item:
a coal mine in the case that no other reasonable source of coal is available to the project; or
II. incidental to the project; and
any transportation facility, electric power plant, electric transmission line, or other facility that is:
for the exclusive use of the project;
incidental to the project; and
necessary to the project;
the conversion of a facility from using petroleum–based fuel to coal or to a mixture of coal and other materials as a fuel; or
the construction of a facility to burn coal using innovative technology that increases the efficiency of the combustion process.
In awarding financial assistance under this subtitle for an energy project, the Authority shall consider whether the energy project would:
reduce the consumption of petroleum and other energy sources;
increase the energy supply available in the State;
increase employment and economic activity in the State;
use sound technology and be economically feasible;
minimize harm to the environment; and
make the most use of federal financial assistance programs for energy projects.
The Authority shall:
promote programs of financial assistance for energy projects established under this subtitle;
inform consumers, the private sector, and financial institutions about these programs and actively seek their participation;
develop and disseminate descriptions of its programs of financial assistance for energy projects; and
serve as a clearinghouse for information on federal and State programs of financial assistance for energy projects.
A project involving a commercial building, an industrial building, or an industrial process qualifies as an energy conservation project if it consists of:
the purchase, installation, or modification of an installation that is designed primarily to reduce the consumption of energy, including:
caulking or weather stripping;
insulating the building structure or a system in the building;
a storm window or door, a multiglazed window or door, a heat-absorbing or heat-reflecting window or door system, glazing, a reduction in glass area, or another window or door system modification;
an automatic energy control system;
equipment that is associated with an automatic energy control system and that is required to operate a variable steam, hydraulic, or ventilation system;
the replacement or modification of a lighting system to increase energy efficiency;
an energy recovery system;
a cogeneration system;
a system for processing or converting the waste products of the industrial process to steam, electricity, heat, or other useful form of energy;
an improvement to the industrial process that reduces the energy requirements for each unit of output;
a modification of a furnace or utility plant and distribution system including:
a replacement burner, furnace, or boiler or any combination of them that increases the energy efficiency of the heating system;
a device for modifying a flue opening that increases the energy efficiency of the heating system; and
an electrical or mechanical furnace ignition system that replaces a standing gas pilot light; or
any other energy conservation improvement that the Authority determines by regulation to be appropriate and consistent with this subtitle; or
a planning or technical service or an energy audit, if the service or audit is related to or undertaken with the installation, or the modification of an installation of an item specified in item (1) of this section.
A project qualifies as a solar energy project if it:
is an addition, alteration, or improvement to a commercial building or industrial building; and
is designed to reduce the energy requirements of the building by using:
wind energy;
energy from a wood-burning appliance; or
solar energy of:
the active type based on mechanically forced energy transfer;
the passive type based on convective, conductive, or radiant energy transfer; or
a combination of these types.
A solar energy project may include:
a solar process heat device;
a solar electric device; and
an earth-sheltered building in which the sheltering substantially reduces the consumption of energy by the building.
In this part the following words have the meanings indicated.
“Applicant” means the eligible business applying for fixed asset financing assisted by a linked deposit.
“Eligible business” means a for–profit business that:
is located in a qualified distressed county;
is in good standing with each State regulatory authority with jurisdiction over the business of the applicant, including the State Workers’ Compensation Commission, the Department of Assessments and Taxation, and the Maryland Department of Labor; and
employs 500 or fewer employees.
“Fixed asset financing” means a commercial loan to finance:
the acquisition or improvement of all or part of a building;
the acquisition or improvement of the land for the building if not already owned by the applicant; or
the acquisition or improvement of equipment.
“Fixed asset financing” does not include refinancing an existing debt.
“Lender” means a financial institution that:
is eligible to make commercial loans;
is a public depository of State funds;
agrees to receive linked deposits under this part; and
is insured by the Federal Deposit Insurance Corporation.
“Linked deposit” means a deposit that the Authority places with a lender that earns interest below the prevailing market rate for equivalent deposits made with the lender at the time of the deposit.
“Program” means the Linked Deposit Program established under § 5–452 of this subtitle.
There is a Linked Deposit Program in the Department.
The purpose of the Program is to stimulate economic and employment growth in rural areas of the State with high unemployment.
The Program shall assist eligible businesses to obtain a loan at below market rates.
An eligible business may use a Program loan to acquire land, buildings, and equipment.
An acquisition made by an eligible business with a Program loan shall be used to create or retain employment opportunities in a rural area.
The Authority may place a linked deposit with a lender in accordance with this part.
To obtain fixed asset financing under this part, an eligible business shall apply to a lender for fixed asset financing.
Fixed asset financing under this part may not exceed $500,000 for an eligible business.
In addition to the information that the lender requires in its standard loan application, the applicant shall provide to the lender, in a form that the Authority prescribes:
a certification, with supporting documentation, that the applicant is an eligible business; and
a description of the number and kinds of jobs to be created or retained as a result of providing the linked deposit.
On conditional approval of a fixed asset financing loan application under this part, the lender shall forward the loan package to the Authority.
In addition to any other information the Authority reasonably requires to carry out the purposes of this part, the linked deposit loan package shall include the information required of the applicant under § 5-455(c) of this subtitle.
By forwarding the loan package to the Authority, the lender is not representing to the Authority that information in the loan package that relates to the applicant is accurate or valid.
In determining whether to accept a linked deposit loan package, the Authority shall confirm the eligibility of the applicant and consider:
the number and kinds of jobs to be created or retained as a result of providing the linked deposit;
the amount of the loan;
the amount of money in the Fund and the amount committed to linked deposits;
whether the availability of linked deposit financing is essential for the economic feasibility of the acquisition;
the economic needs of the area in which the eligible business is located;
the financial feasibility of the loan; and
other factors that the Authority considers relevant.
If the Authority accepts a linked deposit loan package forwarded from a lender, the Authority and the lender shall make an agreement that sets the amount of, the term of, and the schedule for payment of the principal of and interest on the linked deposit.
On receiving linked deposit approval from the Authority, the lender shall issue a loan commitment to the applicant that provides that the interest rate on the financing will be below the prevailing market rate to the same extent and for as long as interest earned on the linked deposit is below interest earned on other equivalent deposits with the lender at the time of the deposit.
A fixed asset financing loan assisted by a linked deposit is not a debt of the State or a pledge of the credit of the State.
The Authority and, in accordance with § 5-521 of the Courts Article, the Department and the State are not liable to a lender for payment of the principal or interest on a fixed asset financing loan assisted by a linked deposit under this part.
A person may not knowingly make or cause a false statement or report to be made in an application or document submitted to the Authority.
A person may not knowingly make or cause a false statement or report to be made to influence an action of the Authority:
on an application for financial assistance under this subtitle; or
affecting financial assistance sought or awarded under this subtitle.
A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.
A person who violates this section is subject to § 5-106(b) of the Courts Article.
This subtitle may be referred to as the Maryland Industrial Development Financing Authority Act.