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<section article="gec" article_name="Economic Development" number="5-431" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority">
  <level label="a">
    <text>If the requirements of this section are satisfied, and subject to § 5–432 of this subtitle, the Authority may use the Fund to:</text>
    <level label="1">
      <text>insure the payment of any of the principal of, redemption or prepayment premiums or penalties on, and interest on authorized purpose obligations; and</text>
    </level>
    <level label="2">
      <text>pay or insure the payment of fees or premiums for insurance, guarantees, or other credit support in connection with financial assistance under this subtitle.</text>
    </level>
  </level>
  <level label="b">
    <text>Based on factors it considers relevant, the Authority shall determine, in its sole discretion, that the economic impact of the transaction will be substantial.</text>
  </level>
  <level label="c">
    <text>The Authority shall find:</text>
    <level label="1">
      <text>that the transaction will not result in:</text>
      <level label="i">
        <text>the removal from one county to another county of the business operations of any person who benefits from the transaction; or</text>
      </level>
      <level label="ii">
        <text>the abandonment of the business operations in the State of any person who benefits from the transaction; or</text>
      </level>
    </level>
    <level label="2">
      <text>if the transaction will result in removal or abandonment, that the transaction will:</text>
      <level label="i">
        <text>discourage the business from leaving the State; or</text>
      </level>
      <level label="ii">
        <text>preserve the competitive position of the business in its industry.</text>
      </level>
    </level>
  </level>
  <level label="d">
    <text>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.</text>
  </level>
  <level label="e">
    <text>The Authority shall find that the Authority will not be required, except on default, to operate, service, or maintain any business.</text>
  </level>
  <level label="f">
    <text>The authorized purpose obligations shall be secured in a manner that the Authority approves.</text>
  </level>
  <level label="g">
    <text>Financial assistance from the Fund provided under this section may not exceed an aggregate amount of $2,500,000 for a single transaction.</text>
  </level>
  <level label="h">
    <text>The aggregate amount of insurance provided under this section for a single authorized purpose obligation may not exceed:</text>
    <level label="1">
      <text>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</text>
    </level>
    <level label="2">
      <text>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.</text>
    </level>
  </level>
</section>
