This chapter describes the policies, procedures, and authorizations for providing financial assistance to eligible small businesses from the Neighborhood Business Development Fund through the Capital Access Program, and for administering the Capital Access Program. The objectives of the Capital Access Program as set forth in Housing and Community Development Article, Title 6, Subtitle 3, Annotated Code of Maryland, are to foster economic growth and development in the State by: Stimulating the provision of private capital to small businesses; and Offering an incentive to each lender participating in the Program to make loans to borrowers that otherwise might not qualify for conventional loans, through a reserve account established for the exclusive benefit of that lender. Loans made under the Program are to be slightly riskier than conventional loans, but will still offer a high degree of soundness in connection with the Program. In this chapter, the following words have the meanings indicated, and also as defined in Housing and Community Development Article, Title 6, Subtitle 3, Annotated Code of Maryland. Terms Defined. “Amount”, as used in this chapter in connection with a loan, means only the amount covered under a participation agreement, unless the context clearly requires otherwise. “Borrower” means the recipient of a loan that is, has been, or will be filed by the lender for enrollment under the Capital Access Program. “Business” means a commercial or industrial enterprise. “Claim” means a claim filed by the lender under Regulation .19 of this chapter. “Department” means the Department of Housing and Community Development, a principal department of the State. “Early loan” means an enrolled loan where, at the time of enrollment, the aggregate amount of previously enrolled loans made by the lender under the Capital Access Program was less than $2,000,000. “Eligible loan” means a loan made by the lender to a borrower that meets the requirements of Regulations .09, .10, and .11 of this chapter. “Enrolled loan” means a loan enrolled by the Department under the terms of Regulation .14 of this chapter. “Financial assistance” means any form of assurance, guarantee, or other credit enhancement offered with respect to a loan made and enrolled under the Program. “Fund” means the Neighborhood Business Development Fund under Housing and Community Development Article, Title 6, Subtitle 3, Annotated Code of Maryland. “Lender” means a federally insured financial institution as defined in Financial Institutions Article, §1-101(i), Annotated Code of Maryland, or other institution regulated by the Commissioner of Financial Regulation, that has entered into a participation agreement with the Department to participate in the Capital Access Program. Local Jurisdiction. “Local jurisdiction” means: A municipal corporation subject to the provisions of the State Constitution, Article XI-E, if a project is located entirely within the boundaries of the municipal corporation; or The Mayor and City Council of Baltimore and any of the 23 counties of this State within which a project is located. If part of a project is located within one local jurisdiction while the remainder of the project is located in a different local jurisdiction, then for that project, “local jurisdiction” includes each local jurisdiction within which any part of the project is located. “Mixed use” means a use that combines residential and business uses in the same building. “Participation agreement” means an agreement between a lender and the Department under which a lender may participate in the Program. Passive Real Estate Ownership. “Passive real estate ownership” means ownership of real estate for the purpose of deriving income from speculation, trade, or rentals. “Passive real estate ownership” does not include the following: Ownership of that part of real estate being used or intended to be used for the operation of the business of the owner of the real estate; or Ownership of real estate for the purpose of construction or renovation until the completion of the construction or renovation phase. “Priority funding area” means a priority funding area as stated in State Finance and Procurement Article, §5-7B-02, Annotated Code of Maryland. “Proceeds”, as used in this chapter in connection with a loan, means only the proceeds covered under a participation agreement, unless the context clearly requires otherwise. “Program” means the Capital Access Program. “Project” means a project or activity that qualifies for a loan made under the Program. “Reserve account” means an account established by the Department: With funds accumulated under this chapter; and To cover claims made by the lender under this chapter. “Secretary” means the Secretary of Housing and Community Development. “Small business” means a business that employs a number of employees, or has annual gross receipts, no greater than the limits set forth by the U.S. Small Business Administration. A lender is eligible to participate in the Program upon entering into a participation agreement with the Department that governs the duties of the Department and the lender under the Program. Each participation agreement shall specify that the enrollment of the lender's loans under the Program does not pledge the faith, credit, or taxing power of the State, the Department, the Program, or the Fund. The lender shall provide the Department with the information regarding the lender's participation in the Program that the Department reasonably requires. Upon notice to the lender, and during normal business hours of the lender, the Department may inspect the files of the lender relating to any loans enrolled under the Program. Except upon the exercise of the Department's right of subrogation under this chapter, the Department has no legal or equitable interest in any collateral, security, or other right of recovery in connection with any loan enrolled in the Program, and the Department's consent is not necessary for any amendment to the lender's loan documents. Upon execution of a participation agreement between the Department and the lender, the Department shall establish a federally insured reserve account with the lender in the name of the Department, for the purpose of receiving all: Required premium charges to be paid by the lender and the borrower; Transfers made by the Department under this chapter. All money deposited or otherwise credited to the reserve account is under the exclusive control of the Department. The Department may not withdraw money from the reserve account, except as specifically provided in this chapter. If money in the reserve account is not deposited by the Department in a federally insured account with the lender, the money shall be invested or reinvested by the Department in one of the following: Direct obligations of the United States, the principal and interest of which are unconditionally guaranteed by the United States; or A deposit account at a depository institution whose deposits are insured by the Federal Deposit Insurance Corporation or National Credit Union Administration. If the reserve account for a given lender is not maintained with that lender, the Department shall provide to the lender quarterly transaction reports indicating the following: The balance in the reserve account; Payments and transfers into the reserve account; Withdrawals from the reserve account; and Interest or income earned on the money credited to the reserve account. The records of the Department are available to the lender at the offices of the Department, during normal business hours of the Department, with respect to: Payments and transfers into the reserve account; Withdrawals from the reserve account; and Interest or income earned on the money credited to the reserve account. All interest earned in a reserve account shall be credited to that account. Fifty percent of the interest earned may be withdrawn by the Department from that account and used for any purpose. The Department shall pledge the following to the lender: The money in the reserve account is available to pay claims under Regulation .19 of this chapter; The lender has a first security interest in the money in the reserve account to pay the claims; and The Department will not encumber or pledge the money to any other party. Assurances, guarantees, or other credit enhancements provided under the Program do not pledge the faith, credit, or taxing power of the State, the Department, the Program, or the Fund, and hence are payable only to the extent of the reserve account established for any given lender. An applicant shall meet the following minimum requirements to be an eligible borrower for loans made under the Program: Be in good standing and qualified to do business in Maryland; Be a small business; Have the legal capacity and all necessary legal authority to incur the obligations involved in the form of financial assistance provided under the Program; and Not be a government entity, including without limitation a local housing authority. A borrower shall meet the following minimum requirements: The borrower shall be authorized to conduct business in the State as: A corporation, A limited liability company, A partnership, A joint venture, A sole proprietorship, A cooperative, or Another form of business entity; The borrower shall be a for-profit or nonprofit small business; and The borrower may not be: An executive officer, a director, or a principal shareholder of the lender, A member of the immediate family of a person described in §B(3)(a) of this regulation, or An entity controlled by a person described in §B(3)(a) or (b) of this regulation. The following types of loans are eligible loans under the Program: Loans for industrial or commercial purposes; Loans to refinance loans made for the purposes in §A(1) of this regulation; and Loans for line of credit agreements established between the lender and the borrower that are used for the purposes in §A(1) of this regulation. Eligible loans shall meet the following criteria: The lender has not made the loan to enroll in the Program a prior debt that is not covered under the Program and that is or was owed by the borrower to the lender; The proceeds of the loan will not be used for a project or development devoted to housing, except as provided under Regulation .11C of this chapter; The proceeds of the loan will not be used to finance passive real estate ownership; and The proceeds of the loan will not be used for any of the following businesses or uses: Adult bookstore, adult video shop, or other adult entertainment facility, Check-cashing facility, College or university, Community hall, Fire station, Gambling facility, Hospital, Liquor store, Massage parlor, Multi-family or single-family housing development including the development of rental properties other than mixed use projects permitted under COMAR 05.13.01.06A(10), Nursing home, Passive real estate ownership, Pawn or gun shop, Tanning salon, or Tattoo parlor. The proceeds of an eligible loan may not be used for the furtherance of sectarian religious instruction, or in connection with the design, acquisition, or construction of any building used or to be used as a place of sectarian religious worship or instruction, or in connection with any program or department of divinity for any religious denomination, including but not limited to religious services, religious instruction, or other activities that have an explicitly religious content. An eligible loan may provide for an interest rate, fees, security, and other terms and conditions agreed to by the lender and the borrower. If the loan amount to be borrowed is determined by a commitment agreement that establishes a line of credit, the amount of the loan is the maximum amount available to the borrower under the agreement. In order to be eligible for a loan under the Program, a project shall satisfy the following requirements: The project is located within a priority funding area in the State; Upon completion, the project will be in compliance with all applicable zoning requirements and standards as well as the applicable building code of the local jurisdiction in which the project is located; and If the project is a mixed use project, it has a commercial or retail use at street level. To enroll a loan under the Program, the lender shall file a completed loan enrollment form with the Department. The lender shall also certify the following to the Department as part of the filing: The lender has no substantial reason to believe that the loan is being made to a borrower who does not meet the requirements of Regulation .09 of this chapter; The lender has received from the borrower a written representation, warranty, pledge, and waiver stating that the borrower has no legal, beneficial, or equitable interest in the nonrefundable premium charges or any other funds credited to the reserve account established to cover losses sustained by the lender on enrolled loans; The loan being filed for enrollment is an eligible loan under Regulations .10 and .11 of this chapter; and Premium charges required of the borrower and the lender under Regulation .16 of this chapter have been deposited in the reserve account. The lender shall file the enrollment form not later than 45 business days after the lender makes the loan. The date on which the lender makes a loan is the earlier of: The date on which the lender first disburses proceeds of the loan to the borrower; or The date on which the loan documents have been executed and the lender has obligated itself to disburse proceeds of the loan. The filing date of a loan enrollment form is the date on which the lender does any of the following: Delivers the required documentation to the Department; Delivers the required documentation to a professional courier service for delivery to the Department; or Mails the required documentation to the Department by certified mail. When filing a loan enrollment form, the lender shall specify an amount to be covered under the Program. The amount may be less than, but not greater than, the total principal amount of the loan. In the case of a loan to refinance a loan that was previously made by the lender to the borrower but that was not enrolled under the Program, the lender may obtain coverage under the Program for an amount not exceeding the amount of additional financing. If an enrolled loan is refinanced and the total amount to be covered under the Program does not exceed the covered amount of the loan as previously enrolled, the refinanced loan may continue as an enrolled loan without payment of additional premium charges or transfers by the Department to the reserve account. If an enrolled loan is refinanced in an amount that exceeds the amount of the loan as previously enrolled, the lender may obtain coverage of the amount that exceeds the amount covered when the loan was previously enrolled by refiling the loan for enrollment under Regulation .12 of this chapter. Fluctuations in the outstanding balance of a line of credit, without increasing the enrolled amount under the Program, are not a refinancing of the loan. When the Department receives a loan enrollment form, the Department shall enroll the loan if the information provided under Regulation .12 of this chapter indicates that the loan is an eligible loan. Within 10 business days after receipt of a loan enrollment form for an eligible loan, the Department shall deliver to the lender an acknowledgment of enrollment signed by the Secretary or the Secretary's designee, including documentation of the amount being transferred by the Department into the reserve account under this chapter. The enrollment of a loan under the Program does not pledge the faith, credit, or taxing power of the State or of the Department with respect to that loan. The Department may not accept loans for enrollment in the Program if the Department does not have sufficient money to make the necessary transfer from the Fund to the reserve account described in Regulation .16 of this chapter. The Secretary may, from time to time, by written determination, establish minimum and maximum premium charges payable by borrowers in connection with loans filed for enrollment. Lender Premium Deposit Into the Reserve Account. The lender shall deposit into the reserve account the premium charges payable by the lender and the borrower in connection with a loan filed for enrollment. The premium paid by the borrower shall be not less than the minimum premium charge, and not more than the maximum premium charge, established by the Secretary under §A of this regulation. The lender may contribute any portion of the borrower's premium payment, and may recover the cost of this contribution from the borrower in any manner on which the lender and borrower agree. The premium paid by the lender shall be equal to the premium paid by the borrower, including any portion of the borrower's premium that may be contributed by the lender under §B(2) of this regulation. The lender may recover the cost of the lender's premium payment from the borrower in any manner on which the lender and borrower agree. When enrolling a loan, the Department shall transfer from the Fund into the reserve account a premium amount equal to the combined premiums paid into the reserve account by the borrower and the lender for each enrolled loan. The Secretary may, from time to time, by written determination, designate one or more areas lying within priority funding areas as CAP targeted areas, and may authorize the Department to make an increased premium payment for an enrolled loan made with respect to a project located in a CAP targeted area. The increased premium payment may, in the discretion of the Secretary, be in addition to, or in lieu of, the premium paid by the borrower under §B of this regulation. Unless money is paid out of the reserve account according to the specific terms of this chapter, all money paid into the reserve account by the lender shall remain in that account. Minimum and Maximum Amount of Financial Assistance. The minimum amount of an enrolled loan for which assurance may be provided under the Program to a project is $1,000. The maximum aggregate amount of enrolled loans for any one borrower, or any group of borrowers among which a common enterprise exists, is $1,000,000, unless, pursuant to a written request by a lender, the Secretary (or those authorized officers of the Department that the Secretary may designate in writing) approves a waiver of this maximum on the basis that: Other potential sources of funds have been sought and clearly are unavailable; It is not feasible to reduce or increase the size or scope of the project; and The project serves a high public purpose. For purposes of §A(2) of this regulation, the term “common enterprise” has the meaning stated in 12 CFR 32. Effect of Outstanding Balance of Zero. If the outstanding balance of an enrolled loan that is not a line of credit is reduced to $0, the loan is no longer an enrolled loan. If an enrolled loan that is a line of credit has an outstanding balance of $0 for a period of 12 months, the line of credit is no longer an enrolled loan, unless, before the expiration of the 12-month period, the lender reaffirms in writing to the borrower that the line of credit will remain open and the borrower acknowledges the reaffirmation in writing. Notwithstanding §A of this regulation, any amount recovered from a lender by a trustee in bankruptcy, or a similar representative of creditors, as a preference under 11 U.S.C. §547, remains an enrolled loan for the purpose of filing a claim against the reserve account. If the lender charges off all or part of an enrolled loan, the lender may file a claim with the Department. If the lender files a claim, it shall be filed contemporaneously with the charge off, and must be received by the Department within 30 days after the charge off. The lender's claim may include, in addition to the amount of principal charged off plus accrued interest, 1/2 of the reasonable and documented out-of-pocket expenses incurred in pursuing collection efforts, including preservation of collateral. The amount of principal included in the claim may not exceed the amount of principal covered under the Program. The amount of accrued interest included in the claim may not exceed the amount of accrued interest attributable to the covered principal amount. The lender shall determine when and how much to charge off on an enrolled loan in a manner consistent with the lender's normal method for making these determinations on similar loans that are not enrolled loans. If the lender files two or more claims contemporaneously and there are insufficient funds in the reserve account at that time to cover the entire amount of the claims, the lender may designate the order of priority in which the Department shall pay the claims, except that a claim made with respect to an early loan always has priority of payment over all other claims that are not made with respect to an early loan or loans. Upon receipt by the Department of a claim filed by the lender, the Department shall, within 10 business days, pay from the reserve account, or authorize the lender to withdraw from the reserve account, the amount of the claim as submitted, unless the Department reasonably determines that the lender: Provided information to the Department under this chapter that the lender knew to be false; or Is not otherwise in substantial compliance with this chapter or with the participation agreement with the Department. Result of Insufficient Money in Reserve Account. If there is insufficient money in the reserve account to cover the entire amount of the lender's claim, the Department shall pay to the lender, or authorize the lender to withdraw an amount equal to, the current balance in the reserve account. For the purposes of §B(1) of this regulation, the following shall apply: If the enrolled loan for which the claim has been filed is not an early loan, the payment fully satisfies the claim, and the lender has no right to receive any further amount from the reserve account with respect to that claim; or If the enrolled loan for which the claim has been filed is an early loan, the Department, upon request of the lender, shall, out of any future funds that are transferred into the reserve account on subsequently enrolled loans, pay the remaining balance of the claim, upon a finding that: The partial payment has not satisfied the lender's claim, and The remaining balance of the claim is not greater than 75 percent of the balance in the reserve account at the time the request for payment is received by the Department. The Department and the Fund are not liable for any claim if there is insufficient money in the reserve account to cover the entire amount of the claim. If, after payment of a claim by the Department, the lender recovers from a borrower any amount for which payment of the claim was made, the following apply: If the recovered amount, when added to the claim previously paid by the Department in connection with an enrolled loan, exceeds the lender's loss on that enrolled loan, the lender shall promptly pay to the Department for deposit in the reserve account the amount of the excess; and For the purposes of §A of this regulation and Regulation .22 of this chapter, the lender's loss on an enrolled loan is the amount of principal charged off by the lender plus accrued interest plus 1/2 of the reasonable and documented out-of-pocket expenses incurred by the lender in pursuing collection efforts. If the payment of a claim has fully covered the lender's loss on an enrolled loan, or if the payment of a claim when combined with any recovery from the borrower has fully covered the lender's loss, the Department, upon its own request, is subrogated to the rights of the lender with respect to any collateral, security, or other right of recovery in connection with the loan that has not been realized by the lender. The lender thereafter shall assign to the Department any right, title, or interest in or to any collateral, security, or other right of recovery in connection with the loan. If an assignment has been made under §A of this regulation, the Department is not required to undertake the obligations of the lender under the lender's loan documents, except for obligations directly related to the Department's assigned rights of recovery in connection with the loan. The lender shall fulfill any other obligations the lender has under the loan documents in the same manner and to the same degree as would be required if the assignment had not been made. The lender shall provide the Department with all reasonable assistance the Department requests in proceeding with respect to any collateral, security, or other right of recovery, except that the lender does not need to incur any out-of-pocket expenses. Reports by Lender. On or before July 15 of each year, the lender shall file a year-end report with the Department indicating the number and aggregate outstanding balances of all enrolled loans for the period comprising the 12 months ending on June 30. On or before October 15, January 15, and April 15 of each year, the lender shall file a quarterly report with the Department indicating the number and aggregate outstanding balances of all enrolled loans for the period comprising the 3 preceding calendar months. A quarterly report is not required for a quarter that ends with a balance in the reserve account of $0, but a year-end report shall be filed before July 15 for the period comprising the 12 months ending on June 30. In the computation of the aggregate outstanding balance of all enrolled loans, the balance of a loan may not be greater than the covered amount of the loan as enrolled. If a year-end report filed under §A of this regulation indicates that, for the immediately preceding 12-month period ending on June 30, the balance in the reserve account continuously exceeded 100 percent of the aggregate outstanding balance of all enrolled loans, including unfunded portions of enrolled loans that are lines of credit, the Department may make a withdrawal from the reserve account. The amount of the withdrawal may not be greater than the minimum amount of any excess as continuously maintained over the immediately preceding 12-month period ending on June 30. Withdrawals of excess sums by the Department under this section may be used for any purpose. If a year-end report is not filed within 30 days of the original due date of the report, the Department may make a withdrawal from the reserve account on the basis of the Department's determination from an inspection of the lender's files that, for the immediately preceding 12-month period ending on June 30, the balance in the reserve account continuously exceeded 100 percent of the aggregate outstanding balance of all enrolled loans, including unfunded portions of enrolled loans that are lines of credit. If the lender fails or refuses to make all or any part of its files available to the Department for inspection for this purpose, the Department may make a withdrawal from the reserve account on the basis of the Department's determination from a review of the Department's own records that, for the immediately preceding 12-month period ending on June 30, the balance in the reserve account continuously exceeded 100 percent of the aggregate outstanding balance of all enrolled loans, including unfunded portions of enrolled loans that are lines of credit. The amount of the withdrawal may not be greater than the minimum amount of any excess as continuously maintained over the immediately preceding 12-month period ending on June 30. Withdrawals of excess sums by the Department under this section may be used for any purpose. The right of the Department to make a withdrawal from the reserve account under §B or C of this regulation is subject to the following provisions: If a year-end report is filed by July 15 or not more than 30 days after that, the Department has the right of withdrawal for a period of 90 days from the date of the filing of the report with the Department; and If a year-end report is not filed within 30 days after the original due date, the Department has the right of withdrawal for a period of 90 days from the date the Department determines from an inspection of the lender's files (or, if the lender fails or refuses to make all or any part of its files available to the Department for inspection for this purpose, then from the date the Department determines from a review of the Department's own records) that the Department is entitled to make a withdrawal from the reserve account under this regulation. The Department may terminate the obligation to a lender to enroll loans under the Program if the Department determines that the lender is not in substantial compliance with the requirements of the Program or the requirements of this chapter. The termination takes effect on the date specified in the notice of termination, except that the termination does not apply to a loan made on or before the date on which the notice of termination is received by the lender. If the Department is terminating the enrollment of loans for all participating lenders under the Program, the Department shall provide at least 90 days notice to the lender. A termination under this regulation is prospective only and does not apply to a loan previously refinanced. After termination, the amount covered under the Program may not be increased beyond the covered amount as previously enrolled. A lender or borrower under the Program may not discriminate on the basis of race, color, religion, national origin, sex, marital status, physical or mental disability, sexual orientation, or age, except with regard to age as permitted under the federal Housing for Older Persons Act, as amended from time to time, or other similar federal laws, in any aspect of the Program, or in any aspect of employment by any borrower in connection with any project financed or assisted under the Program. A lender or borrower shall comply with all applicable federal, State, and local laws and Department policies and programs regarding discrimination and equal opportunity in employment, housing, credit practices, and drug and alcohol free workplaces, including: Titles VI and VII of the Civil Rights Act of 1964, as amended; Title VIII of the Civil Rights Acts of 1968, as amended; The Americans with Disabilities Act of 1990, as amended; The Fair Housing Amendments Act of 1988, as amended; The Department’s Minority Business Enterprise Program, as amended; The Governor’s Executive Order 01.01.1989.18, Drug and Alcohol Free Workplace, and Department or State regulations adopted or to be adopted to carry out the requirements of that Order; and State Government Article, Title 20, Annotated Code of Maryland, as amended. Covenants implementing the requirements of this regulation, including affirmative action measures, shall be included in appropriate agreements between the Department and other parties, and between lenders and other parties. The Department shall manage, supervise, and administer the Program. The Department shall market the Program to businesses and other persons in the State in cooperation with financial institutions and Statewide associations representing financial institutions. The Department shall make every effort to ensure that loans under the Program are reasonably available to qualified borrowers throughout the State. Reserve Accounts. If the reserve accounts are not maintained in an account with the lender, upon execution of a participation agreement the Department shall establish a reserve account at the Department for the lender for the purpose of receiving all required premium charges to be paid by the lender and the borrower and transfers made by the Department under this chapter. If the reserve accounts are maintained in an account with the lender, upon execution of a participation agreement the Department shall establish a reserve account with the lender in the name of the Department for the purpose of receiving all required premium charges to be paid by the lender and the borrower and transfers made by the Department under this chapter. The Department shall develop the Program, in cooperation with financial institutions and Statewide associations representing financial institutions, so that the degree of flexibility for the Department and the participating lenders is maximized, the State oversight of individual loans is minimized, and the fiscal integrity of the Program is maintained. The Department shall enter into any contracts necessary to carry out the Program. The Department shall take any action reasonably necessary to ensure compliance with the Program. The Program shall be operated with moneys in the Neighborhood Business Development Fund, which is a continuing, nonlapsing special fund consisting of those items as provided for in Housing and Community Development Article, Title 6, Subtitle 3, Annotated Code of Maryland. In connection with the Program, the Department may use moneys from the Fund to make premium payments under the Program and to pay expenses of the Program. At any time following the first 8 months of a fiscal year, the Department may transfer, subject to approval of the Legislative Policy Committee and subject to the provisions of State Finance and Procurement Article, §7-209, Annotated Code of Maryland, unencumbered moneys in the Fund to any other fund under Housing and Community Development Article, Title 4, Annotated Code of Maryland. The Secretary may waive or vary provisions of this chapter: To the extent that the waiver or variance is consistent with Housing and Community Development Article, Title 6, Subtitle 3, Annotated Code of Maryland; and If, in the written determination of the Secretary, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of Housing and Community Development Article, Title 6, Subtitle 3, Annotated Code of Maryland. A person may not knowingly make or cause to be made a false statement or report in any document required to be furnished to the Department in connection with a loan under the Program. A person applying for or benefiting from a loan under the Program may not knowingly make or cause to be made a false statement or report for the purpose of influencing the action of the Department on an application or for the purpose of influencing the action of the Department affecting financial assistance already provided. A person who violates §A or B of this regulation is subject to the following penalties: Immediate cancellation or acceleration of the form of financial assistance provided by the Program; and Upon conviction of a misdemeanor is subject to a fine not exceeding $50,000, or imprisonment not exceeding 5 years, or both. Housing and Community Development Article, §§2-102 and 4-504, and Title 6, Subtitle 3, Annotated Code of Maryland Effective date: December 25, 2000 (27:25 Md. R. 2279) Regulation .03B amended effective June 19, 2006 (33:12 Md. R. 996) Regulation .11C amended effective June 19, 2006 (33:12 Md. R. 996) Regulation .12B amended effective June 19, 2006 (33:12 Md. R. 996) Regulation .17A amended effective June 19, 2006 (33:12 Md. R. 996) Regulation .25 amended effective March 16, 2015 (42:5 Md. R. 485)