Chapter 05. Maryland Industrial Development Financing Authority Bond Program

“Applicant” means a corporation, partnership, sole proprietor, joint venture, or individual applying for financial assistance under the Program.

"Authority" means the Maryland Industrial Development Financing Authority.

“County” means any county or Baltimore City.

“Department” means the Department of Commerce, a principal department of the State.

“Director” means the Executive Director or Associate Director of the Authority.

“Financial assistance” means the issuance of bonds or insurance under the Program.

“Financial institution” means any financial institution as that term is defined in Financial Institutions Article, §1-101(h), Annotated Code of Maryland, as well as any other lender approved by the Authority.

“Insurance” means insurance of a loan by the Authority in accordance with the MIDFA Act.

“Insurance agreement” means the insurance agreement between the lender or its representatives and the Authority providing for the terms of the Authority's insurance under the Program.

“Lender” means a financial institution that makes a loan, purchases a bond, or provides other credit enhancement under the Program.

“Loan” means any type of financial obligation under the Program, including bonds or notes, letters of credit or other instruments, certificates or other evidences of obligation issued, offered for sale or delivered by any person or public body for any purpose found and determined by the Authority to accomplish the purposes of the MIDFA Act and the Revenue Bond Act.

“MIDFA Act” means Economic Development Article, Title 5, Subtitle 4, Annotated Code of Maryland.

“Program” means the Bond Program, as authorized by the MIDFA Act and the Revenue Bond Act.

“Revenue Bond Act” means Economic Development Article, Title 12, Subtitle 1, Annotated Code of Maryland.

“Secretary” means the Secretary of Commerce.

$5,000,000; or

100 percent of the total of:

Amount of the loan;

Amount and type of collateral securing the loan;

Request of the lender;

Economic impact of the loan; and

Any other factor that the Authority considers relevant.

A loan shall be secured by liens on real property, equipment, or other assets purchased with loan proceeds and any other collateral approved by the lender and the Authority which may include, but are not limited to:

The personal guarantees of the principals of the applicant shall be required when the Authority insures a loan.

Amount of the loan;

Amount of any requested insurance;

Amount of any required volume cap allocation;

Terms of the loan to be insured;

Number of new jobs that will be created or existing jobs that will be retained because of the loan;

Addition to the tax base of a county and the State;

Development of small and medium businesses and minority-owned businesses;

Promotion of tourism in the State;

Retention of existing industry and commerce and the attraction of new industry and commerce in the State and a balanced economy in the State through, among other things, port development and the control, reduction, or abatement of pollution of the environment, and the utilization and disposal of wastes;

Factors which lead to the broadening of capital ownership, including the establishment of employee stock ownership plans;

Protection of natural resources and the encouragement of resource recovery;

General promotion of the health, welfare, and safety of the residents of each of the counties and municipalities of the State; and

Any other factor that the Authority considers relevant.

The Authority shall determine that the transaction will not result in the removal of the business operations of any person benefiting from the transaction, from one county to another county, or the abandonment of the business operations in the State of any person benefiting from the transaction.

If the transaction will result in the occurrence of either of the events in §F(1) of this regulation, the Authority shall determine that the transaction will discourage the business from leaving the State or will preserve the competitive position of the business in its industry.

Applicant to provide an American Land Title Association Loan Policy, as amended, issued by a title insurance company acceptable to the Authority for an amount equal to the maximum principal amount of the loan, naming the Authority as an insured, evidencing that title to property offered as collateral on the date of closing is vested in the applicant, and containing only standard exceptions and encumbrances approved by the Authority.

Title insurance policy to be accompanied by a survey, certified in the manner required by the Authority and the title company issuing the title insurance, showing that there are no easements or encroachments upon or other matters pertaining to the property, except those acceptable to the Authority. The title insurance policy may not contain any survey exceptions.

A fully completed and properly executed application;

A copy of the articles of incorporation, bylaws, partnership agreement, or other organizational documents;

A detailed description of the proposed use or uses of the proceeds of the loan including projected cash flow analyses and appraisals, and marketing plans or descriptions if requested by the Authority;

Information that relates to the financial status of the applicant, including:

A detailed description of the application's experience in the trade or business for which the financial assistance is sought;

Information that relates to the economic impact to be created by the financial assistance; and

Any other relevant information the Authority requests.

After execution of the application, the applicant shall submit it to the Authority along with a copy of an executed commitment letter from the lender to provide financing which, at a minimum, shall state the amount, rate, and terms of the financing and amount of any requested insurance or a letter of intent from the lender on a form prescribed by the Authority.

Each application shall be subject to an initial review by the Authority's staff to make a preliminary determination of the eligibility of the applicant and the project in accordance with these regulations.

Each application shall be submitted to the Authority for review by the Authority's staff at least 14 business days before any Authority meeting date.

Be administrative in nature, not subject to the procedures required for legislative acts, and not subject to referendum;

Specify and describe the facility; and

Generally describe the public purpose to be served by the facility.

Validity or enforceability of any bonds issued by the Authority;

Validity of any finding or determination by the Authority under the MIDFA Act; or

Validity or enforceability of any agreement entered into by the Authority under the MIDFA Act.

1/2 of 1 percent of the outstanding insured principal balance of the loan; or

$500.

Other fees charged by the Authority or the lender;

Amount of the loan or the amount of the insurance;

Economic impact caused by the loan; and

Other factors that the Authority considers relevant.

In any application or in any document furnished to the Authority;

For the purpose of influencing the action of the Authority on an application for financial assistance or for the purpose of influencing any action of the Authority affecting financial assistance whether or not the assistance may have been already extended.