§ 1836-E — Loan agreements

§ 1836-e. Loan agreements. 1. If the authority approves an application\nfor a loan under this subtitle, the local development corporation may\nenter into a loan agreement with the employee ownership association\nwhereby the local development corporation agrees to loan to the employee\nownership association the remaining funds necessary for the eligible\nproject.\n 2. No such loan may exceed forty percent of the cost of the project\nand the repayment of such loan shall be secured by a mortgage thereon\nwhich shall not be a junior encumbrance thereon by more than fifty\npercent of such cost, and by means of the guarantees of the loans made\nby banking organizations which guaranty shall not exceed eighty percent\nof the cost of the project, except as provided in paragraphs (a) and (b)\nof subdivision two of section eighteen hundred three and paragraph (a)\nof subdivision seven of section eighteen hundred twenty-three of this\nchapter.\n 3. The local development corporation may not enter into any loan\nagreement unless the authority determines through an appropriate method\nthat there is reasonable assurance of repayment. The authority shall\nestablish such requirements or terms as it may deem necessary or\ndesirable to secure the repayment of the loan and to protect the\ninterests of the authority and the holders of its bonds.\n 4. Subject to the requirements of this subtitle, the authority is\nauthorized to determine the form and substance of any loan agreement\nmade pursuant to this subtitle.\n