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§ 5-1806. Loan loss reserve account

West's Annotated Code of MarylandEconomic DevelopmentEffective: October 1, 2021

West's Annotated Code of Maryland
Economic Development (Refs & Annos)
Division I. Secretary of Commerce and Department of Commerce [Titles 1-8] (Refs & Annos)
Title 5. Economic Development and Financial Assistance Programs (Refs & Annos)
Subtitle 18. Capital Access Program (Refs & Annos)
Effective: October 1, 2021
MD Code, Economic Development, § 5-1806
§ 5-1806. Loan loss reserve account
Currentness
In general
(a) The Department shall establish a loan loss reserve account for a lender when a lender enrolls its first loan under the Program.
Payments to account
(b) At the time of enrollment:
(1) the borrower shall make a payment to the account of between 0% and 7% of the enrolled loan amount;
(2) the lender shall make a payment to the account of at least 2% of the enrolled amount; and
(3) the Department shall make a matching payment to the account in an amount equal to the borrower and lender's aggregate payment under items (1) and (2) of this subsection.
Withdrawals from account
(c) The loan loss reserve account of a lender shall be available for the lender to withdraw if a borrower defaults on a qualifying loan.
Withdrawals from the Program
(d) The Department shall establish procedures for a lender to withdraw from the Program.

Credits

Added by Acts 2021, c. 704, § 1, eff. Oct. 1, 2021.
MD Code, Economic Development, § 5-1806, MD ECON DEV § 5-1806
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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