Code of Maryland Regulations › Title 34 - DEPARTMENT OF PLANNING › Subtitle 04 - HISTORICAL AND CULTURAL PROGRAMS › Chapter 34.04.02 - Maryland Historical Trust Historic Preservation Loan Program › Section 34.04.02.08 - Loan Terms and Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. General Requirements. Loans shall meet the following requirements:
(1) Maximum Loan Amount. The Trust shall establish a maximum loan amount for any proposed project proportionate to the value of the historic property to be assisted less any preexisting indebtedness secured by the historic property.
(2) Interest Rate.
(a) From time to time, the Trust shall establish interest rates in accordance with State Finance and Procurement Article, § 5A -327(i)(1)(iv), Annotated Code of Maryland.
(b) Interest rates may be preferred in relation to rates for other loans made at the time if:
(i) The borrower is a nonprofit organization or a local jurisdiction; or
(ii) Upon conclusion of any scheduled restoration or rehabilitation of the historic property, it will be occupied in whole or in part by individuals or families of limited income as determined by the Secretary of Housing and Community Development under Housing and Community Development Article, §
												4-212, Annotated Code of Maryland.
(3) Insurance. The borrower shall cause the assisted historic property to be insured against loss or damage by fire and other hazards, casualties, and contingencies as may be required from time to time by the Trust in amounts satisfactory to the Trust, as described in §C of this regulation.
(4) Term. Except as otherwise provided in Regulation .05A(4)(a) of this chapter regarding loans for predevelopment costs, the term of each loan may not exceed 20 years.
(5) Repayment.
(a) Except as otherwise provided in §A(5)(b)of this regulation, a single monthly payment shall be charged which shall be applied to expenses, when applicable, interest, and principal in that order.
(b) At the discretion of the Trust, interest and principal repayments may be deferred in accordance with the terms and provisions of the loan documents.
(6) Late Charge. The Trust may impose late charges, as permitted by law.
(7) Security.
(a) Financial assistance from the Trust may be secured, at the discretion of the Trust, by collateral acceptable to the Trust; and
(b) Collateral acceptable to the Trust may include:
(i) A cash escrow;
(ii) A letter of credit;
(iii) A pledge of depository accounts;
(iv) A pledge of accounts receivable;
(v) An assignment of income;
(vi) A security interest in machinery and equipment;
(vii) A mortgage or deed of trust on the historic real property assisted by the loan;
(viii) A mortgage or deed of trust on other real property satisfactory to the Trust; or
(ix) Guarantees of repayment from guarantors acceptable to the Trust.
(8) Preservation Agreement. The borrower, and the owner of the assisted historic property if the owner is not the borrower, shall enter into an agreement with the Trust to preserve and maintain the historic property in such manner and for such duration as is acceptable to the Trust.
(9) Plans and Specifications.
(a) The plans and specifications for rehabilitation and restoration projects under Regulation .05A(2) and (3) of this chapter or for a predevelopment cost project under Regulation .05A(4) of this chapter shall be subject to review and approval by the Trust.
(b) Projects shall conform to standards for acquisition, rehabilitation, and restoration established by the Trust as well as any other applicable standards and requirements established by the Trust.
(10) Disbursement. Disbursement of loan funds will be made as the project progresses based upon requests for disbursement submitted by the borrower in a form satisfactory to the Trust.
(11) Modification of Loan. In order to facilitate the successful completion or operation of a project, the Trust may modify:
(a) The rate of interest;
(b) The time or amount of payment; or
(c) Any other term of a loan.
(12) Acceleration of loan. In accordance with the terms of the loan documents, the Trust may accelerate the payment of the entire principal and interest due if the:
(a) Borrower defaults on the loan;
(b) Encumbrance of the deed of easement referred to in §C(4) of this regulation is extinguished by the foreclosure of a prior lien or otherwise; or
(c) Deed of easement referred to in §C(4) of this regulation or the preservation agreement referred to in §A(8) of this regulation is determined not to be legally enforceable by the Trust for any reason.
(13) Change of Ownership. The borrower may not sell, cease to own, assign, transfer, or dispose of all or any portion of the historic property during the term of the loan without the prior written consent of the Trust.
(14) Prepayment Penalty. The Trust may not charge a prepayment penalty.
(15) Other Requirements. The Trust may establish other terms and conditions in the loan documents as considered reasonable and necessary by the Trust.