Sec. 26.10.12.08. Loan Processing Procedures

A. Loan Processing Form.

(1) When, based on the ranking of a project under Regulation .07 of this chapter, an application is ready to be processed, the Department shall notify the applicant to submit a current loan processing form that includes the information required under §A(2)-(7) of this regulation and any other relevant information the Department requests.

(2) General Information. An applicant shall provide the following information:

(a) Applicant's name, social security or federal tax identification number, address, and telephone number;

(b) Outstanding lawsuits or administrative actions against the applicant or involving the site at which the underground storage tank or tanks are located;

(c) Type of business, such as a retail service station, marina, or bus company;

(d) Name of owner of the real estate where the underground storage tank or tanks are located; and

(e) Type of interest in real property or other contractual right which authorizes the applicant to install the underground storage tank or tanks.

(3) If the information requested in §A(2) of this regulation has been previously provided in the loan application, the information need not be resubmitted. All changes or previously omitted information shall be provided.

(4) Technical Information. An applicant shall provide the following information:

(a) General description of the work to be performed;

(b) Map or sketch of the location where work is to be performed, showing location of existing underground storage tanks to be upgraded or replaced and location of any new underground storage tanks that are to be installed;

(c) Anticipated annual gallons pumped, by product type;

(d) Contractor or contractors to perform the work, if known; and

(e) Copies of inventory records for the preceding 3 months or the most recent release detection results, as required under COMAR 26.10.05.

(5) Financial Information. An applicant shall provide information satisfactory to the Department to properly underwrite the loan, which may include:

(a) Current and historical (3 years) balance sheets;

(b) Current and historical (3 years) profit and loss statements;

(c) Personal financial statement of the person or persons with a principal controlling interest in the applicant;

(d) Credit references;

(e) Existing loans associated with the facility, to include:

(i) Amount,

(ii) Collateral,

(iii) Term,

(iv) Interest rate, and

(v) Creditor name, address, and contact;

(f) Evidence of payment of applicable taxes; and

(g) Federal tax returns for the applicant and the person or persons with a principal controlling interest in the applicant.

(6) Organizational Documents. The Department may require an applicant to provide:

(a) A copy of the articles of incorporation filed with the state of incorporation;

(b) Bylaws;

(c) Partnership agreement; or

(d) Other organizational documents.

(7) An applicant shall provide other relevant information the Department requests.

B. Loan Approval.

(1) Upon receipt by the Department of the completed loan processing form, the Secretary may recommend that the Board of Public Works award a loan to an eligible applicant under the Program when the Department determines that all of the following requirements are met:

(a) An environmental audit, if required by the Department pursuant to Regulation .06I of this chapter, supports, or does not materially adversely affect, the decision to make the loan;

(b) The sources of repayment and the collateral or other security are sufficient for the proposed loan; and

(c) Funds are available to meet the funding request.

(2) Either after the award of a loan by the Board of Public Works or before and subject to the award, the Department shall issue a commitment letter to the applicant, setting forth the maximum amount of the loan and the terms and conditions, including expiration dates, upon which the Department is obligated to make the loan. The Department is not obligated to make any loan or take any further action on a loan unless an applicant executes and returns a copy of the commitment letter to the Department.

C. Loan Documents.

(1) The Department shall prepare and provide the applicant with copies of relevant standard form loan documents.

(2) The loan documents shall include:

(a) The rate of interest on the loan;

(b) The term and amount of the loan;

(c) Requirements with respect to the disbursement of the loan proceeds, which shall include the requirement that the borrower provide the Department with documentation, satisfactory to the Department, of the application of the loan proceeds in accordance with the loan agreement for costs that are eligible for funding with a loan made under Environment Article, Title 4, Subtitle 6, Annotated Code of Maryland;

(d) Provisions for repayment of the loan; and

(e) Other provisions the Department determines are necessary or appropriate, including the taking of liens and security interests in real and personal property.

(3) Loan documents may include:

(a) A promissory note;

(b) A loan and security agreement;

(c) Personal and corporate guarantees;

(d) Deeds of trust;

(e) Assignments of life insurance policies;

(f) Financing statements; and

(g) Other documents the Department may require.