Section 1837-B. Loans to local development corporations

1. No loan shall be
  made by the authority under the provisions of this subtitle with respect
  to an eligible project unless: (a) the local development corporation has
  obtained firm commitments satisfactory to the authority from responsible
  financial  sources,  which  may  include a federal agency or the project
  occupant, for the total project cost exclusive  of  any  loan  requested
  from the authority; (b) the local development corporation has obtained a
  firm  commitment satisfactory to the authority from the project occupant
  to lease or use the  project  after  it  has  been  completed;  (c)  the
  principal  amount  of  such loan is forty percent or less of the project
  cost, except as provided in paragraphs (a) and (b) of subdivision two of
  section eighteen hundred three and paragraph (a) of subdivision seven of
  section eighteen hundred twenty-three of this chapter; and (d)  if  such
  loan  is  secured  by  a mortgage on the project, such mortgage is not a
  junior encumbrance on the project by more  than  fifty  percent  of  the
  project cost.
    2.  No  loan  shall  be  guaranteed by the authority with respect to a
  project unless: (a) the project occupant has obtained  firm  commitments
  satisfactory  to  the  authority  from  banking  organizations  for  the
  financing of the project cost exclusive of the amount to be provided  by
  the  project  occupant;  (b) the authority is satisfied that the project
  occupant may be reasonably expected to comply with the terms of any loan
  for which a guarantee is sought; (c) the  amount  of  the  guarantee  is
  eighty  percent or less of the project cost; and (d) the loan is secured
  by a mortgage or security instrument which is not a  junior  encumbrance
  or  other  collateral  deemed  satisfactory  to  protect the authority's
  interest.