(a) Application fee. Each borrower under the Maryland Economic Development Revenue Bond Act shall pay to the Controller on submission of the application for initial funding or refinancing of an existing bond an application fee of $1,000 that shall be credited against the issuer fee if the loan is approved and closes.
(b) Issuer fee. Each borrower under the Maryland Economic Development Revenue Bond Act shall pay to the Controller an issuer fee calculated by bond counsel:
(1) at the time of closing on the economic development revenue bond loan in an amount equal to:
(i) a yield of 0.125% per year on the principal amount of bonds issued for new projects; or
(ii) 0.25% of the principal amount of bond proceeds approved for refunding; or
(iii) a combination of the amounts determined under subsections (b)(1)(i) and (b)(1)(ii) that is based on the portion of the loan used for new projects and refunding when the loan is used in part for new projects and in part for refunding; or
(2) in an amount equal to a yield of 0.125% per year on the principal amount of the loan at the times set forth in the loan documents.
(c) Limitation on amount of fees. The fees authorized under subsections (a) and (b) may not exceed the amount that is the maximum applicable arbitrage limitation established under § 148 of the Internal Revenue Code, as amended.
(Bill No. 30-08)