PARRIS N. GLENDENING, Governor

H.B. 1367

Community College Trustees for Garrett County from a certain provision
concerning certain lease purchase agreements; authorizing the Board of Community
College Trustees for Garrett County to enter certain lease purchase agreements
under certain circumstances; providing for the effective date of this Act; and
generally relating to the authority of the Board of Community College Trustees for
Charles County and Garrett County to engage in certain financing.

BY repealing and reenacting, with amendments,
Article - Education
Section 16-401.1
Annotated Code of Maryland
(1992 Replacement Volume and 1994 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Education

16-401.1.

(a)     Notwithstanding any other provisions of this subtitle, and subject to funds
being appropriated, the Board of Community College Trustees for CHARLES COUNTY.
GARRETT COUNTY, Howard County, Montgomery County, or Prince George's County
may borrow money to acquire an interest in personal property, including fixtures, for the
operation of the community college, on terms and conditions that the Board of Trustees
considers proper.

(b)     A borrowing under this section may be secured by the personal property
acquired or revenues derived from the property.

(c)     All multiyear financing agreements reflecting borrowing under this section
shall be subject to cancellation by the Board of Trustees at the end of a fiscal year if
sufficient funds are not appropriated to fund the agreement in subsequent years.

(d)     (1) Borrowing under this section does not create or constitute a debt or
obligation of the State or any political subdivision of the State other than a community
college.

(2) Borrowing under this section does not constitute a debt or obligation of
the General Assembly or pledge the faith and credit of the State within the meaning of
Article III, § 34 of the Maryland Constitution.

(e)     (1) THIS SUBSECTION DOES NOT APPLY TO THE BOARD OF COMMUNITY
COLLEGE TRUSTEES FOR GARRETT COUNTY.

(2) (I) Borrowing under this section shall be for the use of financing
intermediate term lease purchasing agreements.

[(2)] (II) The term of any lease purchase agreement entered into under this
section may not exceed the estimated life of the equipment subject to the financing
agreement.

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