BONDED INDEBTEDNESS

Fiscal Year 1971

Bonds	Bonds		Bonds	Interest	Bonds	Bonds Authorized
Outstanding 6/30/70 %	Issued During Year %		Redeemed During Year %	Paid During Year %	Outstanding 6/30/71 * %	But Unissued 6/30/71* %
GENERAL OBLIGATION
BONDS:
General Construction Bonds $165,965,148 29	$45,735,000 23		$17,813,269 42	$5,321,405 26	$193,886,879 27	$279,912,964 38
Local Purpose
and Other Bonds ........... 182,335,000 32	99,880,000 51		8,560,000 20	6,974,422 34	273,655,000 38	235,382,943 31
General Public School
Construction Bonds .......... 181,001,000 32	40,105,000 21		15,453,000 37	6,465,460 32	205,653,000 29	166,025,000 22
State Agency and Political Subdivision Bonds ......... 38,913,852 7	9,000,000 5		276,731 1	1,496,809 8	47,637,121 6	64,250,000 9
TOTAL GENERAL
OBLIGATION BONDS ....$568,215,000 100	$194,720,000 100		$42,103,000 100	$20,258,096 100	$720,832,000 100	$745,570,907 100
STATE ROADS COMMISSION
OF MARYLAND (SPECIFIC
TAX REVENUE BONDS):
State Highway Construction Bonds .......... $266,300,000 92			$19,600,000 89	$9,000,375 93	$246,700,000 91	$113,300,000 100
County Highway Construction Bondsf ......... 22,704,000 8	$4,665,000 100		2,466,000 11	716,719 7	24,903,000 9
TOTAL LIMITED
OBLIGATION BONDS $289,004,000 100	$4,665,000 100		$22,066,000 100	$9,717,094 100	$271,603,000 100	$113,300,000 100
The tax supported Public Debt of the State of Maryland is divided into two major categories: General obligation bonds that carry the full faith and credit of the State; and limited obligation bonds issued by the State Roads Commission and payable out of highway revenue. Both of these categories of bonds are redeemed over a period of fifteen years and are well secured by dedicated revenues. However, under the 1964 legislative enactment of the Hospital Construction Loan participating voluntary non-profit hospitals are to repay these loans to the State over a period of forty years and the funds necessary to cover the resultant difference between bond redemption and loan repayment are obtained from the State's property tax levy. Other enactments by the General Assembly have authorized repay- able loans for Area Redevelopment, Airport Redevelopment, and Sanitary Facilities and Sewer Construction. These loans are to be repaid to the State over periods from 15 to 30 years. Of the total bonds outstanding at 6/30/71 $48,156,000 is represented by loans that will be repaid to the State. Along with the authorization of the Outdoor Recreation Land Loan of 1969, the General Assembly enacted an additional one-half of one percent upon every written instrument conveying Title to Real Property offered for record and recorded in the State for redemption of principal and interest on Bonds issued under the program "Open Space." General Obligation Bonds are further categorized and secured by revenues as follows: A. General Construction Bonds and Local Purpose Bonds, represent- ing 65% of the Bonds outstanding, are fully secured by the revenue from the State Real and Personal Property Taxes. B. General Public School Construction Bonds, representing 29% of the Bonds outstanding, are secured by revenues as follows: 1. Payment of principal and interest on bonds issued by the State prior to January 1, 1958 is made by the Coun- ties and Baltimore City to the State from local taxes levied. 2. Payment of principal and interest on bonds issued by the State on and after January 1, 1958 is made through deductions by the Comptroller of the Treasury from funds due said Counties and Baltimore City under the applicable provisions of State Law relating to the In- come Tax, the Tax on Racing, the Recordation Tax, the Tax on Amusements, the License Tax and School Build- ing Construction Aid Program. These payments are to be made within fourteen years from the date of the issuance of the Bond Certificates. 3. If there is not enough revenues from sources indicated in paragraphs one and two above to cover principal and interest, the difference must be included by the State in the Real and Personal Property Tax levy. C. State Agency and Political Subdivision Bonds, representing 6% of the Bonds outstanding, are secured by revenues as follows: 1. On bonds issued covering construction for the Depart- ment of Motor Vehicles and the Department of Mary- land State Police, payment of principal and interest is made to the State from fines and other receipts of the Department of Motor Vehicles.		2. On bonds issued for the Maryland Port Authonty, pay- ments of principal and interest is made to the Stats from the % of 1% distribution of Corporation Incoms Tax. 3. On bonds issued covering construction for the Depart ment of Employment Security, payment of principal am interest is made to the State from annual rent received from the United States Department of Labor. 4. If there is not enough revenue from sources indicated in paragraphs one thru three above to cover principal and interest, the difference must be included by the State the Real and Personal Property Tax levy. All monies received from the State Real and Personal Property Taxes and all payments received from State Agencies and Political Subdivisions as outlined above are place in the Annuity Bond Fund which is set up with separate account for each Bond Act enacted by the General Assembly. All principal and interest on General Obligation Bonds is paid from this fund. State Roads Commission Bonds are limited obligation bonds and are repayable from specified tax revenues. These bonds fall into twc classifications and are secured by revenues as follows: A. State Highway Construction Bonds. The principal and interest on these bonds is paid from thf following sources: 1. That portion of the proceeds of the excise tax on the issuance of certificates of title of motor vehicles as is represented by a rate of 3% of the fair market value ol motor vehicles. 2. Since 7/1/69, the portion of the 60% share of the Gasoline Tax Fund represented by the proceeds of the 7c Gasoline Tax. Prior to 7/1/69 this was 50% of the Gasoline Tax Fund plus all of the additional 1c per gallon Gasoline Tax imposed by the 1964 Laws of Mary- land. B. County Highway Construction Bonds. The principal and interest on the bonds is paid from the following sources: Since 7/1/69, this is the 20% portion of the 7tf pei gallon Gasoline Tax Fund and 20% of the portion of the Motor Vehicles Revenue Fund distributable to Counties and Municipalities within Counties and Titling Tax represented by a rate of 3% of the fair market value ol motor vehicles. Prior to 7/1/69 this was 20% portion oi the 6c per gallon Gasoline Tax Fund plus 20% of the Motor Vehicles Revenue Fund distributable to Counties and Municipalities within Counties. Funds necessary to meet the Debt Service Requirements on these Bonds must be transferred, by the Comptroller, to the Sinking Funds set up for their retirement prior to the use of these revenues for any other purpose or their distribution, by the State Roads Commission, to the Counties and Municipalities within Counties.

* Included in General Obligation Bonds Authorized but unissued at 6/30/71 is $263,203,200.00 authorized by the General Assembly during the 1971
Session.

+ Statutory authorization for issuance of County Highway Construction Bonds expired at 6/30/68. Additional authorization for a Second Issue was
enacted by the legislature effective 7/1/69. The First Series of the Second Issue was issued 9/1/70. County Highway Construction Bonds may be issued
for any county so long as debt service requirements for the issue do not exceed one-half the county's annual allocation of Highway User Revenue.