preceding fiscal year equal at least two times maximum annual debt service on all Consolidated Transporta-
tion Bonds outstanding and to be issued and any then outstanding Maryland Port Authority loans and that
(ii) total proceeds from pledged taxes equal at least two times maximum annual debt service on all Consoli-
dated Transportation Bonds outstanding and to be issued and any then outstanding Maryland Port Author-
ity loans.

County Transportation Bonds are issued by the Department and the proceeds are used by participating
counties and Baltimore City to fund local road construction, reconstruction and other transportation projects
and facilities and to provide local participating funds for federally-aided highway projects. Debt service on
these bonds is payable from the counties' and Baltimore City's shares of highway user revenues.

As of June 30, 1980, Transportation bond debt service requirements for sinking fund deposits and prin-
cipal and interest payments (amounts expressed in thousands) in future years were as follows:

	Consolidated	County
	Transportation	Transportation Bonds	Consolidated	County	Total Transportation
Years ending	Sinking Fund	Sinking Fund	Transportation Bonds	Transportation Bonds	Bond Debt Service
June 30,	Deposits	Deposits	(Principal and Interest)	(Principal and Interest)	Requirements
1981	$41,998	$18,037	$2,970	$254	$63,259
1982	39,998	17,831	2,970	502	61,301
1983	39,998	17,781	2,970	507	61,256
1984	39,998	17,314	2,970	506	60,788
1985	39,998	15,779	2,970	505	59,252
1986	39,998	15,171	2,970	503	58,642
1987	13,737	5,466	2,970	500	22,673
1988			2,970	496	3,466
1989			9,732	497	10,229
1990			9,267	492	9,759
1991			8,812	491	9,303
1992			7,389	493	7,882
1993			6,996	489	7,485
1994			6,600	488	7,088
1995			6,201		6,201

On February 15 and May 25, 1978 the Department of Transportation issue Consolidated Transportation
Bonds, Refunding Series 1978 and County Transportation Bonds—First Issue Refunding Series 1978. The
net proceeds of these issues, after underwriters' discounts and other financing expenses, in principal
amounts aggregating $510,625,000 were used to purchase U.S. Government securities sufficient to fully pro-
vide for the timely payment of $500,585,000 Consolidated Transportation Bonds, State Highway Construc-
tion Bonds and County Transportation Bonds. As a result of these transactions, the refunded bonds are
deemed to be defeased and, accordingly, are no longer reported as long-term debt in the financial statments.

On July 15, 1980, Consolidated Transportation Bonds aggregating $60,000,000 were issued. The inter-
est rates on this issue range from 5.7% to 7.4% and the bonds mature serially through 1995. Also on July 15,
1980, the Department issued $60,000,000 of Consolidated Transportation Bond Anticipation Notes due July
15, 1981 and bearing interest ranging from 5.14% to 5.17%. In connection with these issues the Department
held a deposit from the purchasers of the debt in the amount of $1,200,000 at June 30, 1980.

On November 1, 1980 County Transportation Bonds aggregating $59,270,000 were issued. The interest
rates on this issue range from 7.75% to 8.4% and the bonds mature serially through 1995.

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