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9. General Obligation Bonds:
General obligation bonds are authorized and issued primarily to provide funds for state owned capital
improvements, including facilities for institutions of higher learning, and the construction of public schools in
political subdivisions. Bonds have also been issued for local governmental improvements, including grants and
loans for water quality improvement projects and correctional facilities, and to provide funds for repayable
loans or outright grants to private, not-for-profit cultural or educational institutions. Under constitutional
requirements and practice, the Maryland General Assembly, by a separate enabling act, authorizes a loan for a
particular object or purpose. Thereafter the Board of Public Works, a constitutional body composed of the
Governor, the Comptroller of the Treasury and the State Treasurer, by resolution authorizes the issuance of
bonds in a specified amount for part or all of the loan authorized by a particular enabling act.
General obligation bonds are backed by the full faith and credit of the State and, pursuant to the State
Constitution, they must be fully paid within 15 years from the date of issue.
General obligation bonds outstanding and bonds authorized but unissued (amounts expressed in thousands) as
of June 30, 1982 were as follows:
|
|
|
|
Authorized But
|
|
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Outstanding
|
|
Unissued
|
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Purpose
|
Interest Rates
|
Amount
|
Amount
|
|
General construction .............................
|
3.70% to 11.30%
|
$ 680,805
|
$327,894
|
|
Public school construction ........................
|
3.70% to 11.30%
|
1,050,765
|
131,350
|
|
Water quality ...................................
|
4.40% to 6.25%
|
116,255
|
127,479
|
|
Sanitary facilities and sewage treatment ...........
|
3.70% to 9.20%
|
14,475
|
6,705
|
|
Hospitals and nursing homes ......................
|
3.70% to 9.20%
|
10,610
|
|
|
Community colleges and vocational schools ........
|
3.70% to 5.75%
|
49,255
|
8,800
|
|
Airport development .............................
|
3.70% to 4.90%
|
20,080
|
|
|
Housing loans ....................................
|
4.25% to 11.30%
|
72,340
|
5,003
|
|
Maryland Port Authority loans ...................
|
3.70% to 11.30%
|
13,430
|
|
|
Other ...........................................
|
3.70% to 11.30%
|
179,645
|
191,902
|
|
|
|
$2,207,660
|
$799,133
|
As of June 30, 1982, general obligation debt service requirements for principal and interest (amounts
expressed in thousands) in future years were as follows:
|
Years Ending
|
|
Years Ending
|
|
|
June 30,
|
Total
|
June 30,
|
Total
|
|
1983
|
$317,415
|
1990
|
$244,031
|
|
1984
|
329,931
|
1991
|
204,394
|
|
1985
|
328,014
|
1992
|
135,361
|
|
1986
|
323,129
|
1993
|
87,798
|
|
1987
|
302,036
|
1994
|
64,681
|
|
1988
|
281,332
|
1995
|
52,501
|
|
1989
|
261,121
|
1996
|
39,323
|
|
|
|
1997
|
23,916
|
On July 1, 1982, General Obligation Bonds aggregating $140,495,000 were issued. The interest rates on
this issue range from 11.0% to 11.2% and the bonds mature serially through 1997. In connection with this
issue the state held a deposit from the purchaser of the debt in the amount of $2,810,000 at June 30, 1982.
On November 10,1982, General Obligation Bonds aggregating $126,735,000 were sold. The Interest rates
on this issue range from 8.3% to 8.4% and the bonds mature serially through 1997.
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