The series 1985 revenue bonds maturing after July 1, 1995 are subject to redemption, at the Authority's
option, beginning July. 1,1995. The redemption prices range, as a percentage of the principal amount, from 100%
to 102%. The bonds maturing July 1, 2016 are subject to redemption, at the Authority's option, beginning July 1,
1995 at a redemption price of 100%. A portion of the bonds maturing on July 1, 2005, $22,480,000, is subject to
redemption beginning in 2001. A portion of the bonds maturing July 1,2015, $97,870,000, is subject to redemption
beginning in 2006. The principal amortization requirements range from $4,930,000 to $14,975,000 per year. The
series 1989 revenue bonds are not subject to redemption prior to their maturity.

In compliance with the Trust Agreement dated December 1, 1985 underlying the Transportation Facilities
Projects Revenue Bonds, Series 1985, the Authority has established restricted accounts for the payments of debt
service related to the revenue bonds, major maintenance, project requirements and improvements, betterments,
enlargements or capital additions. Assets consisting of cash and short-term investments, $71,724,000; and
investments, $32,186,000; less current accounts payable, $19,307,000 have been restricted for such purposes.

At June 30,1990, $110,275,000 of revenue bonds are considered defeased.

In August 1981 the Authority entered into an agreement with the City of Baltimore to finance the
non-Federal share (approximately $78,000,000 plus related interest of approximately $31,000,000), associated
with the construction of the Fort McHenry Tunnel. The Authority placed approximately $96,000,000 from the
1985 bond issuance into an escrow account to cover these costs and expects to recover its costs through future net
toll revenues of the tunnel.

Maryland Environmental Service (Service):
Revenue Bonds:

The Service has issued revenue bonds for the construction of certain projects. The balance at June 30,1990 is
$13,510,000. Series 1985 bonds bear interest at 57% of prime, not to exceed 10.5%, and series 1990 bonds bear
interest at rates ranging from 5.9% to 6.9%. The bonds are collateralized by the assets and revenues of the
projects and any other revenues of the Service that are not otherwise pledged. All rights, title and interest in the
related property, plant and equipment remains with the Service until expiration or completion of the project and
repayment of the revenue bonds. Thereafter, title to the assets passes to the governmental unit served by the
projects.

State Use Industries:
Loans From Other Funds:

In July 1982 the General fund loaned State Use Industries $2,000,000. The loan bears no interest and is
repayable as operational earnings permit with no time limit. The fiscal year 1990 and 1989 budget laws contained
provisions whereby $500,000 of the loan would become null and void each year if State Use Industries increased
inmate employment by a certain level. This was accomplished, and accordingly, the loan was reduced each year by
$500,000. The balance at June 30,1990 is $945,000.

Maryland Stadium Authority (Authority):
Notes Payable:

In May, 1989 the Authority issued lease revenue notes to finance the acquisition of property for the
construction of the Stadium. The principal amount at June 30, 1990 is $17,450,000, with interest payable
semiannually at rates varying from 9.65% to 10% per annum. The notes mature serially in varying amounts
through 2019. A portion of the notes, aggregating $19,115,000, which matures December 15,1990, have monies
irrevocably deposited with a trustee in order to pay the principal and any related interest, and therefore, is
considered defeased.

51