Consolidated Transportation Bonds are paid from the transportation debt service fund except for the Bond
Anticipation Notes (none outstanding at June 30, 1991) which are paid from the proceeds of Consolidated
Transportation Bonds which are deposited in the special revenue fund. Principal of and interest on Consolidated
Transportation Bonds are payable from the proceeds of certain excise taxes levied by statute and the corporate
income tax as credited to the Department. These amounts are applicable to the extent necessary for that exclusive
purpose before being available for other uses by the Department. If those tax proceeds become insufficient to meet
debt service requirements, other receipts of the Department are available for that purpose. The holders of such
bonds are not entitled to look to other State resources for payment.

Under the terms of authorizing bond resolutions, additional Consolidated Transportation Bonds may be
issued, provided, among other conditions, that (i) total receipts (excluding federal funds for capital projects, bond
and note proceeds, income received from a sinking fund separately dedicated to the Refunding Bonds, and other
receipts not available for debt service), less administration, operation and maintenance expenses, for the
preceding fiscal year equal at least two times the maximum annual debt service on all Consolidated Transportation
Bonds outstanding and to be issued and that (ii) total proceeds from pledged taxes equal at least two times the
maximum annual debt service on all Consolidated Transportation Bonds outstanding and to be issued.

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.

By law, the Department may not issue County Transportation Bonds on behalf of a participant if such
participant's share of highway user revenues for the latest fiscal year is less than twice such participant's
maximum annual debt service on County Transportation Bonds.

The proceeds of transportation bonds issued after December 31, 1986 are subject to Federal regulations
governing the investment and use of proceeds of tax-exempt debt issuances.

During the year, Consolidated Transportation Bonds aggregating $310,000,000 were issued with a discount of
$3,002,000 and County Transportation Bonds aggregating $16,550,000 were issued with a discount of $166,000.

As of June 30,1991, Transportation bond debt service requirements for principal and interest in future years
were as follows (amounts expressed in thousands):

			Total
			Transportation
	Consolidated	County	Bond Debt
Years Ending	Transportation	Transportation	Service
June 30,	Bonds	Bonds	Requirements
1992 ......................................	$74,031	$26,393	$100,424
1993 ......................................	79,655	26,456	106,111
1994 ......................................	84,755	26,048	110,803
1995 ......................................	93,519	26,148	119,667
1996 ......................................	104,495	19,057	123,552
1997 ......................................	99,518	18,337	117,855
1998 ......................................	101,609	13,868	115,477
1999 ......................................	104,228	11,187	115,415
2000 ......................................	100,334	8,093	108,427
2001 ......................................	66,311	7,069	73,380
2002 ......................................	68,332	5,801	74,133
2003 ......................................	73,460	3,743	77,203
2004 ......................................	74,982	2,927	77,909
2005 ......................................	76,1H	1,829	77,940
2006 ......................................	41,664		41,664

At June 30, 1991, $538,745,000 of outstanding Consolidated Transportation Bonds, State Highway
Construction and County Transportation Bonds are defeased and, therefore, are not included as long-term debt in
the accompanying financial statements.

On September 1, 1991, Consolidated Transportation Bonds aggregating $120,000,000 were issued with a
discount of $1,187,000. The interest rates on this issue range from 5.7% to 6.375% and mature serially through
2006. On October 30,1991, County Transportation Bonds aggregating $8,300,000 were issued with a discount of
$83,000. The interest rates on this issue range from 4.6% to 6.2% and mature serially through 2006.

48