The Department of Transportation, as lessor, leases space at various marine terminals, airport facilities and
office space pursuant to various operating leases. Minimum future rental revenues follow (amounts expressed in
thousands):

Years ending Noncancellable Operating Leases
___________________June 30___________________Minimum Future Rentals

1995.................................................... $ 61,648

1996.................................................... 40,964

1997.................................................... 32,162

1998.................................................... 22,526

1999.................................................... 19,846

2000 and thereafter......................... 71,658

$238,704

Total minimum future rental revenues do not include contingent rentals that may be received under certain
concession leases on the basis of a percentage of the concessionaire's gross revenue in excess of stipulated
minimums. Rental revenue was approximately $73,617,000 for the year ended June 30, 1994, including contingent
rentals of approximately $18,900,000.

As of June 30, 1994, the Maryland State Lottery Agency had commitments of approximately $57,146,000 for
services to be rendered relating principally to the operation of the lottery game.

As of June 30, 1994, the Maryland Stadium Authority had commitments of approximately $1,000,000 for
property and construction.

As of June 30, 1994, the higher education fund, a component unit, had commitments of approximately
$152,660,000 for the completion of projects under construction.

16. Contingencies:

The State is party to legal proceedings, which normally occur in governmental operations. The legal
proceedings are not, in the opinion of the Attorney General, likely to have a material, adverse impact on the
financial position of the State as a whole.

As of June 30, 1994, mortgage loan insurance programs included in the enterprise funds were contingently
liable as insurer of mortgage loans payable, or portions of mortgage loans payable, hi an aggregate amount of
approximately $811,220,000 (including $626,004,000 for the economic development loan programs). In addition,
there are commitments to insure mortgage loans which would represent additional contingent liabilities of
approximately $77,627,000.

The State will lease office space from the Industrial Development Authority of Prince George's County
(Authority), under a capital lease starting in fiscal year 1995. Construction of the building began during fiscal year
1994 and was financed with revenue bonds. The State's lease payments will equal the Authority's bond payments.
Future minimum payments under this capital lease are as follows (amounts expressed in thousands):

Years Ending
_____________________June 30________________________________Amount

1995.................................................................................................. $ 371

1996.................................................................................................. 556

1997.................................................................................................. 1,044

1998.................................................................................................. 1,042

1999.................................................................................................. 1,038

2000 and thereafter....................................................................... 11,353

Total future minimum payments................................................ 15,404

Less amount representing interest............................................. 5,419

_______ Present value of lease payments................................................___$ 9,985

The Maryland Higher Education Loan Corporation (Corporation), a component unit, as endorser of student
loans, is contingently liable to lending institutions for purchase of student loans in default. In the event of such
default, the Corporation is liable to the lending institution for the unpaid principal amount of the loan plus unpaid
interest, including interest accrued from the date of default until the date of purchase by the Corporation. As of
June 30, 1994, the Corporation has endorsed loans outstanding of approximately $1,050,000,000. These loans are
covered by a Federal reinsurance agreement with the U.S. Department of Education. The agreement provides for
repurchase by the U.S. Department of Education of 100% of the amount of loans which default; however, if the
default rate exceeds 5% of the loans in repayment status as of September 30 of the preceding year, the reinsurance
rate is 90%, and for all defaults in excess of 9% the reinsurance rate is 80%.

In 1985, the Maryland General Assembly enacted legislation creating the State of Maryland Deposit Insurance
Fund Corporation (MDIFC), an agency of the State Department of Licensing and Regulation and the successor by

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