Ch. 228 LAWS OF MARYLAND

that the State may recover a certain portion of the State funds expended under
certain circumstances; and providing generally for the issuance and sale of bonds
evidencing the loan.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That:

(1) The Board of Public Works may borrow money and incur indebtedness on
behalf of the State of Maryland through a State loan to be known as the Nursing Home
Loan of 1990 in the aggregate principal amount of $300,000 $250,000. This loan shall be
evidenced by the issuance and sale of State general obligation bonds authorized by a
resolution of the Board of Public Works and issued, sold, and delivered in accordance
with §§ 8-117 through 8-124 of the State Finance and Procurement Article and Article
31, § 22 of the Code.

(2) The bonds issued to evidence this loan or installments thereof may be sold as
a single issue or may be consolidated and sold as part of a single issue of bonds under
§ 8-122 of the State Finance and Procurement Article.

(3) The actual cash proceeds of the sale of the bonds shall be paid to the
Treasurer and shall be first applied to the payment of the expenses of issuing, selling,
and delivering the bonds, unless funds for this purpose are otherwise provided, and
thereafter shall be credited on the books of the State Comptroller and expended, upon
approval of the Board of Public Works, for the following public purposes, including any
applicable architects' and engineers' fees: for State grants to public and other nonprofit
nursing homes for the construction, expansion, renovation, and equipping of these
nursing homes, including the reports, plans, specifications, site improvements, surveys,
and programs in connection therewith.

(4) (a) In this Act, the following terms have the meanings indicated.

(b) "Department" means the Department of Health and Mental Hygiene.

(c) "Facility" means a nursing home that is wholly owned by and operated
under the authority of:

(i) A county or municipal corporation, or both; or
(ii) A nonprofit organization,
(d) "Nonprofit organization" means:

(i) A bona fide religious organization, no part of the earnings of
which inures to the benefit of any individual or is used for any purpose other than the
maintenance and operation of the facility, the purchase of equipment to be used in the
facility, or the expansion of the facility; or

(ii) An organization:

1. That is chartered as a nonprofit corporation and classified
by the Internal Revenue Service as nonprofit; and

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