J. MILLARD TAWES, GOVERNOR 203
CHAPTER 73
(House Bill 130)

AN ACT to add a new section to Article 31 of the Annotated Code
of Maryland (1957 Edition), title "Debt—Public", sub-title "Public
Securities", said new section to be known as Section 48 12 of said
Article and to follow immediately after Section 17 11 thereof, pro-
viding authority to political sub-divisions in this State to issue
notes in anticipation of the issuance of bonds, from the proceeds of
which bonds said notes will be paid, and providing for the method
for the issuance and sale of said notes.

SECTION 1. Be it enacted by the General Assembly of Maryland,
That there is hereby added a new section to Article 31 of the Anno-
tated Code of Maryland (1957 Edition), title "Debt—Public", sub-
title "Public Securities", said new section to be known as Section
18 12 of said Article and to follow immediately after Section 17 11
thereof and to read as follows:

Section 48 12.

(a) Any political sub-division of this State now or hereafter
authorized to issue its bonds or other obligations for any proper
public purpose is hereby authorized and empowered at one time or
from time to time to issue and sell its bond anticipation notes, in
aggregate amount not greater than the authorized amount of the
bonds in anticipation of the sale of which said notes are issued and
sold, the principal of and interest on said notes to be made payable
to the bearer or registered holder thereof out of the first proceeds of
sale of said bonds, or from the tax or other revenues which said polit-
ical sub-division shall have previously determined to apply to the
payment of said bonds and the interest thereon. The proceeds of sale
of such notes, after payment therefrom of the expenses of the issu-
ance thereof, shall be expended only on the public purposes for which
said bonds are authorized, provided, however, that twelve (12)
months' interest on said notes, or any renewal thereof, may be paid
from said proceeds, accounting from the initial date of issue thereof.
Such notes shall be authorized by ordinance, resolution, or other form
of official action customarily used by such political sub-division,
which shall cite the authority for said notes and bonds and the
amount authorized, shall fix the maturities, interest rates or the man-
ner of determining the same, and other terms of such bond anticipa-
tion notes, the price or prices at which said notes will be sold, which
may be at, above or below the face value thereof, and the manner of
their sale, which may be by private negotiation by the political sub-
division with a prospective purchaser or purchasers if deemed by said
political sub-division to be for its best interest. Said resolution or or-
dinance may provide for the issuance of said notes, pursuant to such
sale, in series as funds are required, and may also provide for the
renewal of said notes at maturity with or without resale.

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EXPLANATION: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.

CAPITALS indicate amendments to bill.

Strike out indicates matter stricken out of bill.