590                              Laws of Maryland                       [Ch. 432

(ii) There shall next be determined the total amount of State
debt which could be serviced at prevailing debt service cost by the
amount allocable to each of the counties and to the City of Baltimore,
as more specifically provided in the last preceding sentence of this
sub-paragraph.

(iii) The amount of total State debt allocable to each of the
counties and to the City of Baltimore, as provided in the last pre-
ceding sentence of this sub-paragraph, shall be the limit of par-
ticipation for each of the counties applying for financial assistance
under the terms of this Act and for the City of Baltimore if said
City applies for financial assistance under the terms of this Act.

(d)   The calculations more particularly outlined in this sub-
paragraph shall be made as of the date when the application for
financial assistance made by any of the counties or made by the City
of Baltimore has been received by the State Board of Education.

(e)  Each of the counties and the City of Baltimore whose request
for financial assistance has been allowed, as provided in sub-para-
graph (b) of this sub-section (but as limited by sub-paragraph (c)
of this sub-section), shall execute and acknowledge in a manner ac-
cording to law an agreement which shall specify that! (1) the
amount of financial assistance allowed, as provided herein, together
with interest and carrying charges, shall be deducted by the Comp-
troller of the Treasury from funds due said counties and City under
applicable provisions of State law relating to the income tax, the
tax on racing, the recordation tax, the tax on amusements, the license
tax and the incentive fund for school buildings and shall be so
deducted within fourteen (14) years from the date of the issuance
of the certificates; and (2) such other terms and conditions as may
be required by regulation of the State Board of Education, and ap-
proved by the Board of Public Works.

(f)  The agreement described in sub-paragraph (d) of this sub-
section shall be signed on behalf of the State of Maryland by the
State Board of Education, and shall be approved by the Board of
Public Works.

(g)   The governing body of each of the counties in this State and
the Mayor and City Council of Baltimore are hereby authorized and
empowered to enter into any and all contracts or agreements re-
quired under the terms of this Act, or which may be required by
regulations duly promulgated by the State Department of Education
or the Board of Public Works pursuant to the provisions of this Act,
any other provisions of public general law or of public local law
to the contrary notwithstanding.

Sec 6. And be it further enacted, That all proceeds deducted
from the counties of this State which have been granted financial
assistance under the provisions of this. Act and from the City of
Baltimore if said City has been granted financial assistance under
this Act, under agreements signed with the aforesaid counties or
the aforesaid City, all as more particularly provided in Section 5 of
this Act, shall be deposited in a reserve fund by the State Comptrol-
ler; such reserve fund to be only used for the payment of the prin-
cipal and interest on any and all certificates issued by the State of
Maryland pursuant to the terms of this Act.