J. MILLARD TAWES, GOVERNOR                               741

title "Debt—Public", sub-title "Public Securities", sub-heading
"Conditions Upon Sale of Public Securities" to change the defini-
tion of the political sub division authorized to issue certain public
bond anticipation notes. AMENDING THE LAWS CONCERNING
THE ISSUE OF BOND ANTICIPATION NOTES BY CERTAIN
POLITICAL SUB-DIVISIONS AND PUBLIC BODIES.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 12 of Article 31 of the Annotated Code of Maryland
(1960 Supplement), title "Debt—Public", sub-title "Public Securi-
ties", sub-heading "Conditions Upon Sale of Public Securities" be
and is hereby repealed and re-enacted, with amendments, to read as
follows:

12.

(a)  Any [political subdivision of this State] public body 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 bonds 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 revenue
which said [political sub-division] public body 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 there-
from of the expenses of the issuance thereof, shall be expended only
on the public purposes for which said bonds are authorized, pro-
vided, 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 subdivision] public body, which shall cite
the authority for said notes and bonds and the amount authorized,
shall fix the maturities, interest rates or the manner of determining
the same, and other terms of such bond anticipation 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 subdivision] public
body with a prospective purchaser or purchasers if deemed by said
[political subdivision] public body to be for its best interest. Said
resolution or ordinance 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 with-
out resale. All such notes shall be signed, endorsed or guaranteed
in the same manner as shall be provided by law for the bonds in
anticipation of which said notes are issued, and no such notes shall
be issued hereunder unless so signed, endorsed or guaranteed.

(b)    No such bond anticipation notes shall be issued and sold
hereunder unless said [political subdivision] public body shall, be the
resolution or ordinance authorizing said notes, covenant to pay the
same and the interest thereon from the proceeds of the bonds in
anticipation of the sale of which said notes are issued and shall
further covenant to issue said bonds when, and as soon as, the rea-
son for deferring the issuance thereof no longer exists.