J. MILLARD TAWES, Governor                     1235

and 568G(a) of Article 43 of the Annotated Code of Maryland
(1964 Supplement), title "Health," subtitle "Hospitals," subhead-
ing "Maryland Hospital Commission," clarifying that the maxi-
mum interest rate which may be charged on a hospital loan made
under said chapter shall be 4 1/8%; providing for payment into the
Annuity Bond Fund of unexpended loan funds and payments of
principal and interest on loans to hospitals; in connection with
meeting annual debt service requirements of "Hospital Construc-
tion Loan of 1964," clarifying the levy procedure to be followed
after the change in State taxable year beginning July 1, 1966;
clarifying the basis for determination of the rate of interest to be
charged on a hospital loan; and clarifying the definition of volun-
tary, nonprofit hospitals.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 5 and 6 of Chapter 138 of the Laws of Maryland of
1964, known as the "Hospital Construction Loan Act of 1964," be
and they are hereby repealed and re-enacted, with amendments, to
read as follows:

5.

The actual cash proceeds of the sale of the Certificates of Indebted-
ness to be issued under this Act shall be paid to the Treasurer of
the State upon the warrant of the Comptroller, and such proceeds
shall be used exclusively for the following purposes, to wit:

The Comptroller shall, immediately upon the sale of and payment
for said certificates, first return to and credit the Treasury for a sum
equivalent to the amount expended as provided for in Section 4 of
this Act; the remainder of the proceeds of said loan shall be credited
on the books of the State Treasury Department, to be used as needed
by the State, upon approval by the Board of Public Works, and in
accordance with the provisions of the subheading "Maryland Hospital
Commission," in the subtitle "Hospitals," in Article 43 of the An-
notated Code of Maryland, for loans to be made to voluntary, non-
profit hospitals for the construction, expansion, relocation, replace-
ment or modernization of their hospital buildings, facilities and
equipment. For the purposes of these expenditures, the provisions
and requirements of said subheading are incorporated with this sec-
tion. No loan made hereunder shall be made at a rate of interest
greater than four and one-eighth per centum [(4%)] (4 1/8%) per
annum.

At any time after June 30, 1970, the Board of Public Works may
direct that all loan funds constituting part of the proceeds of cer-
tificates of indebtedness issued under this Act and not previously
or then expended, granted or contracted for shall be transferred to
the Annuity Bond Fund and shall be applied to the debt service
requirements of the State; and all payments of principal and interest
received by the State on account of loans made to hospitals under
this Act shall be placed in the said Annuity Bond Fund and so applied.

6.

Until all of the interest on and principal of any certificates issued
under this Act have been paid in full, there is hereby levied and
imposed an annual State tax on each $100 of assessable property, at