1282                           LAWS OF MARYLAND                      [CH. 642

CHAPTER 642
(House Bill 14)

AN ACT to repeal and re-enact, with amendments, Sections 266L,
266-0, 266R, 266S, 266X and 266Z of Article 41 of the Annotated
Code of Maryland (1965 Replacement Volume and 1966 Supple-
ment) , title "Executive and Administrative Departments," subtitle
"Industrial Buildings for Counties and Municipalities," revising the
laws now providing for industrial buildings for counties and munic-
ipalities so as to unconditionally pledge the faith and credit of the
State of Maryland to the insurance undertaking of the Maryland
Industrial Development Financing Authority, to include "construc-
tion mortgages" in the definition of "mortgage," to define more
clearly the duties of the Authority in the event of a default under
any insured mortgage, to provide for investment of funds belonging
to the Authority by the State Treasurer, to provide for negotiability
of insured mortgages and to provide for the maintenance of the
mortgage insurance fund at a level deemed adequate by the Au-
thority by imposing duties upon the members of the Authority,
including authorization for the creation of a State debt in the aggre-
gate amount of thirty million dollars ($30,000,000), the proceeds
thereof to be used exclusively for the purpose of providing additions
to the mortgage insurance fund and when this authorization may be
used, and providing generally for the issuance and sale of certifi-
cates of indebtedness evidencing such loan.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 266L, 266-0, 266R, 266S, 266X and 266Z of Article 41
of the Annotated Code of Maryland (1965 Replacement Volume and
1966 Supplement), title "Executive and Administrative Depart-
ments," subtitle "Industrial Buildings for Counties and Municipali-
ties," be and they are hereby repealed and re-enacted with amend-
ments, to read as follows:

266L.

The Maryland Industrial Development Financing Authority is
authorized to insure the payment of mortgage loans secured by in-
dustrial projects, and to this end the faith and credit of the state are
hereby pledged [, consistent with the terms and limitations of the
terms of this subtitle]. TO THE EXTENT OF THIRTY MILLION
DOLLARS ($30,000,000).

266-O.

As used in this subtitle the following words and terms have the
following meanings and unless the context indicates another or
different meaning or intent:

(1) "Cost of project" means the aggregate costs incurred after
the approval of a loan determined by the Authority to be reasonably
necessary to the construction, acquisition, rehabilitation, or improve-
ment of a project, including, without intending thereby to limit the
generality of such costs: the cost of acquiring real property therefor;
the cost of constructing or reconstructing buildings and improve-
ments thereon, including, to the extent such costs are not borne by
the municipality, county, or other taxing district within which the
project is located, the cost of constructing means of access to and