SPIRO T. AGNEW, Governor                           29

of such five year term, at the option of the commission, upon pay-
ment of principal and interest to the date of prepayment. Each
such mortgage may not extend beyond five years from the date
it is entered into. The total amount to be loaned hereunder by the
retirement system for the five year period beginning June 1, 1967,
and for any succeeding five year period, may not at any time ex-
ceed ten (10%) per cent of the combined total assets of the retire-
ment systems, nor may the amount loaned in any one year exceed
one-fifth of such total amount. The total amount loaned by any
one of the retirement systems may at no time exceed ten (10%)
per cent of its assets. Such property may be acquired by purchase
or condemnation under the provisions of Article 33A or Article
89B of the Annotated Code of Maryland.

(c)    The retirement system mortgagee in any particular instances
shall be determined by agreement between the director of highways
and the trustees of the particular system. The costs of acquisition
including mortgage recordation costs, title searches and court costs,
if any, shall be paid by the State Roads Commission. Such agree-
ments shall provide that the director of highways, with the approval
of the State Roads Commission, may redeem any mortgage hereunder
at any time prior to the letting of a highway improvement contract
utilizing the property, and during the effective period of such agree-
ment the director shall redeem the mortgage upon such property
whenever such a highway contract is let, or upon the expiration of
five years from the mortgage execution date, whichever date is
earlier, and these mortgages will include the full faith and credit
of the State of Maryland.

(d)    The director shall redeem such first mortgages OF the retire-
ment system in compliance with such agreements, and for this purpose
is authorized to use any funds available to the Commission, subject
only to the prior pledge of such moneys for the retirement of the
state highway construction bonds.

(e)    Such agreements shall provide that the State Roads Com-
mission shall have the sole and exclusive use and management of
such property during the time title is held by said commission and
shall have the rights to all rentals and any other income arising from
the use of such property. The director of highways shall authorize
the payment of all taxes, insurance premiums and costs of main-
taining^ such property while under the control of the State Roads
Commission, and shall save the retirement system harmless from
any liability whatsoever in connection with management of such
property.

(f)    Such agreements may contain any other provisions agreed
upon by the director of highways and the retirement system which
are necessary to carry out the purpose of such agreements as indi-
cated in this section.

(g)    The property covered by such agreements may be managed,
controlled, used, rented, or leased by the State Roads Commission
or may be managed by any person, firm, partnership, association, or
corporation under contract with the director of highways or may
be operated by the department through its right-of-way division.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1967.

Passed over Governor's Veto, June 22, 1967.