SPIRO T. AGNEW, Governor                        977

11.

(a) (2) A payment bond executed by a surety company author-
ized to do business in this State satisfactory to the public body for
the protection of all persons supplying labor and materials to the
contractor or his subcontractor in the prosecution of the work pro-
vided for in the contract for the use of each such person. The bond
shall be in the amount not less than fifty per centum (50%) of the
total amount payable by the terms of the contract. Any contractor
covered by such a bond shall not be required to furnish a waiver of
mechanics' liens to the State. Any contractor prior to receiving a
progress or final payment under a contract covered hereunder shall
certify in writing that he has made payment from proceeds of prior
payments, and that he will make timely payment from the proceeds
of the progress or final payment then due him, to his subcontractors
and suppliers in accordance with his contractual arrangements with
them.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1968.

Approved May 7, 1968.

CHAPTER 526
(Senate Bill 256)

AN ACT to repeal and re-enact, with amendments, Section 277 (o)
and 278 of Article 81 of the Annotated Code of Maryland (1965
Replacement Volume), title "Revenue and Taxes," subtitle "Re-
cordation Tax," to CHANGE the rate of the recordation tax appli-
cable within Harford County to instruments recorded with the
clerk of the court for the county, to provide for the disposition of
the proceeds from the additional tax rate authorized by this Act
and to provide for the subdivision of Section 278.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 277(o) and 278 of Article 81 of the Annotated Code
of Maryland (1965 Replacement Volume), title "Revenue and Taxes,"
subtitle "Recordation Tax," be and they are hereby repealed and
re-enacted, with amendments, to read as follows:

277.

(o) The rate of tax applicable to instruments recorded with the
Clerk of the Circuit Court for Harford County shall be as follows:
In the case of instruments conveying title to property, the tax shall
be at the rate of $2.20 for each $500 or fractional part thereof of
the actual consideration paid or to be paid; in the case of instru-
ments securing a debt the tax shall be at the rate of $2.20 for each
$500 of the principal amount of the debt secured; and after May
JULY 1, 1968, an additional tax on such instruments shall be im-
posed at the rate of 556 or fractional part thereof of actual consid-
eration or debt secured.