1200                             Laws of Maryland                       Ch. 526

property, to the retirement system lending such acquisition price.
Such agreements may be entered into for the acquisition and financ-
ing as aforesaid of an individual parcel or of any number of parcels
within the limits of a contemplated [highway] transportation proj-
ect. Such mortgages shall provide for the payment of interest at a
rate, to be determined by the parties, payable annually to such
mortgagees, shall provide also that the duration of such mortgage
shall be for no longer than five (5) years subject to prepayment at
any time prior to the expiration of such five-year term, at the option
of the [Commission] Department upon payment 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 exceed ten (10%) percent of the com-
bined total assets of the retirement 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%) percent 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 in-
stances shall be determined by agreement between the [Director
of Highways] Secretary of Transportation and the trustees of the
particular system. The costs of acquisition including mortgage re-
cordation costs, title searches and court costs, if any, shall be
paid by the [State Roads Commission] Department of Transpor-
tation. Such agreements shall provide that the [Director of High-
ways, with the approval of the State Roads Commission] Secretary
of Transportation may redeem any mortgage hereunder at any
time prior to the letting of a [highway] transportation improve-
ment contract utilizing the property, and during the effective period
of such agreement the [Director] Secretary 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] Secretary shall redeem such first mortgages
of the retirement system in compliance with such agreements, and
for this purpose is authorized to use any funds available to the
[Commission] Department of Transportation, subject only to the
prior pledge of such moneys for the retirement of the State high-
way construction bonds or Consolidated Transportation bonds pro-
vided for under Article 94A of this Code.

(e)    Such agreements shall provide that the [State Roads Com-
mission] Department of Transportation shall have the sole and ex-
clusive use and management of such property during the time title is
held by said [Commission] Department and shall have the rights
to all rentals and any other income arising from the use of such
property. The [Director of Highways] Secretary of Transporta-
tion shall authorize the payment of all taxes, insurance premiums
and costs of maintaining such property while under the control of
the [State Roads Commission] Department of Transportation, and
shall save the retirement system harmless from any liability what-
soever in connection with management of such property.