Marvin Mandel, Governor                        1619

in the discretion of the Board of Public Works; and the accrued inter-
est between the date of the bonds and the date of delivery of and the
payment for said bonds shall be adjusted with the purchaser thereof
under such procedures as may be made DETERMINED in the discre-
tion of the Board of Public Works; and upon the day mentioned in
said advertisement as the date for opening the bids, they shall receive
such sealed proposals for the purchase of as many of such bonds as
may be mentioned or designated in said advertisement; and on the
opening of such sealed proposals, as many of said bonds as have been
so bid for shall be awarded by the Board of Public Works to the
highest responsible bidder or bidders therefor for cash offering the
lowest net interest cost to the State, and if two or more responsible
bidders have made bids resulting in the same lowest net interest
cost to the State, then said bonds shall be awarded by lot to one
of such responsible bidders;. IF NO BID IS RECEIVED, or if the
Board of Public Works in the exercise of its discretion determines
that no bid is satisfactory and that it is in the best interests of the
State that all bids be rejected, the Board may reject all bids and
may thereafter negotiate the sale of any part or all of said bonds at
a private sale upon the best terms as to price, rates of interest and
dates of payment within the limits of Article III, Section 34 of the
Constitution of Maryland that can be obtained for the same.

Sec. 4. And be it further enacted, That so much thereof as may be
necessary shall be paid by the Treasurer of the State upon the war-
rant of the Comptroller out of the proceeds of the sale of said bonds
for the payment of the expense of engraving, printing and other
outlays connected with the issue of the loan hereby authorized, and
for the payment of the advertising directed by this Act, and all
other incidental expenses connected with the execution of its provi-
sions in connection with said loan.

Sec. 5. And be it further enacted, That the actual cash proceeds
of the sale of the bonds to be issued under this Act shall be paid
to the Treasurer of the State upon the warrant of the Comp-
troller and such proceeds shall be used exclusively for the following
purposes, to wit:

1.    The Comptroller, immediately upon the sale of and payment
for said bonds, first, shall return to and credit the Treasury for a
sum equivalent to the amount expended under Section 4 of this Act.

2.    The remainder of the proceeds of such loan shall be credited
on the books of the State Comptroller, to be expended as needed by
the State, upon approval by the Board of Public Works, to provide
funds for a loan to be made to Anne Arundel County, Maryland to
assist in financing the County's share of capital costs incurred in
constructing a water line or lines serving Anne Arundel County
and other areas, the terms and conditions of such loan to be
mutually agreed upon by the Board and the County, provided (1)
that the principal of such loan, together with interest thereon, shall
be repaid in full to the State over a period of twenty years from the
time the loan funds are paid out, such payments of principal and
interest to commence at the expiration of the fifth year of such
period in accordance with a repayment schedule approved by the
Board, and (2) that any such loan shall bear interest at an annual
rate which equals the net interest cost to the State of the sale of its