1318

LAWS OF MARYLAND

[Ch. 262

thereof as may be necessary shall be paid by the
Treasurer of the State upon the warrant 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 provisions in
connection with said loan.

SECTION 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 Comptroller and such
proceeds shall be used exclusively for the following
purposes, to wit:

(a)   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.

(b)   Not more than Ten Million Dollars ($10,000,000)
of the proceeds of such loan may be expended to provide
State grants to assist in the construction, extension,
and improvement of existing public sanitary sewer systems
and where necessary, in the judgment of the Board of
Public Works, for the construction of temporary sewage
treatment plants and related facilities to abate or
prevent health hazards arising out of the failure or
inadequacy of existing individual sewerage systems as of
the effective date of this Act, subject to the following
conditions and limitations:

(1) The project must be for an approved
sewerage service area in the county water and sewerage
plan adopted by the County governing body and approved by
the State Department of Health and Mental Hygiene
pursuant to the provisions of Section 387C of Article 43
of the Annotated Code of Maryland, as amended from time
to time; and

(2) The sewerage system must meet all
requirements and regulations of the State and have the
final approval of the State Department of Health and
Mental Hygiene pursuant to Section 394 of Article 43 of
the Annotated Code of Maryland, as amended from time to
time; and

(3) Either (A) the project is ineligible for a
Federal grant or (B) a timely and sufficient Federal
grant is not available for such project. Even though a
project may be ineligible for a Federal grant, it must