1916

LAWS OF MARYLAND

Ch. 698

and low income citizens of Maryland; and providing
generally for the issuance and evidencing of such
loan.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That:

(1)   The Board of Public Works may borrow money and
incur indebtedness on behalf of the State of Maryland
through a State loan to be known as the Home Financing
Loan of 1976 in the aggregate principal amount of
$10,000,000. This loan shall be evidenced by the
issuance and sale of State general obligation bonds
authorized by a resolution of the Board of Public Works
and issued, sold and delivered in accordance with the
provisions of Sections 19 to 23 of Article 31 of the
Annotated Code of Maryland (1971 Replacement Volume and
1975 Supplement, as amended from time to time).

The bonds issued to evidence this loan or
installments thereof may be sold as a single issue, or
may be consolidated and sold as part of a single issue of
bonds under Section 2B of Article 31 of the Code.

(2)   The actual cash proceeds of the sale of the
bonds shall be paid to the treasurer and shall be first
applied to the payment of the expenses of issuing and
delivering the bonds , unless funds for this purpose are
otherwise provided, and thereafter shall be credited on
the books of the State Comptroller and expended, upon
approval by the Board of Public Works, for the following
public purposes, including any applicable architects' and
engineers' fees:

(a) to be used as needed by the State, upon
approval of the Board of Public Works, to provide a fund
to make loans to certain citizens of Maryland to purchase
homes pursuant to the provisions of Sections 266FF-1
through 266FF-4 of Article 41 of the Annotated Code of
Maryland.

(3)   Except for the amounts required for
administrative costs, all payments of principal and
interest on loans made from the proceeds of the bonds
authorized to be issued by this Act and made pursuant to
the provisions of Sections 266FF—1 through 266FF—H of
Article 11, shall be used to repay the interest on and
principal of any bonds issued under this Act.

(4)    There is hereby levied and imposed an annual
State tax on all assessable property in the State in rate
and amount sufficient to pay the principal of and
interest on the bonds as and when due and until paid in
full, such principal to be discharged within fifteen
years of the date of issue of the bonds.

(5)    This Act shall take effect June 1, 1976.