BLAIR LEE III, Acting Governor

2331

CHAPTER 796

(House Bill 923)

AN ACT concerning

Creation of a State Debt — State Public School
Construction and Capital Improvement Loan of 1978

FOR the purpose of authorizing the creation of a State Debt
in the amount of $60,000,000 $57,000,000, the proceeds
to be used to finance the construction of public school
buildings and public school capital improvements in
this State; and providing generally for the issue and
sale of bonds evidencing the 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 State Public School
Construction and Capital Improvement Loan of 1978 in the
aggregate principal amount of $60,000,000 $57,000,000. 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 §§ 19 to 23 of Article 31
of the Annotated Code of Maryland (1976 Replacement Volume
and 1977 Supplement, as amended from time to time).

(2)    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 § 2B of Article 31 of the Code.

(3)    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: financing
the construction of public school buildings and public
school capital improvements in this State in accordance with
the provisions of Section 130A of Article 77 of the
Annotated Code of Maryland (1975 Replacement Volume and 1977
Supplement), as from time to time amended or replaced or
revised in an education article.

(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.