2644

LAWS OF MARYLAND

Ch. 907

FOR the purpose of authorizing the creation of a State debt
in the amount of $5,000,000 $2,500,000, the proceeds to
be used to provide funds for the Maryland Housing
Rehabilitation Program; 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 Maryland Housing
Rehabilitation Loan of 1978 in the aggregate principal
amount of $5,000,000 $2,500,000. 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 3 1 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, to provide funds to the Maryland Housing
Rehabilitation Program to be used in accordance with §257L
of Article 41 of the Annotated Code of Maryland (1971
Replacement Volume and 1977 Supplement, as amended from time
to time).

(4)    Except for amounts required for administrative
costs, all repayments of principal and interest on loans
made from the proceeds of the bonds authorized to be issued
by this Act shall be used to repay the interest on and
principal of any bonds issued under this Act and made

pursuant to the provisions of §257L of Article 41, as

amended from time to time.

(5)    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 re discharged within fifteen years of the date
of issue of the bonds.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect June 1, 1978.

Approved May 29, 1978.