BLAIR LEE III, Acting Governor

2645

CHAPTER 908

(House Bill 919)

AN ACT concerning

Creation of a State Debt - Housing Fund

FOR the purpose of authorizing the creation of a State debt
in the amount of $10,000,000 $5,000,000 $7,500,000, the
proceeds to be used as a reserve for the Maryland
Housing Fund; 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
Fund loan of 1978 in the aggregate principal amount of
$10,000,000 5,000,000 $7,500,000. This loan shall be
evidenced by the issuance and sale of State general
obligation bends authorized by a resolution of the Board of
Public Works and issued, sold and delivered in accordance
with the previsions 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
bends unless funds for this purpose are otherwise provided
and thereafter shall be credited on the books of the State
Comptroller and maintained, together with all interest
earned and net gains realized from the investment and
reinvestment thereof, as a reserve for the Maryland Housing
Fund established by §257K of Article 41 of the Annotated
Code of Maryland (1971 Replacement Volume and 1977
Supplement, as amended from time to time).

(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.