1274

LAWS OF MARYLAND

Ch. 440

CHAPTER 440

(Senate Bill 358)

AN ACT concerning

Creation of a State Debt — Home Financing

FOR the purpose of authorizing the creation of a State Debt
in the amount of $10,000,000 $7,500,000, the proceeds
to be used to provide mortgage money for disadvantaged
and low—income citizens of Maryland; and providing
generally for the issue and sale of bonds evidencing
the loan.

SECTION 1. BE IT EN1CTED 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 Home
Financing Loan of 1979 in the aggregate principal amount of
$10,000,000 $7,500,000. 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 1978 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, to provide a fund to make loans to certain
citizens of Maryland to purchase homes pursuant to the
provisions of §6 266FF-1 through 266FF-4 of Article 41 of
the Annotated Code of Maryland (1978 Replacement Volume and
1978 Supplement, as amended from time to time).

(4)    Except for amounts required for administrative
costs, all scheduled payments (timely or late) 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 §§ 266FF-1 through 266FF-4 of Article 41,
shall be used to repay the interest on and principal of any
bonds issued under this Act. Any prepayment of the
principal on a loan may be used to make additional loans
under the Maryland Home Financing Program, which loans shall