1278

LAWS OF MARYLAND

Ch. 442

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 1979 in the aggregate principal
amount of $2,000,000. 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 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 funds to for the Maryland Housing
Rehabilitation Program to be used in accordance with § 257L
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 Section 257L of Article 41, 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. Any prepayment of the principal on a loan
may be used to make additional loans under the Maryland
Housing Rehabilitation Program, which loans shall be
treated, for purposes of this section, as loans made from
proceeds of the bonds authorized to be issued under this
Act.

(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 be 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, 19 79.