HARRY HUGHES, Governor

2639

of Article 31 of the Annotated Code of Maryland (1976
Replacement Volume and 1979 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: to provide a
fund to make loans, pursuant to the provisions of §§ 266FF-1
through 266FF-4 of Article 41 of the Annotated Code of
Maryland, as amended from time to time, to certain citizens
of Maryland to purchase homes.

(4)  Except for amounts required for administrative
costs, all scheduled payments (timely or late) of principal
and interest on loans made pursuant to the provisions of §§
266FF-1 through 266FF-4 of Article 41 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. Any prepayment of the principal on a loan
may be used to make additional loans under the Home
Financing 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, 1980.

Approved May 27, 1980.

CHAPTER 769
(House Bill 926)
AN ACT concerning

Creation of a State Debt - Maryland