1022

LAWS OF MARYLAND

Ch. 11

8-127. RESTRICTIONS ON USE.

(A)  ENABLING ACT.

EXCEPT AS PROVIDED IN § 8-129. OF THIS SUBTITLE, THE PROCEEDS
OF A SALE OF STATE BONDS MAY BE USED ONLY IN THE MANNER AND FOR A
PROJECT OR PROGRAM THAT IS SPECIFIED IN THE ENABLING ACT UNDER
WHICH THE STATE BONDS ARE ISSUED.

(B)  BOARD.

(1)  EXCEPT AS PROVIDED IN § 8-129 OF THIS SUBTITLE,
THE PROCEEDS OF A SALE OF STATE BONDS MAY BE USED ONLY FOR A
CAPITAL IMPROVEMENT UNLESS:

(I)  THE ENABLING ACT SPECIFICALLY PROVIDES
OTHERWISE; OR

(II)  IN AN EMERGENCY, THE BOARD UNANIMOUSLY
GRANTS A TEMPORARY EXCEPTION.

(2)  THE BOARD SHALL DETERMINE WHETHER THE OBJECT OF
AN EXPENDITURE IS A CAPITAL IMPROVEMENT. THE STANDARD FOR THIS
DETERMINATION IS WHETHER THE USEFUL LIFE OF THE OBJECT EQUALS OR
EXCEEDS THE LIFE OF THE STATE BONDS.

(C)  ENFORCEMENT.

THE BOARD SHALL ENFORCE THE PROVISIONS OF THIS SECTION.

REVISOR'S NOTE: Subsection (a) of this section is new
language derived without substantive change from the
first clause of the first sentence of former Art. 31,
§ 2B(g) and the reference, in the first sentence of
(a), to "purposes designated in the enabling acts".
Although former Art. 31, § 2B applied only to
consolidated issues, subsection (a) of this section is
revised to apply to all issues of State bonds. This
revision is supported by the references to "purposes"
in former Art; 31, § 20.

Subsection (b) of this section is new language derived
without substantive change from former Art. 78A, § 2
and, as it related to that section, § 5.

Subsection (c) of this section is new language derived
without substantive change from former Art. 78A, § 6
as it related to § 2. Although former Art. 78A, § 6
applied only to former Art. 78A, §§ 2, 3, 4, and 5,
subsection (c) of this section is revised to apply
also to the provisions derived from former Art. 31, §
2B(a) and (g). This revision is supported by the
authority granted to the Board in former Art. 31, §
2B.