1054

LAWS OF MARYLAND

Ch. 11

subsection (a)(1) of this section, that requires
interest to be paid from the proceeds of the bonds.

As to the covenants for payment of notes, see § 8-213
of this subtitle.

The Commission to Revise the Annotated Code notes, for
consideration by the General Assembly, that it may
wish to enact, in lieu of subsection (a)(2) of this
section, a new subsection (c) of this section that
would also allow 1 year's interest on grant
anticipation notes to be paid from their proceeds. If
the General Assembly wishes to make this change, it
may wish to amend § 8-213(b)(2) of this subtitle, so
that the covenants required from the State unit
reflect this authority.

Defined terms: "Bond" § 8-201
"State unit" § 8-201

8-219. PROCEEDS OF SALE OF BOND ANTICIPATION NOTES.

THE PROCEEDS OF SALE OF BOND ANTICIPATION NOTES SHALL BE
SPENT:

(1)  1ST, FOR PAYMENT OF THE EXPENSES OF ISSUANCE OF
THE NOTES; AND

(2)  THEN, SUBJECT TO § 8-218(A)(2) OF THIS SUBTITLE,
ONLY FOR THE PUBLIC PURPOSES FOR WHICH THE BONDS ARE AUTHORIZED.

REVISOR'S NOTE: This section is new language that repeats
the provisions of the second sentence of present Art.
31, § 12(a).

In item (2) of this section, the phrase "subject to §
8-218(a)(2) of this subtitle" is added for clarity.

The Commission to Revise the Annotated Code notes, for
consideration by the General Assembly, that it was
unclear whether the second sentence of present Art.
31, § 12(a) was intended to apply to grant
anticipation notes. As revised in this section, the
provisions apply only to bond anticipation notes.

Defined term: "Bond" § 8-201

8-220. INTEREST RATE LIMIT ON BONDS.

(A) IN GENERAL.

(1) EXCEPT FOR THE PROVISIONS OF THIS SECTION, EACH
STATE UNIT SHALL COMPLY WITH THE PROVISIONS, REQUIREMENTS, AND
LIMITATIONS IN THE ENABLING ACT.