1294                                          LAWS OF MARYLAND                                      Ch. 323

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect June 1, 1986.

Approved May 13, 1986.

CHAPTER 323

(Senate Bill 343)

AN ACT concerning

Creation of a State Debt - Water Supply Facilities Loan of 1986

FOR the purpose of authorizing the creation of a State Debt in
the amount of $500,000 the proceeds to be used by the
Secretary of Health and Mental Hygiene, under certain
conditions and limitations, to provide financial assistance
to State and local governmental entities for the
acquisition, construction, equipping, rehabilitation, and
improvement of water supply facilities; and providing
generally for the issuance and sale of bonds evidencing the
loan.

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 Water Supply Facilities Loan of 1986 in
the total principal amount of $500,000. This loan shall be
evidenced by the issuance, sale, and delivery of State general
obligation bonds authorized by a resolution of the Board of
Public Works and issued, sold, and delivered in accordance with
§§ 8-117 through 8-124 of the State Finance and Procurement
Article and Article 31, § 22 of the Code.

(2)  The bonds to evidence this loan or installments of this
loan may be sold as a single issue, or may be consolidated and
sold as part of a single issue of bonds under § 8-122 of the
State Finance and Procurement Article.

(3)  The cash proceeds of the sale of the bonds shall be
paid to the Treasurer and first shall be applied to the payment
of the expenses of issuing, selling, and delivering the bonds,
unless funds for this purpose are otherwise provided, and then
shall be credited on the books of the Comptroller and expended,
on approval by the Board of Public Works, for the following
public purposes, including any applicable architects' and
engineers' fees: to be used by the Secretary of Health and Mental
Hygiene to provide financial assistance to State and local
governmental entities for the acquisition, construction,