HARRY HUGHES, Governor                                       1321

CHAPTER 336

(Senate Bill 502)

AN ACT concerning

Creation of a State Debt - St. Johns John's College

FOR the purpose of authorizing the creation of a State Debt in
the amount of $1,025,000 $1,000,000. the proceeds to be used
as a grant to St. Johns John's College to assist in the
planning, design, renovation, alteration, addition, and
equipping of Mellon Hall, subject to the requirement that
St. Johns John's College provide up to a certain sum of a
certain type of funds as a matching fund for the same
purpose by a certain date; and providing generally for the
issue 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 St. Johns John's College Loan of 1986 in
the total principal amount of $1,025,000 $1,000,000. 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: as a grant to St. Johns John's College to
assist in the planning, design, renovation, alteration, addition,
and equipping of Mellon Hall.

(4)  An annual State tax is imposed 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. The principal shall be discharged within 15 years
after the date of issue of the bonds.