HARRY HUGHES, Governor                                    1679

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1986.

Approved May 13, 1986.

CHAPTER 464

(House Bill 580)

AN ACT concerning

Creation of a State Debt - State Public School
Construction and Capital Improvement Loan of 1986

FOR the purpose of authorizing the creation of a State Debt in

the amount of $35,000,000 $44,300,000, the proceeds to be
used to finance the construction of public school buildings
and public school capital improvements in this State; 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 State Public School Construction and
Capital Improvement Loan of 1986 in the total principal amount of
$35,000,000 $44,300,000. 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: for financing the construction of public school
buildings and public school capital improvements in this State in
accordance with §§ 5-301 through 5-303 of the Education Article.