HARRY HUGHES, Governor                                    1907

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(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 Carroll Creek Project Loan of 1986 in the

total principal amount of $3,000,000 $1,000,000 $800,000. 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 the City of Frederick for the
purpose of assisting in the construction of Phase III of the
Carroll Creek Project, between and including South Market Street
and South Carroll Street, in the City of Frederick, Frederick
County.

(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.

(5)  Prior to the payment of any funds under the provisions
of this Act for the purposes set forth in Section 1(3) above, the
City of Frederick shall provide at least an equal and matching

fund of $3,000,000 $1,000,000 $800,000. No part of an
applicant's matching fund may be provided, either directly or

indirectly, from funds of the State, whether appropriated or

unappropriated. No part of the fund may consist of real

property, in kind contributions, or funds expended prior to the

effective date of this Act. In case of any dispute as to what

money or assets may qualify as matching funds, the Board of

Public Works shall determine the matter, and the Board's decision

is final. The City of Frederick has until June 1, 1988, to

present evidence satisfactory to the Board of Public Works that

the matching fund will be provided. If satisfactory evidence is

presented, the Board shall certify this fact to the State

Treasurer and the proceeds of the loan shall be expended for the

purposes provided in this Act. If this evidence is not presented

by June 1, 1988, the proceeds of the loan shall be applied to the

purposes authorized in § 8-129 of the State Finance and

Procurement Article.