WILLIAM DONALD SCHAEFER, Governor                   Ch. 353

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 Peabody Conservatory of Music Loan of
1987 in the total principal amount of $2,500,000 $1,750,000
$2,000,000. 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 Peabody Institute of The Johns
Hopkins University to assist in the planning, design,
construction, and equipping of an academic/library building.

(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)  The payment of any funds under the provisions of this
Act for the purposes set forth in Section 1(3) above, shall be
contingent upon the provision by Peabody Institute of The. Johns
Hopkins University of a sum up to $2,500,000 $1,750,000
$2,000,000 as a matching fund for this project. No part of an
applicant's matching fund may be provided from State funds either
directly or indirectly, in whole or in part. No part of the fund
may consist of real property or in kind contributions. 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. Peabody Institute of The Johns
Hopkins University has until June 1, 1989, to present evidence
satisfactory to the Board of Public Works of the sum that it has
raised as a matching fund for this purpose. Upon a certification
of suitable evidence from the Board of Public Works on or before
June 1, 1989, the proceeds of the loan shall be expended in
accordance with the provisions of this Act. To the extent that
satisfactory evidence of the raising of a sum up to $2,5000,000

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