Ch. 667                                    LAWS OF MARYLAND

(1985 Volume and 1986 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - State Finance and Procurement

8-201.

(e) [(1)] "State unit" means a unit or instrumentality of
the State.

[(2) "State unit" does not include the State.]

8-130.

(A) SUBJECT TO THE LIMITATIONS IN THIS SECTION, THE BOARD
OF PUBLIC WORKS MAY ISSUE NEW BONDS TO REFUND ITS OUTSTANDING
BONDS.

(B) THE POWER TO ISSUE BONDS UNDER THIS SECTION IS IN
ADDITION TO ANY OTHER POWER TO BORROW.

(C) THE BOARD MAY ISSUE BONDS UNDER THIS SECTION ONLY FOR:

(1) THE PUBLIC PURPOSE OF REALIZING FOR THE STATE A
SAVINGS IN THE TOTAL COST OF DEBT SERVICE ON A DIRECT COMPARISON
OR PRESENT VALUE BASIS; OR                                                                            

(2)  THE PUBLIC PURPOSE OF DEBT RESTRUCTURING THAT
REDUCES THE TOTAL COST OF DEBT SERVICE; OR.

(D) THE BOARD MAY:

(1) PROVIDE THAT BONDS UNDER THIS SECTION BE IN 1 OR
MORE SERIES; AND

(2) VARY THE AMOUNT OF THE SERIES.                               

(E) THE TOTAL PRINCIPAL AMOUNT OF THE BONDS ISSUED UNDER
THIS SECTION MAY EXCEED THE TOTAL PRINCIPAL AMOUNT OF THE BONDS
THAT ARE BEING REFUNDED.

(F) BONDS THAT ARE BEING REFUNDED AND THAT ARE SUBJECT TO
REDEMPTION BEFORE THEIR STATED DATES OF MATURITY MAY BE CALLED
FOR REDEMPTION:

(1) ON THE EARLIEST REDEMPTION DATE; OR

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(3) THE PUBLIC PURPOSE OF DEBT RESTRUCTURING THAT THE
BOARD DETERMINES IS IN THE BEST INTERESTS OF THE STATE.