WILLIAM DONALD SCHAEFER, Governor                     Ch. 45

9D.

The County Commissioners of Caroline County, CHARLES COUNTY,
or Garrett County, in addition to, but not in substitution of,
the powers which have been or may hereafter be granted the
county, and in the exercise of its borrowing power, shall have
full power and authority to purchase or lease any personal
property necessary or desirable for the operation of their
respective county, pursuant to a multiyear contract requiring
that the County Commissioners of the purchasing or leasing county
make installment or rental payments during 2 or more fiscal
years; to pay interest as part of any installment or rental
payments in accordance with the terms of the contract; and to
pledge and assign the personal property purchased or leased
pursuant to any contract to secure the purchasing or leasing
county's obligations thereunder, provided the following
conditions are met:

(1)  Funds sufficient to pay all amounts due under the
contract during the first fiscal year in which the contract is
effective are or will be available and have been appropriated and
can be used for this purpose;

(2)  The contract includes a termination provision
which permits the purchasing or leasing county to terminate the
contract if funds sufficient to pay all amounts due under the
contract for any fiscal year are not appropriated for this
purpose for such fiscal year. However, the contract may provide
that termination of the contract shall be ineffective if the
county purchases or leases personal property similar or
functionally related to that purchased or leased under the
contract within a period of time after termination, as specified
in the contract;

(3)  The contract provides that, absent a default in
payment by the purchasing or leasing county under the contract,
any obligation to pay amounts due under the contract shall be
limited to funds appropriated for this purpose for that fiscal
year; and

(4)  The contract provides that, in the event of
default in payment by the county under the contract, any
obligation to pay amounts due under the contract shall be limited
to funds appropriated for this purpose for that fiscal year,
amounts realized from the personal property purchased or leased
under the contract, and any other funds legally available for
this purpose.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1987.

Approved April 14, 1987.

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