WILLIAM DONALD SCHAEFER, Governor                    Ch. 668

CHAPTER 668

(House Bill 636)

AN ACT concerning

Creation of a State Debt - Chesapeake
Bay Water Quality Loan of 1988

FOR the purpose of restoring, protecting, and improving the water
quality of the Chesapeake Bay and the water of the State by
authorizing the creation of a State Debt in the amount of
$17,700,000, the proceeds to be used for certain programs or
projects related to construction or improvements at
publicly-owned sewage treatment works, to the control of
agriculturally related nonpoint sources of water pollution,
to reduce pollution from stormwater runoff in existing
urbanized areas ; , and to address existing special water
quality or public health needs; 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 Chesapeake Bay Water Quality Loan of 1988
in the total principal amount of $17,700,000. 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: to be credited to the Water Pollution Control
Fund and to be expended for projects to improve the water quality
of the Chesapeake Bay and other waters of the State, as
authorized under Title 9, Subtitle 3, Part VI of the Environment

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