WILLIAM DONALD SCHAEFER, Governor Ch. 255

(1)  The bonds to be issued on behalf of the county
will be repaid, with interest, within 15 years after their date
of issue;

(2)  Each issue of bonds on behalf of the county shall
be approved by resolution of the Board of Public Works before
they are issued;

(3)  Unless the county elects to deposit the amount
with the State Comptroller under item (4) of this subsection, AND
EXCEPT AS PROVIDED IN § 3-104 OF THIS ARTICLE, the State
Comptroller may withhold and deposit money to the credit of a
sinking fund maintained to pay the principal of and interest on
the bonds from funds allocable to the county under Title 8,
Subtitle 4 of this article, after first providing for sinking
fund requirements on outstanding and unpaid county highway
construction bonds issued pursuant to Chapter 657 of the Laws of
1953, until an amount equal to the debt service payable in the
current fiscal year and the next succeeding fiscal year is
accumulated and, thereafter, an amount equal to debt service on
the bonds in the succeeding fiscal year, but no part of the funds
that have been previously pledged for debt service on outstanding
and unpaid bonds of the county, as provided in Title 8, Subtitle
4, may be withheld;

(4)   In any year in which any bonds covered by the
agreement are outstanding and unpaid, the county may make an
annual levy on its taxable basis in the rate and amount
sufficient to provide a sum equal to the amount to be withheld by
the State Comptroller, as provided in item (3) of this
subsection, in which event the State Comptroller may not withhold
any more of the highway user revenues of the county than
necessary to assure payment of the principal of and interest on
the bonds in the current fiscal year and the next succeeding
fiscal year;

(5)  At regular intervals, the State Comptroller shall
pay from the sinking fund to the Department amounts sufficient to
pay the principal of and interest on the bonds; and

(6)  The county shall use and invest its share of the
proceeds of the bonds within the parameters established by the
Department and take, or refrain from taking, such other and
further actions as may be required of it by the Department to
maintain the exemption from federal income taxation of interest
on the bonds.

SECTION 2. AND BE IT FURTHER ENACTED, That the Department
of Transportation may not use the additional bonding capacity
resulting from this legislation to add any new capital projects
for fiscal years 1990, 1991, and 1992 in the Consolidated
Transportation Program. This legislation may not preclude the

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