Ch. 732

LAWS OF MARYLAND

(d)   "State bond" means a general obligation bond of the
State.

(e)   "State debt" means the general obligation debt of the
State.

(F) "CAPITAL APPRECIATION BOND" MEANS A STATE BOND THAT
ACCRUES INTEREST ON A SEMIANNUAL COMPOUNDING BASIS WITH INTEREST
PAYABLE ONLY AT ON THE DATE OF MATURATION MATURITY.

8-117.

(a) (1) The General Assembly may authorize the Board to:

[(1)](I) borrow money for any public purpose; and

[(2)] (II) issue State bonds to evidence the debt.

(2) THE BOARD MAY ISSUE AND SELL FROM TIME TO TIME A
PORTION OF STATE BONDS AS CAPITAL APPRECIATION BONDS.

8-121.

(a) By resolution, the Board may specify the form in which
State bonds are to be issued, including:

(1)  a coupon form;

(2)  A CAPITAL APPRECIATION FORM;

[(2)] (3) a form that qualifies as a registered form
under § 103 of the Internal Revenue Code of 1954 or a regulation
proposed or adopted under that section; and

[(3)] (4) any other registered form.

8-122.1.

(A)  UPON SALE OF STATE BONDS AUTHORIZED BY AN ENABLING ACT,
THE PRINCIPAL AMOUNT OF THE LOAN AUTHORIZED BY THAT ENABLING ACT
SHALL BE REDUCED BY:

(1)  THE STATED PRINCIPAL AMOUNT OF THE STATE BONDS
SOLD, IF THE BONDS ARE SOLD AT 95% OR MORE OF PAR; OR

(2)  THE CASH PROCEEDS, EXCLUDING ANY ACCRUED
INTEREST, RECEIVED FOR THE STATE BONDS, IF THE BONDS ARE SOLD AT
LESS THAN 95% OF PAR.

(B)  WHENEVER STATE BONDS ARE SOLD AS A CONSOLIDATED ISSUE
AT LESS THAN 95% OF PAR, THE BOARD, BY RESOLUTION, SHALL
DETERMINE THE MANNER IN WHICH THE CASH PROCEEDS RECEIVED FOR THE

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