WILLIAM DONALD SCHAEFER, Governor Ch. 732

BONDS, EXCLUDING ACCRUED INTEREST, SHALL BE ALLOCATED AMONG THE
LOANS INCLUDED IN THAT ISSUE.

8-131.2 8-123.1.

(A) IN ACCORDANCE WITH THE AUTHORITY TO ISSUE CAPITAL
APPRECIATION BONDS UNDER § 8-117(A)(2) 8-121 OF THIS SUBTITLE,
THE BOARD, IN A RESOLUTION SETTING FORTH THE TERMS AND CONDITIONS
OF ANY STATE BOND ISSUE, MAY DESIGNATE THAT UP TO 5 % PER YEAR OF
ALL OR A PORTION OF THE STATE BONDS BE ISSUED AS CAPITAL
APPRECIATION BONDS.

(B) CAPITAL APPRECIATION BONDS SHALL BE ISSUED IN SMALL
DENOMINATIONS AND DISTRIBUTED FOR SALE IN A WAY AS TO MAKE
FEASIBLE THE ACQUISITION OF THESE BONDS BY THE GENERAL PUBLIC.

(C) EACH PURCHASER OF CAPITAL APPRECIATION BONDS MAY NOT
PURCHASE THE BONDS IN AN AMOUNT THAT EXCEEDS $4,500.

(D)(1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS

SUBSECTION, THE CAPITAL APPRECIATION BONDS SHALL BE SOLD AT
PUBLIC SALE AS SET FORTH IN § 8-123 OF THIS SUBTITLE.

(2) (B) THE BOARD MAY SELL THE CAPITAL APPRECIATION
BONDS AT A NEGOTIATED SALE IF:

(I) THE BOARD DETERMINES THAT A NEGOTIATED SALE
WILL RESULT IN EITHER A MORE EFFICIENT AND ECONOMICAL SALE OF THE
BONDS; OR

(II) THE NEGOTIATED SALE OF THE BONDS PROVIDES
PROVIDE GREATER ACCESS TO INVESTORS WHO ARE RESIDENTS OF THE
STATE OF MARYLAND.

(E) ANY BOND ISSUED UNDER THIS SECTION SHALL HAVE A
MATURATION DATE NO LATER THAN 15 YEARS AFTER THE DATE OF ISSUE
AND SHALL BE PAYABLE IN 1 PAYMENT ON A FIXED DATE.

8-123.2.

(A)  IN THIS SECTION, "SMALL DENOMINATION BONDS" MEANS BONDS
IN DENOMINATIONS OF $1,000 OR LESS.

(B)  IN ACCORDANCE WITH § 8-121 OF THIS SUBTITLE, THE BOARD,
IN A RESOLUTION SETTING FORTH THE TERMS AND CONDITIONS OF ANY
STATE BOND ISSUE, MAY DESIGNATE THAT ALL OR A PORTION OF THE
STATE BONDS BE ISSUED AS SMALL DENOMINATION BONDS.

(C)  SMALL DENOMINATION BONDS MAY BE ISSUED IN ANY FORM
PERMITTED UNDER § 8-121 OF THIS SUBTITLE.

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