WILLIAM DONALD SCHAEFER, Governor                         Ch. 244

(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:
as a grant to the Board of Trustees of the Avalon Theatre, Inc. for the repair, renovation,
rehabilitation, reconstruction, construction, and equipping of the historic Avalon Theatre
in Easton.

(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 [Mid-Shore
Center for the Performing Arts, Inc. -] Avalon Theatre Loan of 1990 in the total
principal amount of $85,000. 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: as a grant to the [Mid-Shore Center for the Performing Arts, Inc.] BOARD OF
TRUSTEES OF THE AVALON THEATRE, INC. for the purpose of restoring [and],
renovating, REPAIRING, REHABILITATING, RECONSTRUCTING, CONSTRUCTING AND
EQUIPPING the historic Avalon Theatre in Easton, located in Talbot County.

(4)     An annual State tax is imposed on all assessable property in the State in rate
and amount sufficient to pay the principal of and interest on the bonds as and when due
and until paid in full. The principal shall be discharged within 15 years after the date of
issuance of the bonds.

(5) Prior to the payment of any funds under the provisions of this Act for the
purposes set forth in Section 1(3) above, the Board of Trustees of the Avalon Theatre,
Inc. shall provide and expend a matching fund. No part of an applicant's matching fund
may be provided, either directly or indirectly, from funds of the State, whether
appropriated or unappropriated. No part of the fund may consist of real property, in kind
contributions, or funds expended prior to the effective date of this Act. In case of any
dispute as to the amount of the matching fund or what money or assets may qualify as
matching funds, the Board of Public Works shall determine the matter and the Board's
decision is final. The Board of Trustees of the Avalon Theatre, Inc. has until June 1, 1995,
to present evidence satisfactory to the Board of Public Works that a matching fund will be
provided. If satisfactory evidence is presented, the Board shall certify this fact and the
amount of the matching fund to the State Treasurer, and the proceeds of the loan equal

- 1635 -