Ch. 138

1995 LAWS OF MARYLAND

8-404.

A CAPITAL LEASE AUTHORIZED UNDER THIS SUBTITLE:

(1) (1) SHALL BE CONTINGENT ON THE AVAILABILITY OF
APPROPRIATED OR OTHER LEGALLY AVAILABLE FUNDS, NOT INCLUDING
NONAPPROPRIATED PENSION OR RETIREMENT FUNDS, THAT PERMIT THE TIMELY
PAYMENT OF PRINCIPAL, INTEREST, AND OTHER OBLIGATIONS,' IF ANY, IMPOSED BY
THE TERMS OF THE CAPITAL LEASE;

(2)      MAY NOT BE CONSTRUED OR DEEMED TO BE A DEBT OF THE STATE
OR A UNIT OF STATE GOVERNMENT; AND

(3)      MAY NOT CONSTITUTE A PLEDGE OF THE FULL FAITH AND CREDIT
AND TAXING POWER OF THE STATE OR A UNIT OF STATE GOVERNMENT.

(2) MAY NOT BE CONSTRUED OR DEEMED TO BE A DEBT OF THE STATE
OR A UNIT OF STATE GOVERNMENT; AND

(3) MAY NOT CONSTITUTE A PLEDGE OF THE FULL FAITH AND CREDIT
AND TAXING POWER OF THE STATE OR A UNIT OF STATE GOVERNMENT.

8-405.

(A)     THE TREASURER SHALL, AT A REASONABLE MARKET RATE, CAPITALIZE
THE PAYMENTS ON A CAPITAL LEASE AUTHORIZED UNDER THIS SUBTITLE ON AN
ANNUAL BASIS FOR EACH FISCAL YEAR THE LEASE IS IN EFFECT.

(B)     THE GREATER OF THE AMOUNT DETERMINED FOR A GIVEN FISCAL YEAR
UNDER SUBSECTION (A) OF THIS SECTION OR THE AMOUNT OF ANY PURCHASE
VALUE AT THE TERMINATION OF A CAPITAL LEASE AUTHORIZED UNDER THIS
SUBTITLE SHALL BE INCLUDED IN THE TAX SUPPORTED DEBT CONSIDERED BY THE
CAPITAL DEBT AFFORDABILITY COMMITTEE IN ITS ANNUAL ESTIMATE FOR THAT
FISCAL YEAR UNDER SUBTITLE 1 OF THIS TITLE.

8-405. 8-406.

(A)     (1) THE STATE TREASURER MAY DEPOSIT THE PROCEEDS OF A
CAPITAL LEASE AUTHORIZED UNDER THIS SUBTITLE IN AN ESCROW ACCOUNT OR
SIMILAR ARRANGEMENT.

(2)      THE PROCEEDS MAY BE WITHDRAWN FOR THE PURPOSE OF
MAKING PAYMENT DUE UNDER THE TERMS OF THE CAPITAL LEASE.

(3)      A WITHDRAWAL MADE UNDER THE PROVISIONS OF THIS SECTION
SHALL BE MADE IN ACCORDANCE WITH THE TERMS OF THE INDIVIDUAL
CONTRACT.

(B)     THE STATE TREASURER MAY INVEST ANY UNEXPENDED PROCEEDS
HELD IN ESCROW AND THE INVESTMENT INCOME ON THE PROCEEDS IN
OBLIGATIONS AUTHORIZED FOR THE INVESTMENT OF STATE FUNDS UNDER § 6-222
OF THIS ARTICLE.

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