PARRIS N. GLENDENING, Governor

Ch. 405

CHAPTER 405
(Senate Bill 845)

AN ACT concerning

Charles County and Garrett County Community College Colleges - Authority to Incur

Debt

FOR the purpose of authorizing the Board of Community College Trustees for Charles
County or Garrett County to borrow money for certain purposes and to secure
certain debt in a certain manner; providing for the termination of certain financing
agreements under certain circumstances; providing that certain borrowing does not
constitute debt or an obligation of the State or certain political subdivisions;
applying certain provisions concerning certain lease purchase agreements to the Board of
Community College Trustees for Charles County; exempting the Board of Community
College Trustees for Charles County or Garrett County from a certain provision
concerning certain lease purchase agreements; authorizing the Board of Community
College Trustees for Charles County of Garrett County to enter certain lease
purchase agreements under certain circumstances; providing for the effective date
of this Act; and generally relating to the authority of the Board of Community
College Trustees for Charles County or Garrett County to engage in certain
financing.

BY repealing and reenacting, with amendments,
Article - Education
Section 16-401.1
Annotated Code of Maryland
(1992 Replacement Volume and 1994 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Education

16-401.1.

(a)     Notwithstanding any other provisions of this subtitle, and subject to funds
being appropriated, the Board of Community College Trustees for CHARLES COUNTY,
GARRETT COUNTY, Howard County, Montgomery County, or Prince George's County
may borrow money to acquire an interest in personal property, including fixtures, for the
operation of the community college, on terms and conditions that the Board of Trustees
considers proper.

(b)     A borrowing under this section may be secured by the personal property
acquired or revenues derived from the property.

(c)     All multiyear financing agreements reflecting borrowing under this section
shall be subject to cancellation by the Board of Trustees at the end of a fiscal year if
sufficient funds are not appropriated to fund the agreement in subsequent years.

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