PARRIS N. GLENDENING, Governor

Ch. 578

CHAPTER 578
(Senate Bill 376)

AN ACT concerning

Creation of a State Debt - Benedictine School for Exceptional Children

FOR the purpose of authorizing the creation of a State Debt not to exceed $150,000, the
proceeds to be used as a grant to the Benedictine School for Exceptional Children
in Caroline County for certain acquisition, development, or improvement purposes;
providing for disbursement of the loan proceeds, subject to a requirement that the
grantee provide and expend a matching fund; providing that no proceeds of a loan
or any matching funds may be used for religious purposes; and providing generally
for the issuance and sale of bonds evidencing the loan.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That:

(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 Benedictine
School for Exceptional Children Loan of 1996 in a total principal amount equal to the
lesser of (i) $150,000 or (ii) the amount of the matching fund provided in accordance with
Section 1(5) below. 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 Benedictine School for Exceptional Children (known hereafter in this
Act as "the grantee") for the repair and renovation of the Benedictine School for
Exceptional Children in Caroline County, including replacement of roofs, road
resurfacing and repair, and groundwater drainage improvements, and for the installation
of air-conditioning in the Academic Hall.

(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 grantee shall provide and expend a matching
fund. No part of the grantee's matching fund may be provided, either directly or

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