PARRIS N. GLENDENING, Governor

Ch. 671

CHAPTER 671
(House Bill 541)

AN ACT concerning

Creation of a State Debt - Loyola College

FOR the purpose of authorizing the creation of a State Debt not to exceed $3,000,000,
the proceeds to be used as a grant to Loyola College 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; prohibiting the grantee from using any of the proceeds of the bonds or the
matching funds for sectarian 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 Loyola College
Loan of 1997 in a total principal amount equal to the lesser of (i) $3,000,000 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 Loyola College (referred to hereafter in this Act as "the grantee") for the
planning, design, and construction of, and for the provision of capital equipment for, a
new academic building and for the planning, design, repair, renovation, and restoration
of, and for the provision of capital equipment for, additions to Jenkins Hall planning,
design, capital equipping and construction of a new academic building and for the
planning, design, repair, renovation, restoration, and capital equipping of, and for
additions to, Jenkins 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.

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