department of divinity for any religious denomination. Upon the request of the Board
of Public Works, the grantee shall submit evidence satisfactory to the Board that none
of the proceeds of the loan or any matching funds have been or are being used for a
purpose prohibited by this Act.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 1999.

Approved April 27, 1999.

CHAPTER 281
(House Bill 1046)

AN ACT concerning

Creation of a State Debt - Frederick County Chapter, American Red Cross

FOR the purpose of authorizing the creation of a State Debt not to exceed $300,000
$100,000, the proceeds to be used as a grant to the Frederick County Chapter,
American Red Cross 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; requiring
the grantee to grant and convey a certain easement to the Maryland Historical
Trust; 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 Frederick
County Chapter, American Red Cross Loan of 1999 in a total principal amount equal
to the lesser of (i) $300,000 $100,000 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 Frederick County Chapter, American