to the Maryland Historical Trust, in form and substance acceptable to the Trust. If the
recipient holds a fee simple interest in the land and structures, the easement shall be
perpetual in duration.

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 Talbot
County - Avalon Theatre Loan of 1999 in a total principal amount equal to the lesser
of (i) $60,000 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 Board of Trustees of the Avalon
Foundation, Inc. (referred to hereafter in this Act as "the grantee") for the restoration,
renovation, repair, rehabilitation, reconstruction, construction, and capital equipping
of the historic Avalon Theatre facilities in Easton, located in Talbot County.

(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) (a) The grantee shall provide and expend a matching fund.

(b) No part of the grantee's matching fund may be provided, either
directly or indirectly, from funds of the State, whether appropriated or
unappropriated. No part of the fund may consist of real property or funds expended
prior to the effective date of this Act. The fund may consist of in kind contributions. In
case of any dispute as to the amount of the matching fund or what money or assets
may qualify as matching funds, the Board of Public Works shall determine the matter
and the Board's decision is final.

(c) The grantee shall present evidence to the satisfaction of the Board of
Public Works of the provision and expenditure of the matching fund, and the Board of
Public Works shall disburse the proceeds of the grant under the provisions of this Act
for the purposes set forth in Section 1(3) above, both to be done in installments.