(iii) The contract is canceled by the purchaser.

(2) The time that a qualified beneficiary spends in active duty as a
member of the United States armed forces shall be added to the time period allowed
to exercise the benefits under a higher education investment contract before a
termination under paragraph (1) of this subsection.

18-1914.

(a) Nothing in this subtitle or in any higher education investment contract
may be construed as a promise or guarantee by the Board of admission to, continued
enrollment at, or graduation from an institution of higher education [in the State].

(b) The actual tuition rate charged to a qualified beneficiary shall be
determined at the time of enrollment in accordance with the residency policy adopted
by the governing board of the institution of higher education at which the qualified
beneficiary enrolls.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be
construed retroactively and shall be applied to and interpreted to affect all higher
education contracts purchased prior to the effective date of this Act.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1999.

Approved May 27, 1999.

CHAPTER 552
(Senate Bill 343)

AN ACT concerning

Creation of a State Debt - Baltimore City - Baltimore Clayworks, Inc.

FOR the purpose of authorizing the creation of a State Debt not to exceed $600,000
$500,000, the proceeds to be used as a grant to the Board of Directors of
Baltimore Clayworks, Inc. for certain 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 Baltimore
City - Baltimore Clayworks, Inc. Loan of 1999 in a total principal amount equal to the
lesser of (i) $600,000 $500,000 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,