(a) Except as provided in § 8-129 of this subtitle, the proceeds of a sale of State bonds may be used only in the manner and for a project or program that is specified in an enabling act authorizing the issuance of State bonds.
(b) (1) Except as provided in § 8-129 of this subtitle, the proceeds of a sale of State bonds may be used only for a capital improvement unless:
(i) the enabling act specifically provides otherwise; or
(ii) in an emergency, the Board unanimously grants a temporary exception.
(2) The Board shall determine whether the object of an expenditure is a capital improvement. The standard for this determination is whether the useful life of the object equals or exceeds the life of the State bonds.
(c) The Board shall enforce the provisions of this section.
Structure Maryland Statutes
Subtitle 1 - General Obligation Debt
Part III - Authorization and Implementation
Section 8-118 - General Powers and Duties of Board
Section 8-119 - Resolution of Board -- General Scope
Section 8-120 - Resolution of Board -- Specific Provisions
Section 8-121 - Resolution of Board -- Form of State Bonds
Section 8-122 - Resolution of Board -- Consolidated State and Local Facilities Loans
Section 8-122.1 - Use of Funds on Sale of Bonds
Section 8-123 - Public Sale of State Bonds
Section 8-123.1 - Sale of Capital Appreciation Bonds
Section 8-123.2 - Sale of Small Denomination Bonds
Section 8-123.3 - College Savings Bonds
Section 8-123.4 - Variable Interest Rate Bonds
Section 8-124 - General Obligation Bonds
Section 8-125 - State and Local Facilities Loan Fund
Section 8-126 - Reduction of Authorization
Section 8-127 - Restrictions on Use
Section 8-128 - Termination of Authorization
Section 8-129 - Unspent Proceeds
Section 8-130 - Adoption of Regulations