1. (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.

2. (b)

   1. (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:

      1. (i) the enabling act specifically provides otherwise; or
      2. (ii) in an emergency, the Board unanimously grants a temporary exception.
   2. (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.
3. (c) The Board shall enforce the provisions of this section.

Added by Acts 1985, c. 11, § 2, eff. Oct. 1, 1985. Amended by Acts 2003, c. 66, § 1, eff. April 22, 2003.

Formerly Art. 31, § 2B; Art. 78A, §§ 2, 5, 6.