Section 8-401 – Purpose

    The purpose of this subtitle is to codify the authority of the State Treasurer to enter into a capital lease agreement and to establish a method for financing a capital lease as defined in this subtitle.

Section 8-402 – Definitions

    (a)    In this subtitle the following terms have the meanings indicated.     (b)    “Capital equipment” means any item of equipment that, by generally accepted accounting principles, is capitalized for purposes of accounting.     (c)    (1)    “Capital lease” means any lease, conditional sale, installment sale, or similar agreement, defined as a capital lease in accordance with generally accepted accounting principles, that is […]

Section 8-403 – Authority to Enter Into Capital Lease; Financing Request

    (a)    The State Treasurer, with the approval of the Board of Public Works, may enter into a capital lease on behalf of one or more units of State government.     (b)    Prior to submission of a capital lease to the Board of Public Works, the Treasurer shall submit to the Legislative Policy Committee the total financing request and […]

Section 8-404 – Funding; Liability of State

    A capital lease authorized under this subtitle:         (1)    shall be contingent on the availability of appropriated or other legally available funds, not including nonappropriated pension or retirement funds, that permit the timely payment of principal, interest, and other obligations, if any, imposed by the terms of the capital lease;         (2)    may not be construed or deemed to […]

Section 8-405 – Payments on Lease

    (a)    Except for capital leases used to finance energy performance contracts excluded from tax supported debt under § 8–104 of this title, the Treasurer shall, at a reasonable market rate, capitalize the payments on a capital lease authorized under this subtitle on an annual basis for each fiscal year the lease is in effect.     (b)    The greater […]

Section 8-406 – Disposition of Lease Proceeds

    (a)    (1)    The State Treasurer may deposit the proceeds of a capital lease authorized under this subtitle in an escrow account or similar arrangement.         (2)    The proceeds may be withdrawn for the purpose of making payment due under the terms of the capital lease.         (3)    A withdrawal made under the provisions of this section shall be made in accordance […]

Section 8-407 – Compliance With Internal Revenue Code; Exclusion of Interest From Gross Income

    (a)    (1)    In this section the following words have the meanings indicated.         (2)    “Code” means the Internal Revenue Code of 1986 and includes regulations and rulings issued under that Code.         (3)    (i)    “Financial officer” means the secretary of the principal department that includes the appropriate unit or the head of the unit if the unit is an independent unit.             (ii)    “Financial […]