Sec. 1. University of Maine System. Pursuant to the Maine Revised Statutes, Title 20-A, section 10952, subsection 7, the University of Maine System shall borrow money and issue evidences of indebtedness in an amount up to $25,000,000 to fund capital improvements to support research and development in the system. The financing agreement may not exceed 15 years in duration and the interest rate may not exceed 6.5%.

Sec. 2. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Act.

2002-03

UNIVERSITY OF MAINE SYSTEM,

BOARD OF TRUSTEES OF THE

Debt Service - University

of Maine System

All Other $2,500,000

Provides funds for the first of an estimated 15 years of debt service payments on $25,000,000 of university system revenue bonds to be issued in fiscal year 2002-03 for capital improvements to support research and development in the University of Maine System. The financing agreement may not exceed 15 years in duration and the interest rate may not exceed 6.5%.

SUMMARY

This bill provides the University of Maine System with authority to issue $25,000,000 in revenue bonds for capital improvements to support research and development as part of the next phase of the university system's research and development capital improvement plan. It also provides a General Fund appropriation of $2,500,000 in fiscal year 2002-03 to support the additional debt services costs.