Both expended and encumbered or can be one
<p>Quoting the Maryland Capital Consolidated Bond Loan bill from the 2018 legislative session (Chapter 9 - Senate bill 186), 1(7): </p>

<blockquote>
  <p>“The proceeds of the loan must be expended or encumbered by the Board of Public Works for the purposes provided in this Act no later than June 1, 2025. If any funds authorized by this Act remain unexpended or unencumbered after June 1, 2025, the amount of the unexpended or unencumbered authorization shall be canceled and of no further force and effect.”</p>
</blockquote>

<p>The question is two-part:</p>

<ul>
<li>Does expended refer to by the Board of Public works?</li>
<li>If one has funds that remain unexpended but no funds that are not unencumbered, are the funds unexpended subject to cancelation? 

<ul>
<li>As an example: $1,000,000 proceeds; $600,000 expended; $1,000,000 encumbered by the Board. Are the $400,000 unexpended funds subject to cancelation?</li>
</ul></li>
</ul>

<blockquote>
  <p>Does expended refer to by the Board of Public works?</p>
</blockquote>

<p>Yes.</p>

<blockquote>
  <p>If one has funds that remain unexpended but no funds that are not
  unencumbered, are the funds unexpended subject to cancelation?</p>
  
  <p>As an example: $1,000,000 proceeds; $600,000 expended; $1,000,000
  encumbered by the Board. Are the $400,000 unexpended funds subject to
  cancelation?</p>
</blockquote>

<p>No.</p>

maryland legislative-intent