2013 Maryland Code
ECONOMIC DEVELOPMENT
§ 10-221 - Bonds -- Trust agreement

§10-221.

(a) (1) The Authority may secure a bond by a trust agreement between the Authority and a corporate trustee.

(2) A corporate trustee may be any trust company or bank that has the powers of a trust company in or outside the State.

(b) The trust agreement or the resolution that provides for the issuance of a bond may:

(1) provide for the protection and enforcement of rights and remedies of bondholders, including covenants setting forth the duties of the Authority in relation to:

(i) acquisition, improvement, maintenance, operation, and insurance of the development or project; and

(ii) custody, safeguarding, and application of money;

(2) provide for the rights and remedies of bondholders and of the trustee;

(3) restrict the individual right of action by bondholders as is customary in trust agreements securing bonds of corporations;

(4) provide for the deposit of the proceeds of the sale of bonds and the revenue of a development or project with an officer, board, or depositary that the Authority designates as custodian; and

(5) provide for the method of disbursing the proceeds and revenues with safeguards and restrictions that the Authority determines.

(c) (1) Except as provided in paragraph (2) of this subsection and § 10-222 of this subtitle, a trust agreement may pledge or assign revenues to be received from the development or project.

(2) No portion of a development or project may be conveyed or mortgaged without the express consent of the Board of Public Works.

(d) The trust agreement may authorize the use of money realized from the sale or disposition of any of the property of a development or project to pay principal of and interest on the bonds.

(e) Expenses incurred in carrying out a trust agreement may be treated as part of the cost of maintenance, repair, and operation of a development or project.

(f) A bank or trust company incorporated in the State may act as a depositary of the proceeds of the bonds or the revenues and furnish indemnity bonds or pledge securities as required by the Authority.