2013 Maryland Code
ECONOMIC DEVELOPMENT
§ 10-515 - Bonds -- Trust agreement

§10-515.

(a) (1) The Corporation may secure a bond by a trust agreement between the Corporation 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.

(3) A corporation or trust company incorporated in the State may:

(i) act as depository of bond proceeds or revenue; and

(ii) furnish any indemnity bond or pledge security that the Corporation requires.

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

(1) state the rights and remedies of bondholders and any trustee;

(2) contain provisions to protect and enforce the rights and remedies of bondholders;

(3) contain covenants stating the duties of the Corporation as to the custody, safeguarding, and application of money;

(4) restrict the individual right of action of bondholders;

(5) provide for the payment of the bond proceeds and revenues to an officer, board, or depository that the Corporation determines with the safeguards and restrictions that the Corporation determines; and

(6) provide for the method of disbursement of the bond proceeds and revenues, with the safeguards and restrictions that the Corporation determines.

(c) Expenses incurred in carrying out a trust agreement may be treated as a part of the cost of operation of the Corporation.