2013 Maryland Code
STATE FINANCE AND PROCUREMENT
§ 8-123 - Public sale of State bonds

§8-123.

(a) Except as otherwise provided in this subtitle, the Board shall offer State bonds at a public sale.

(b) (1) At least 10 days before the date of a public sale, the Board shall give public notice of the sale.

(2) The notice shall state the date, time, and place of the public sale.

(c) (1) Except as provided in paragraph (2) of this subsection, at a public sale, the Board shall sell State bonds for cash to the responsible bidder who:

(i) offers the lowest net interest cost to the State; or

(ii) meets other terms or conditions of sale or issuance that the Board has set.

(2) Whenever the Board determines that no bid is satisfactory and that it is in the best interests of the State to reject all bids, the Board may reject the bids.

(d) (1) By resolution, the Board may postpone the time for receipt of proposals for the bonds without republishing the form of advertisement for the bonds.

(2) (i) The Treasurer shall provide notice of the new date and time of sale not less than 24 hours prior to the time proposals are to be submitted, which date may not be more than 30 days after the originally scheduled date of sale.

(ii) The notice may be given by Munifacts News Service or a similar service or such other method as the Treasurer deems appropriate.

§ 8-123 - 1. Sale of capital appreciation bonds

(a) Designation. -- In accordance with the authority to issue capital appreciation bonds under § 8-121 of this subtitle, the Board, in a resolution setting forth the terms and conditions of any State bond issue, may designate that all or a portion of the State bonds be issued as capital appreciation bonds.

(b) Sale. -- The Board may sell the capital appreciation bonds at a negotiated sale if the Board determines that a negotiated sale will provide greater access to investors who are residents of the State of Maryland.

§ 8-123 - 2. Sale of small denomination bonds

(a) "Small denomination bonds" defined. -- In this section, "small denomination bonds" means bonds in denominations of $ 5,000 or less.

(b) Designation. -- In accordance with § 8-121 of this subtitle, the Board, in a resolution setting forth the terms and conditions of any State bond issue, may designate that all or a portion of the State bonds be issued as small denomination bonds.

(c) Form of issue. -- Small denomination bonds may be issued in any form permitted under § 8-121 of this subtitle.

(d) Sale at negotiated sale. -- The Board may sell small denomination bonds at a negotiated sale if the Board determines that a negotiated sale will:

(1) result in either a more efficient or economical sale of the bonds; or

(2) provide greater access to investors who are residents of the State of Maryland.

§ 8-123 - 3. College savings bonds

(a) In general. -- In considering the structure of a State of Maryland capital appreciation general obligation bond issue, the Board of Public Works shall be sensitive to the need to help Maryland citizens save for the costs of college.

(b) Recommendations. -- The Maryland College Savings Bond Advisory Board, created under § 20-101 of the Education Article, shall make recommendations to the Board of Public Works regarding the need for Maryland capital appreciation general obligation bonds for college savings.

§ 8-123 - 4. Variable interest rate bonds

(a) Designation. -- Except as provided in subsection (c) of this section, in accordance with the authority to issue variable interest rate bonds under § 8-121 of this subtitle, the Board, in a resolution setting forth the terms and conditions of a State bond issue, may designate that all or a portion of the State bonds be issued as variable interest rate bonds.

(b) Sale of bonds. -- The Board may sell variable interest rate bonds at a private, negotiated sale on the terms and conditions that the Board determines to be most advantageous to the State.

(c) Aggregate par value. -- At the time of issuance, the aggregate par value of the State's general obligation variable interest rate bonds shall comprise no more than 15% of the outstanding general obligation indebtedness of the State.