2013 Maryland Code
TRANSPORTATION
§ 4-320 - Limitation on use of federal aid for repayment of bonds; lien and priorities in event of shortfall

§4-320.

If the Authority intends to pledge any future federal aid from any source to support repayment of any debt instrument issued under this subtitle:

(1) The aggregate principal amount of debt issued under this subtitle or Title 3, Subtitle 6 of this article that is secured by a pledge of future federal aid may not exceed $750,000,000;

(2) The date of maturity may not be later than 12 years after the date of issue;

(3) Notwithstanding § 3-215(d) of this article, if future federal aid is insufficient to pay the principal of and interest on the bonds issued under this subtitle when due, the tax levied under § 3-215 of this article, to the extent the proceeds of such tax are not necessary to provide the sinking fund required under § 3-215(c) of this article, is irrevocably pledged to the payment of the principal of and interest on the bonds issued under this subtitle as they become due and payable;

(4) The lien of the pledge under item (3) of this subsection shall at all times be subordinate to the lien of the pledge of such tax under § 3-215(d) of this article to the payment of principal of and interest on consolidated transportation bonds; and

(5) No part of the tax levied under § 3-215 of this article may be repealed, diminished, or applied to any other purpose until:

(i) The bonds issued under this subtitle and interest on them have become due and fully paid; or

(ii) Adequate and complete provision for payment of the principal and interest has been made.

§ 4-320 - 1. Bond anticipation notes

(a) Issuance. -- The Authority may issue bond anticipation notes secured by a pledge of a line of credit extended to the State under the federal Transportation Infrastructure Finance and Innovation Act.

(b) Maturity date. -- Notes issued under this section shall have a maturity date of up to 3 years after the date of issue.

(c) Pledge of a line of credit. -- A pledge of a line of credit as authorized under this section does not constitute the pledge of future federal revenues, and notes issued under this section are not subject to § 3-601(d) of this article or § 4-320 of this subtitle.