Maryland Governor - Executive and Administrative Departments Section 13-111

      (a)      The Authority may provide by resolution for the issuance at one time, or in series from time to time, of negotiable revenue bonds of the Authority in an amount not to exceed $25,000,000 in the aggregate, for the purpose of paying all or a part of the cost of developments or projects, and for all other purposes set out in this subtitle. Such bonds shall be executed in such manner as determined by the Authority.

      (b)      The bonds shall be dated, shall bear interest at such rate or rates, payable semiannually, and shall mature at such time or times not exceeding 40 years from the date or dates of their respective issues as may be determined by the Authority, and may be made redeemable before maturity, at the option of the Authority, at such price or prices and under such terms and conditions as may be fixed by the Authority prior to the issuance of the bonds. The principal of and the interest on such bonds may be made payable in any lawful medium.

      (c)      Revenue bonds issued under the provisions of this section shall not be deemed to constitute a debt of the State or of any political subdivision thereof or a pledge of the faith and credit of the State or of any such political subdivision, but the bonds shall be payable solely from the funds herein provided therefor from development or project revenues. All revenue bonds shall contain on the face thereof a statement to the effect that neither the Authority nor the State nor any political subdivision thereof is obligated to pay the principal or the interest thereon except from development or project revenues pledged to the payment of the bonds.

      (d)      The Authority shall determine the form of the revenue bonds, the manner of executing the bonds, the denomination or denominations of the bonds, and the place or places of payment of principal and interest thereof, which may be a bank or trust company within or without the State.

      (e)      The revenue bonds shall be executed in such manner as may be determined by the Authority. If any officer whose signature or facsimile thereof appears on any bond ceases to be such officer before the delivery of bonds, the signature or facsimile thereof shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until the delivery.

      (f)      All revenue bonds issued under the provisions of this section have and are hereby declared to have, as between successive holders, all the qualities and incidents of negotiable instruments under the negotiable instruments law section of the Uniform Commercial Code of this State.

      (g)      The revenue bonds shall be sold by the Authority, at public or private sale, in such manner and for such price as it may determine to be for its best interests. None of the provisions of §§ 8-206 and 8-208 of the State Finance and Procurement Article have any application to the bonds hereby authorized and such bonds are explicitly exempted therefrom.

      (h)      If the proceeds of the revenue bonds, by error of calculation or otherwise, are less than the amount required for the purpose for which bonds are authorized, additional bonds may be issued to provide the amount of the deficit, and unless otherwise provided by the authorizing resolution or in the trust indenture hereinafter mentioned, the additional bonds shall be deemed to be of the same issue and may be entitled to payment from the same funds without preference or priority of the bonds first issued for such purposes.

      (i)      Prior to the preparation of definitive revenue bonds, the Authority, under the restrictions, may issue temporary revenue bonds, exchangeable for definitive bonds upon the issuance of the latter. The Authority also may provide for the replacement of any bonds which become mutilated or are destroyed or lost. The bonds may be issued without an election or any other proceedings or the happening of any conditions or things other than those proceedings, conditions, and things specified and required by this subtitle.

      (j)      A resolution providing for the issuance of revenue bonds also may provide for the issuance of additional bonds and may limit the amount by the resolution or trust indenture, for the purpose of paying the cost of any extensions, additions, and improvements which thereafter become necessary; the additional bonds may be sold from time to time in the manner hereinabove provided and shall be deemed a part of the original issue authorized by the resolution, and shall be issued under such restrictions and limitations as prescribed by the resolution or trust indenture.

      (k)      The Authority may provide by resolution for the issuance of its revenue refunding bonds for the purpose of refunding any bonds then outstanding and issued under the provisions of this section. The issuance of such refunding bonds, the details thereof, the rights of the holders thereof, and the duties of the Authority in respect to them shall be governed by the provisions of this section insofar as applicable. The refunding bonds shall mature at such time or times not exceeding 40 years from the date or dates of their respective issues as determined by the Authority.

      (l)      The Authority may provide by resolution for the issuance of a single issue of its revenue bonds for the combined purposes of (1) paying the cost of any improvement, extension, enlargement, or reconstruction of a development or project and (2) refunding its bonds theretofore issued for such development or project and then outstanding and which shall then have matured or be subject to redemption or can be acquired for retirement. The revenue refunding bonds shall mature at such time or times not exceeding 40 years from the date or dates of their respective issues as may be determined by the Authority.

      (m)      All moneys received from any revenue bonds issued and sold under the provisions of this section shall be applied solely for the purposes for which the bonds are authorized or to a reserve fund created for the payment of the bonds, and there is created and granted a lien upon such moneys until so applied in favor of the holders of the bonds or paid to the trustee hereinafter provided for the bonds.

      (n)      In the discretion of the Authority, the revenue bonds may be secured by a trust indenture by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside of the State. Such trust indenture may pledge or assign revenues to be received from the development or project, but it shall not convey or mortgage the development or project or any part or parts thereof except with the express consent of the Board of Public Works. The trust indenture may provide that any money realized from the sale or the disposition of any of the land, buildings, structures, facilities, equipment and other property of a development or project may be used to pay the interest on and principal of the revenue bonds. Either the resolution providing for the issuance of bonds or the trust indenture may contain provisions for protecting and enforcing the rights and remedies of the bondholders as reasonable and proper, not in violation of law, including covenants setting forth the duties of the Authority in relation to the construction, acquisition, improvement, installation, maintenance, operation, repairs, and insurance of the development or project and the custody, safeguarding, and application of all moneys; and may provide that the development or project be constructed and paid for under the supervision and approval of consulting engineers employed or designated by the Authority and satisfactory to the original purchasers of the bonds issued hereunder; and may further provide that the security given by contractors and by any depositary of the proceeds of the bonds or revenues of the development or project or other moneys pertaining thereto be satisfactory to the purchasers. It shall be lawful for any bank or trust company incorporated under the laws of this State to act as depositary of the proceeds of the bonds or revenue and to furnish such indemnity bonds or to pledge such securities as may be required by the Authority.

      The resolution or trust indenture may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action of bondholders as is customary in trust indentures securing bonds and debentures of corporations. Except as in this subtitle otherwise provided, the Authority may provide by resolution or by the trust indenture for the payment of the proceeds of the sale of the bonds and the revenue of a development or project to such officer, board, or depositary as it determines for the custody thereof, and for the method of disbursement thereof, with such safeguards and restrictions as it determines. All expenses incurred in carrying out such trust indenture may be treated as a part of the cost of maintenance, operation and repair of a development or project.