Maryland Governor - Executive and Administrative Departments Section 13-510

      (a)      The Corporation may provide by resolution for the issuance at one time, or in series from time to time, of revenue bonds of the Corporation to finance or refinance all or a part of the costs of a project, and for other purposes of the Corporation stated in this subtitle.

      (b)      (1)      The bonds shall be dated, shall bear interest at a rate or rates, and shall mature at a time or times not exceeding 40 years from the date or dates of their respective issues, as the Corporation may determine, and may be sold at the price or prices and under the terms and conditions fixed by the Corporation before issuing the bonds.

            (2)      The proceeds of any bonds may be placed in escrow pending application of the proceeds to the purposes for which the bonds are issued.

      (c)      (1)      (i)      The bonds may not be deemed to constitute a debt, liability, or a pledge of the full faith and credit of the State or of any political subdivision of the State other than the Corporation.

                  (ii)      The bonds shall be payable solely from the funds provided in this section.

            (2)      All bonds of the Corporation shall contain on their face a statement to the effect that:

                  (i)      Neither the State nor any political subdivision of the State other than the Corporation shall be obligated to pay the bond or the interest on the bond except from revenues pledged to the bond; and

                  (ii)      Neither the full faith and credit nor the taxing power of the State or any political subdivision of the State is pledged to the payment of the principal of or the interest on the bonds.

            (3)      (i)      The issuance of a bond under this subtitle is not directly or indirectly or contingently an obligation, moral or other, of the State or any political subdivision of the State to levy or pledge any form of taxation for the bond or to make any appropriation for payment of the bond.

                  (ii)      Nothing in this section may prevent the Corporation from pledging the full faith and credit of the Corporation to the payment of a bond authorized under this subtitle.

                  (iii)      This section does not limit the ability of the State or a subdivision of the State to set, impose, or collect an assessment, rate, fee, or charge to pay to the Corporation the cost of a project, including the principal of and interest on a bond, under an agreement between the Corporation and the State or political subdivision.

      (d)      The Corporation shall determine:

            (1)      The form of the bonds;

            (2)      The manner of executing the bonds;

            (3)      The denomination or denominations of the bonds; and

            (4)      The place or places of payment of principal and interest, which may be a bank or trust company in or outside the State.

      (e)      (1)      The bonds shall be executed in the manner determined by the Corporation.

            (2)      The bonds may be executed by facsimile signature.

            (3)      If any officer whose signature appears on a bond ceases to hold that office before the bonds are delivered, the signature of the officer remains valid and sufficient for all purposes, as if the officer had remained in office until delivery.

      (f)      (1)      All bonds issued under this section are negotiable instruments under the laws of the State.

            (2)      Provision may be made for the registration of bonds.

      (g)      (1)      The bonds shall be sold by the Corporation, at public or private sale, in a manner and for a price as the Corporation may determine.

            (2)      Bonds authorized under this section are exempt from §§ 8-206 and 8-208 of the State Finance and Procurement Article.

      (h)      (1)      (i)      The Corporation may provide for the issuance of its bonds to refunding any outstanding bonds, including the payment of any redemption premium and any interest accrued or accruing to a later date of redemption, purchase, or maturity of the bonds, and, if the Corporation determines it advisable, for the additional purpose of paying all or any part of the cost of a project.

                  (ii)      Refunding bonds may be issued by the Corporation for any corporate purpose, including the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, or alleviating an impending or actual default, or relieving the Corporation of contractual agreements which, in the opinion of the Corporation, have become unreasonably onerous, impracticable, or impossible to perform.

                  (iii)      Refunding bonds in one or more series may be issued in an amount in excess of that of the bonds to be refunded.

                  (iv)      Refunding bonds may be payable from:

                        1.      Escrowed bond proceeds;

                        2.      Interest, income, and profits, if any, on investments; and

                        3.      Any other source.

                  (v)      These sources may be in addition to other lawful uses and shall constitute revenues of a project under this subtitle.

            (2)      The proceeds of bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the Corporation, be applied to the purchase or retirement at maturity or redemption of the outstanding bonds on any subsequent redemption date, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on a date determined by the Corporation.

            (3)      (i)      Any escrowed bond proceeds, pending application, may be invested and reinvested in investments and other obligations maturing at a time or times appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds to be refunded.

                  (ii)      The investment of the bond proceeds shall be:

                        1.      Determined by the Corporation; or

                        2.      If the proceeds of the bonds are being loaned by the Corporation to a person under subsection (k) of this section, determined by the person.

                  (iii)      The interest, income, and profits, if any, earned or realized on the investments or other obligations may also be applied to the payment of the outstanding bonds to be refunded.

                  (iv)      After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investments or other obligations may be returned to the Corporation or the person being loaned the proceeds of the bonds for use in any lawful manner.

      (i)      (1)      The portion of the proceeds of any bonds issued for the purpose of paying all or any part of the cost of a project may be invested and reinvested in investments and any other obligations maturing not later than the time or times when the proceeds will be needed for the purpose of paying all or any part of the cost of the project.

            (2)      The investment of bond proceeds shall be determined:

                  (i)      By the Corporation; or

                  (ii)      If the Corporation is loaning the proceeds to a person under subsection (k) of this section, by the person.

            (3)      The interest, income, and profits, if any, earned or realized on the investments or other obligations may be applied to the payment of all or any part of the cost or may be used by the Corporation or the person being loaned the proceeds of the bonds in any lawful manner.

      (j)      (1)      The Corporation may pledge or assign all or any portion of its revenues, its rights to receive them, or moneys and securities in the funds and accounts established to secure its bonds and any lien or security interest granted or assignment made by the Corporation.

            (2)      Any pledge or assignment shall be:

                  (i)      Valid and binding against any person having a claim of any kind against the Corporation, in contract, tort, or otherwise, regardless of whether the person has notice; and

                  (ii)      Prior to the claim.

            (3)      No resolution, trust indenture, assignment, financing agreement, or other instrument creating a lien on, security interest in, or assignment of any revenues, its rights to receive revenues or moneys and securities in the funds and accounts pledged to bonds of the Corporation need be filed or recorded except in the records of the Corporation.

      (k)      (1)      The Corporation may:

                  (i)      Lend or otherwise make available the proceeds of its bonds to any person in order to finance or refinance the costs of any project; and

                  (ii)      Enter into financing agreements, mortgages, and other instruments that the Corporation determines to be necessary or desirable to evidence or secure the loan.

            (2)      If any project is leased to any person, the lease may provide that the lessee or another person may or shall purchase or otherwise acquire the project for consideration, which may be nominal, as the Corporation may establish:

                  (i)      On the payment of the bonds that financed or refinanced the cost of the project and interest on the bonds; or

                  (ii)      On provision for payment that is satisfactory to the Corporation.

      (l)      (1)      (i)      At the discretion of the Corporation, the bonds may be secured by a trust indenture by and between the Corporation and corporate trustee, which may be any trust company or bank that has the powers of a trust company in or outside the State.

                  (ii)      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, including covenants stating the duties of the Corporation in relation to the custody, safeguarding, and application of all moneys.

                  (iii)      A corporation or trust company incorporated under the laws of the State may:

                        1.      Act as depository of the proceeds of the bonds or revenues; and

                        2.      Furnish any indemnity bonds or pledge any securities that the Corporation requires.

            (2)      (i)      The resolution or trust indenture may set forth the rights and remedies of the bondholders and of any trustee, and may restrict the individual right of action of bondholders.

                  (ii)      The Corporation may provide by resolution or by the trust indenture for:

                        1.      The payment of the proceeds of the sale of the bonds and the revenues of the Corporation to an officer, board, or depository that the Corporation determines for their custody; and

                        2.      The method of disbursement, with safeguards and restrictions that the Corporation determines.

                  (iii)      All expenses incurred in carrying out any trust indenture may be treated as a part of the cost of operation of the Corporation.