Section 10-221 - Bonds - Trust agreement. - Maryland Statutes

§ 10-221. Bonds - Trust agreement.
 

(a)  Corporate trustee.-  

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

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

(1) provide for the protection and enforcement of rights and remedies of bondholders, including covenants setting forth the duties of the Authority in relation to: 

(i) acquisition, improvement, maintenance, operation, and insurance of the development or project; and 

(ii) custody, safeguarding, and application of money; 

(2) provide for the rights and remedies of bondholders and of the trustee; 

(3) restrict the individual right of action by bondholders as is customary in trust agreements securing bonds of corporations; 

(4) provide for the deposit of the proceeds of the sale of bonds and the revenue of a development or project with an officer, board, or depositary that the Authority designates as custodian; and 

(5) provide for the method of disbursing the proceeds and revenues with safeguards and restrictions that the Authority determines. 

(c)  Security for bonds.-  

(1) Except as provided in paragraph (2) of this subsection and § 10-222 of this subtitle, a trust agreement may pledge or assign revenues to be received from the development or project. 

(2) No portion of a development or project may be conveyed or mortgaged without the express consent of the Board of Public Works. 

(d)  Use of proceeds.- The trust agreement may authorize the use of money realized from the sale or disposition of any of the property of a development or project to pay principal of and interest on the bonds. 

(e)  Expenses.- Expenses incurred in carrying out a trust agreement may be treated as part of the cost of maintenance, repair, and operation of a development or project. 

(f)  Authority of bank or trust company.- A bank or trust company incorporated in the State may act as a depositary of the proceeds of the bonds or the revenues and furnish indemnity bonds or pledge securities as required by the Authority. 
 

[An. Code 1957, art. 41, § 13-111(m); 2008, ch. 306, § 2.]