Section 12-308 - Conditions of issuance. - Maryland Statutes

§ 12-308. Conditions of issuance.
 

(a)  In general.- A bond: 

(1) may be in bearer form; 

(2) may be registrable as to principal alone or as to both principal and interest; and 

(3) is a "security" under § 8-102 of the Commercial Law Article, whether or not the bond is one of a class or series or is divisible into a class or series of instruments. 

(b)  Execution.-  

(1) A bond shall be signed manually or in facsimile by the chief executive of the political subdivision. 

(2) An officer's signature or facsimile signature on a bond remains valid even if the officer leaves office before the bond is delivered. 

(3) The seal of the political subdivision shall be affixed to the bond and attested by the clerk or other similar administrative officer of the political subdivision. 

(c)  Maturity.-  

(1) A bond shall mature not later than 40 years after the date of issue. 

(2) Bonds may be issued as serial bonds or term bonds with provisions for a mandatory sinking fund or other annual principal redemption beginning not later than 3 years after the date of issue. 

(d)  Terms of sale.-  

(1) A bond shall be sold in the manner, at public or private (negotiated) sale, and on the terms at, above, or below par, as the political subdivision considers best. 

(2) A contract to acquire property may provide that payments shall be made in bonds. 

(3) A bond is not subject to Article 31, §§ 9, 10, and 11 of the Code. 
 

[An. Code 1957, art. 41, § 14-808; 2008, ch. 306, § 2; ch. 307, § 1.]