Section 9-941 - Principal and interest; maturity; form; negotiability; registration; reconversion. - Maryland Statutes

§ 9-941. Principal and interest; maturity; form; negotiability; registration; reconversion.
 

(a)  Principal and interest.- An authority shall pay the principal of and interest on its bonds only from the funds from which this subtitle authorizes payment. 

(b)  Date of issue, maturity, and redemption of bonds.- For any bond that an authority issues, the authority: 

(1) Shall place the date of issue on the bond; 

(2) Shall set the maturity date for the bond, which shall be any time up to 40 years from the date of issue; and 

(3) May provide for the redemption of the bond before maturity: 

(i) At the option of the authority; and 

(ii) At a price and on terms and conditions that the authority fixes before it issues the bond. 

(c)  Validity of bonds or coupons signed by former officer.- A bond or certificate that otherwise conforms to this section is valid and sufficient for all purposes whether or not the officer whose signature or a facsimile of whose signature is on the bond or certificate is still an officer when the bond or certificate is delivered. 

(d)  Form of bonds.- An authority: 

(1) Shall determine the form of its bond; and 

(2) May issue its bonds in coupon or registered form or both. 

(e)  Manner of execution, denomination, and place of payment of bonds.- An authority shall determine: 

(1) The manner of execution of its bonds; 

(2) The denominations of its bonds; and 

(3) The places for payment of the principal of and interest on its bonds, which may be any bank or trust company. 

(f)  Negotiability.- A bond issued under this subtitle is fully negotiable as provided in Title 8 of the Commercial Law Article. 

(g)  Registration and reconversion of bonds.- An authority may provide for: 

(1) The registration of any coupon bond as to: 

(i) Principal only; or 

(ii) Both principal and interest; and 

(2) The reconversion into a coupon bond of any bond that is registered as to both principal and interest. 
 

[1985, ch. 173, § 2.]