Section 4-247 - Trust agreement. - Maryland Statutes

§ 4-247. Trust agreement.
 

(a)  In general.-  

(1) Bonds or notes that the Administration issues may be secured by a trust agreement between the Administration and a trustee that is in or out of the State. 

(2) A trustee shall be a trust company or a bank with trust powers. 

(b)  Contents.- A trust agreement or a determination authorizing the issuance of bonds or notes may contain: 

(1) subject to then-existing agreements with bondholders or noteholders, provisions to secure payment of bonds or notes by pledging or assigning: 

(i) any of the revenues of the Administration; 

(ii) a mortgage that the Administration holds, a loan that the Administration has made, or security for the mortgage or loan; 

(iii) the proceeds of a bond or note of the Administration; or 

(iv) any combination of these and other assets of the Administration; 

(2) provisions to protect and enforce rights and remedies of bondholders or noteholders, and covenants stating the duties of or restrictions on the Administration; 

(3) provisions restricting the rights of bondholders or noteholders; 

(4) provisions that appoint one or more trust companies or banks with trust powers to act as depositaries of the proceeds of bonds or notes or of any revenues or money of the Administration, with any indemnifying bonds or securities required by the Administration allowed to be given or pledged by any depositary bank or trust company incorporated in the State; 

(5) provisions on the custody, safeguarding, and application of money of the Administration; 

(6) provisions on investments of money of the Administration as the Administration provides, notwithstanding Article 95, § 22 of the Code and §§ 6-202, 6-205, 6-206, 6-209, and 6-210 of the State Finance and Procurement Article; 

(7) provisions that establish and control all aspects of reserves, including debt service reserves; 

(8) provisions for funding or refunding bonds or notes, including redemption premiums and interest; and 

(9) any other provisions that are reasonable and proper for the security of bondholders or noteholders. 
 

[An. Code 1957, art. 83B, § 2-206(l); 2005, ch. 26, § 2.]