Section 4-320 - Limitation on use of federal aid for repayment of bonds; lien and priorities in event of shortfall. - Maryland Statutes

§ 4-320. Limitation on use of federal aid for repayment of bonds; lien and priorities in event of shortfall.
 

If the Authority intends to pledge any future federal aid from any source to support repayment of any debt instrument issued under this subtitle: 

(1) The aggregate principal amount of debt issued under this subtitle or Title 3, Subtitle 6 of this article that is secured by a pledge of future federal aid may not exceed $750,000,000; 

(2) The date of maturity may not be later than 12 years after the date of issue; 

(3) Notwithstanding § 3-215(d) of this article, if future federal aid is insufficient to pay the principal of and interest on the bonds issued under this subtitle when due, the tax levied under § 3-215 of this article, to the extent the proceeds of such tax are not necessary to provide the sinking fund required under § 3-215(c) of this article, is irrevocably pledged to the payment of the principal of and interest on the bonds issued under this subtitle as they become due and payable; 

(4) The lien of the pledge under item (3) of this subsection shall at all times be subordinate to the lien of the pledge of such tax under § 3-215(d) of this article to the payment of principal of and interest on consolidated transportation bonds; and 

(5) No part of the tax levied under § 3-215 of this article may be repealed, diminished, or applied to any other purpose until: 

(i) The bonds issued under this subtitle and interest on them have become due and fully paid; or 

(ii) Adequate and complete provision for payment of the principal and interest has been made. 
 

[2004, ch. 430, § 1; 2005, chs. 471, 472.]