Ch. 330 LAWS OF MARYLAND

SUBTITLE 5. BONDS AND OTHER OBLIGATIONS OF AN AUTHORITY

1-501.

(A) AN AUTHORITY SHALL HAVE POWER TO ISSUE BONDS FROM
TIME TO TIME IN ITS DISCRETION, FOR ANY OF ITS CORPORATE
PURPOSES. AN AUTHORITY SHALL ALSO HAVE POWER TO ISSUE
REFUNDING BONDS FOR THE PURPOSE OF PAYING OR RETIRING BONDS
PREVIOUSLY ISSUED BY IT. AN AUTHORITY MAY ISSUE SUCH TYPES OF
BONDS AS IT MAY DETERMINE, INCLUDING BONDS ON WHICH THE
PRINCIPAL AND INTEREST ARE PAYABLE:

(1) EXCLUSIVELY FROM THE INCOME AND REVENUES OF THE
HOUSING PROJECT FINANCED WITH THE PROCEEDS OF SUCH BONDS, OR
WITH SUCH PROCEEDS TOGETHER WITH A GRANT FROM THE STATE OR
FEDERAL GOVERNMENT IN AID OF SUCH PROJECT;

(2) EXCLUSIVELY FROM THE INCOME AND REVENUES OF
CERTAIN DESIGNATED HOUSING PROJECTS WHETHER OR NOT THEY
WERE FINANCED IN WHOLE OR IN PART WITH THE PROCEEDS OF SUCH
BONDS; OR

(3) FROM ITS REVENUES GENERALLY. ANY OF SUCH BONDS
MAY BE ADDITIONALLY SECURED BY PLEDGE OF ANY REVENUES OR A
MORTGAGE OF ANY HOUSING PROJECT, PROJECTS, OR OTHER
PROPERTY OF THE AUTHORITY.

(B) NEITHER THE COMMISSIONERS OF AN AUTHORITY NOR ANY
PERSON EXECUTING THE BONDS SHALL BE LIABLE PERSONALLY ON THE
BONDS BY REASON OF THE ISSUANCE THEREOF. THE BONDS AND OTHER
OBLIGATIONS OF AN AUTHORITY (AND SUCH BONDS AND OBLIGATIONS
SHALL SO STATE ON THEIR FACE) MAY NOT BE A DEBT OF THE CITY, THE
COUNTY, THE STATE, OR ANY POLITICAL SUBDIVISION THEREOF AND
NEITHER THE CITY, THE COUNTY, NOR THE STATE OR POLITICAL
SUBDIVISION THEREOF SHALL BE LIABLE THEREON, NOR IN ANY EVENT
SHALL SUCH BONDS OR OBLIGATIONS BE PAYABLE OUT OF ANY FUNDS
OR PROPERTIES OTHER THAN THOSE OF SAID AUTHORITY. THE BONDS
MAY NOT CONSTITUTE AN INDEBTEDNESS WITHIN THE MEANING OF
ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR
RESTRICTION. BONDS OF AN AUTHORITY ARE DECLARED TO BE ISSUED
FOR AN ESSENTIAL PUBLIC AND GOVERNMENTAL PURPOSE AND ANY
BONDS ISSUED UNDER THE PROVISIONS OF THIS ARTICLE, THEIR
TRANSFER AND THE INCOME THEREFROM, INCLUDING ANY PROFIT
MADE ON THE SALE THEREOF, SHALL AT ALL TIMES BE FREE FROM
TAXATION OF EVERY KIND BY THE STATE AND BY THE MUNICIPALITIES
AND ALL OTHER POLITICAL SUBDIVISIONS OF THE STATE.

(C) BONDS ISSUED BY AN AUTHORITY SHALL BE DEEMED TO BE
NEGOTIABLE FOR THE PURPOSES OF THE UNIFORM COMMERCIAL CODE
OF THIS STATE, SUBJECT TO PROVISIONS FOR REGISTRATION THEREOF.

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