Marvin Mandel, Governor                         537

(a)  Issue, prior to the preparation of definitive bonds, interim
receipts or temporary bonds, with or without coupons, exchangeable
for definitive bonds when such bonds have been executed and are
available for delivery; and/or

(b)  Issue and sell its bond anticipation notes, the principal of and
interest on said notes to be made payable to the bearer or registered
holder thereof out of the first proceeds of sale of any bonds issued
under this Article, provided that the authorizing resolution may
make provision for the issuance of such bond anticipation notes in
series as funds are required and for the renewal of such notes at
maturity with or without resale. The issuance of such notes and the
details thereof, the rights of the holders thereof, and the rights,
duties and obligations of the Service in respect thereto, shall be
governed by the provisions of this Article relating to revenue bonds,
in so far as the same may be applicable.

16. Trust Agreement

(a) Bonds issued under the provisions of this Article may be
secured by a trust agreement by and between the Service and a
corporate trustee, which may be any trust company, or bank having
trust powers, within or without the State. Such trust agreement may
pledge or assign all or any part of the revenues of the Service or
of any project, and may mortgage any project or any part thereof.
Any such trust agreement or resolution authorizing the issuance of
bonds may contain such provisions for the protection and enforce-
ment of the rights and remedies of the bondholders as may be
deemed reasonable and proper, including covenants setting forth
the duties of the Service in relation to the acquisition or construction
of any project, the extension, enlargement, improvement, mainte-
nance, operation, repair and insurance of any project and the custody,
safeguarding and application of moneys and may contain provisions
for the employment of consulting engineers in connection with the
construction or operation of any project. It shall be lawful for any
bank or trust company incorporated under the laws of this State
which may act as depositary of the proceeds of the bonds or of
revenues to furnish such indemnifying bonds or to pledge such
securities as may be required by the Board of Directors. Such trust
agreement may set forth the rights and remedies of the bondholders
and of the trustee and may restrict the individual right of action
by bondholders. In addition to the foregoing, such trust agreement
may contain such other provisions as the Board of Directors may
deem reasonable and, proper for the security of the bondholders, in-
cluding, without limitation, covenants to abandon, restrict or prohibit
the construction or operation of competing facilities and covenants
pertaining to the issuance of additional parity bonds upon conditions
stated therein consistent with the requirements of this subtitle.
ARTICLE. All expenses incurred in carrying out the provisions of
any such trust agreement may be treated as a part of the cost of the
operation of any project or projects in connection with which such
bonds shall have been issued.

(b) The proceeds of the sale of bonds shall be paid to the trustee
under any trust agreement securing such bonds and shall be disbursed
in such manner and under such restrictions, if any, as may be pro-
vided in such trust agreement.