488                               Laws of Maryland                      [Ch. 178

150.    Refunding Bonds.

(a)  The authority AUTHORITY is hereby authorized to provide
for the issuance of its bonds or notes for the purpose of refunding
any bonds or notes of the Authority then outstanding, including the
payment of any redemption premium thereon and any interest
accrued or to accrue to the earliest or subsequent date of redemp-
tion, purchase or maturity of such bonds or notes, and, if deemed
advisable by the Authority, for the additional purpose of paying all
or any part of the cost of constructing and acquiring additions,
improvements, extensions, or enlargements of a facility or any por-
tion thereof or of paying all or any part of the cost of constructing
and acquiring new facilities.

(b)   The proceeds of any such bonds or notes issued for the pur-
pose of refunding outstanding bonds or notes may, in the discretion
of the Authority, be applied to the purchase or retirement at ma-
turity or redemption of such outstanding bonds or notes either on
their earliest or any subsequent redemption date, and may pending
such application, be placed in escrow to be applied to such purchase
or retirement at maturity or redemption on such date as may be
determined by the Authority.

(c)  Any such escrowed proceeds, pending such use, may be in-
vested and reinvested in obligations of or guaranteed by the United
States of America, or in certificates of deposit or time deposits
secured by obligations of or guaranteed by the United States of
America, maturing at such time or times as shall be appropriate to
assure the prompt payment, as to principal, interest and redemption
premium, if any, of the outstanding bonds or notes to be so refunded.
The interest, income and profits, if any, earned or realized on any
such investment may also be applied to the payment of the outstand-
ing bonds or notes to be so refunded. After the terms of the escrow
have been fully satisfied and carried out, any balance of such pro-
ceeds and interest, income and profits, if any, earned or realized on
the investments thereof may be returned to the Authority for use
by it in any lawful manner.

(d)  The portion of the proceeds of any such bonds or notes issued
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions or
enlargements of a facility or of paying all or any part of the cost of
constructing and acquiring new facilities, may be invested and rein-
vested in obligations of or guaranteed by the United States of
America, or in certificates of deposit or time deposits secured by
obligations of or guaranteed by the United States of America, ma-
turing not later than the time or times when such proceeds will be
needed for the purpose of paying all or any part of such cost. The
interest, income and profits, if any, earned or realized on such invest-
ment may be applied to the payment of all or any part of such cost
or may be used by the corporation in any lawful manner.

(e)  All such bonds shall be issued and shall be subject to the pro-
visions of this subtitle in the same manner and in the same extent as
any other bonds issued pursuant to this subtitle.

151.    Bonds not debt or liability of State or political subdivision.

Bonds issued under the provisions of this subtitle shall not be
deemed to constitute a debt or liability of the State of Maryland or