522                                             LAWS OF MARYLAND                                [Ch. 4

PROJECTS FINANCED IN WHOLE OR IN PART BY OUTSTANDING
BONDS, TO THE EXTENT THE COST IS NOT OTHERWISE
PROVIDED, (2) TO PAY THE PRINCIPAL OF AND THE INTEREST
ON THE BONDS AS THEY BECOME DUE AND PAYABLE, (3) TO
CREATE RESERVES FOR THOSE PURPOSES, AND (4) TO PROVIDE
FUNDS FOR PAYING THE COST OF RENEWALS OR REPLACEMENTS,
THE COST OF ACQUIRING OR INSTALLING EQUIPMENT, AND THE
COST OF ENLARGING, EXTENDING, RECONSTRUCTING, OR
IMPROVING ANY PROJECT OR PROJECTS. THE RENTALS,
RATES, FEES, AND CHARGES ARE NOT SUBJECT TO
SUPERVISION OR REGULATION BY ANY UNIT OF THE STATE
GOVERNMENT OR ANY POLITICAL SUBDIVISION, EXCEPT AS
PROVIDED IN § 3-130 OF THIS SUBTITLE.

REVISOR'S NOTE: This subsection is new language
derived from Article 33B, section 17 (a) of
the Code.

(B) PLEDGED FUNDS; SINKING FUNDS.—THE RENTALS,
RATES, FEES, AND OTHER CHARGES AND REVENUES, OR ANY
PART THEREOF, WHETHER DERIVED FROM THE PROJECT OR
PROJECTS IN CONNECTION WITH WHICH THE BONDS OF ANY
ISSUE HAVE BEEN ISSUED OR FROM OTHER PROJECTS,
DESIGNATED AS SECURITY FOR THE BONDS BY THE
AUTHORIZING RESOLUTION OR IN THE TRUST AGREEMENT
SECURING THE BONES, SHALL BE SET ASIDE AT THE REGULAR
INTERVALS PROVIDED IN THE RESOLUTION OR TRUST
AGREEMENT IN A SINKING FUND PLEDGED TO, AND CHARGED
WITH, THE PAYMENT OF (1) THE INTEREST ON THE BONDS AS
IT FALLS DUE, (2) THE PRINCIPAL OF THE BONDS AS IT
FALLS DUE, (3) THE NECESSARY CHARGES OF PAYING AGENTS
FOR PAYING PRINCIPAL AND INTEREST, AND (4) THE
REDEMPTION PRICE OR PURCHASE PRICE OF BONDS RETIRED BY
CALL OR PURCHASE AS PROVIDED IN THE RESOLUTION OR
TRUST AGREEMENT. ANY AMOUNTS SET ASIDE IN THE SINKING
FUND WHICH ARE NOT NEEDED TO PROVIDE FOR THE PAYMENT
OF ITEMS (1), (2), (3), AND (4) MAY BE USED FOR ANY
OTHER LAWFUL PURPOSE TO THE EXTENT PROVIDED IN THE
RESOLUTION OR TRUST AGREEMENT. THE PLEDGE IS VALID
AND BINDING FROM THE TIME IT IS MADE. THE RENTALS,
SATES, FEES, AND OTHER CHARGES, REVENUES OR OTHER
MONEY PLEDGED AND THEREAFTER RECEIVED BY THE SERVICE
IMMEDIATELY SHALL BE SUBJECT TO THE LIEN OF THE PLEDGE
WITHOUT ANY PHYSICAL DELIVERY THEREOF OR FURTHER ACT,
AND THE LIEN OF THE PLEDGE IS VALID AND BINDING AS
AGAINST ALL PARTIES HAVING ANY CLAIMS OF ANY KIND IN
TORT, CONTRACT, OR OTHERWISE AGAINST THE SERVICE,
IRRESPECTIVE OF WHETHER THE PARTIES HAVE NOTICE
THEREOF. NEITHER THE RESOLUTION NOR ANY TRUST
AGREEMENT BY WHICH A PLEDGE IS CREATED NEED BE FILED
OR RECORDED EXCEPT IN THE RECORDS OF THE SERVICE, ANY