2660

LAWS OF MARYLAND

[Ch. 552

BONDS ISSUED UNDER THE PROVISIONS OF THIS SUBTITLE
ARE NOT A DEBT, AND DO NOT PLEDGE THE FAITH, CREDIT, OR
TAXING POWER OF THE STATE OR OF ANY POLITICAL
SUBDIVISION, OTHER THAN THE AUTHORITY. EVERY BOND SHALL
CONTAIN ON ITS FACE A STATEMENT TO THE EFFECT THAT
NEITHER THE STATE, NOR ANY OF ITS POLITICAL SUBDIVISIONS
OTHER THAN THE AUTHORITY, IS OBLIGATED TO PAY THE BOND OR
THE INTEREST ON IT, AND THAT NEITHER THE FAITH AND CREDIT
NOR THE TAXING POWER OF THE STATE OR ANY POLITICAL
SUBDIVISION OTHER THAN THE AUTHORITY, IS PLEDGED TO THE
PAYMENT OF THE PRINCIPAL OF OR THE INTEREST ON THE BOND.

[[472]] 471. AUTHORITY AND BONDS EXEMPT FROM TAXATION.

THE EXERCISE OF THE POWERS GRANTED BY THIS SUBTITLE
IS FOR THE BENEFIT OF THE PEOPLE OF THE STATE FOR THE
IMPROVEMENT OF THEIR HEALTH AND LIVING CONDITIONS. SINCE
THE ACTIVITIES OF THE AUTHORITY CONSTITUTE THE
PERFORMANCE OF ESSENTIAL GOVERNMENTAL FUNCTIONS, THE
AUTHORITY IS EXEMPT FROM THE PAYMENT OF OR LIABILITY FOR
ANY AND ALL ORDINARY OR SPECIAL TAXES, WHETHER FEDERAL,
STATE, OR LOCAL, NOW OR HEREAFTER LEVIED OR IMPOSED, AND
ANY ASSESSMENTS OR OTHER GOVERNMENTAL CHARGES. THE BONDS
OF THE AUTHORITY ISSUED PURSUANT TO THIS SUBTITLE, THEIR
TRANSFER, THE INTEREST PAYABLE THEREON, AND ANY INCOME
DERIVED THEREFROM, INCLUDING ANY PROFIT REALIZED IN THE
SALE OR EXCHANGE THEREOF, SHALL AT ALL TIMES BE EXEMPT
FROM TAXATION OF EVERY KIND AND NATURE WHATSOEVER BY THE
STATE, OR BY ANY OF ITS POLITICAL SUBDIVISIONS, MUNICIPAL
CORPORATIONS, OR PUBLIC UNITS OF ANY KIND.

[[473]] 472. FINANCIAL AFFAIRS GENERALLY.

(A)   THE AUTHORITY MAY PROVIDE FOR THE CREATION,
CONTINUATION, AND ADMINISTRATION OF WHATEVER FUNDS,
INCLUDING RESERVE FUNDS, IT DEEMS APPROPRIATE. MONEY IN
THESE FUNDS AND OTHER MONEY OF THE AUTHORITY SHALL BE
DEPOSITED, AS DIRECTED BY THE AUTHORITY, IN ANY STATE OR
NATIONAL BANK, OR FEDERALLY OR STATE INSURED SAVINGS AND
LOAN ASSOCIATIONS LOCATED IN THE STATE HAVING A TOTAL
PAID-IN CAPITAL OF AT LEAST $1,000,000, WITH SUCH
SECURITY OR COLLATERAL AS THE AUTHORITY MAY REQUIRE. ANY
BANK OR SAVINGS AND LOAN ASSOCIATION MAY BE DESIGNATED AS
A DEPOSITORY TO RECEIVE ANY SECURITIES ACQUIRED OR OWNED
BY THE AUTHORITY. THE RESTRICTION WITH RESPECT TO
PAID-IN CAPITAL MAY BE WAIVED FOR ANY QUALIFYING BANK OR
SAVINGS AND LOAN ASSOCIATION WHICH AGREES TO PLEDGE
SECURITIES OF THE STATE OR OF THE UNITED STATES TO
PROTECT THE FUNDS AND SECURITIES OF THE AUTHORITY IN
AMOUNTS AND UNDER ARRANGEMENTS ACCEPTABLE TO THE
AUTHORITY.

(B)    ANY MONEY OF THE AUTHORITY IN ITS DISCRETION