612

LAWS OF MARYLAND

Ch. 22

bear interest at such rate or rates not exceeding 3 1/2% per
annum, shall mature at such time or times, not exceeding 30
years from their date or dates, as may be determined by the
University of Maryland. The bonds of each issue may be
redeemable before maturity at the option of the University
of Maryland at such price or prices and under such terms and
conditions as may be fixed by the University of Maryland
prior to the issuance of the bonds. The University of
Maryland shall determine the form of the bonds, including
any interest coupons to be attached thereto, and shall fix
the denomination or denominations of the bonds and the place
or places of payment of principal and interest which may be
at any bank or trust company within or without the State.
The bonds shall be signed by the chairman of the board of
regents of the University of Maryland and the official seal
of said University shall be affixed thereto and attested by
the secretary of said board of regents and any coupons
attached thereto shall tear the facsimile signature of the
chairman of said board of regents. In case any officer
whose signature or a facsimile of whose signature shall
appear on any bonds or coupons shall cease to be such
officer before the delivery of such bonds, such signature or
such facsimile shall nevertheless be valid and sufficient
for all purposes the same as if he had remained in office
until such delivery. All bonds issued under the provisions
of this subtitle shall have and are hereby declared to have
all the qualities and incidents of negotiable instruments
under the Negotiable Instruments Law of the State. The
bonds may be issued in coupon or in registered form, or
both, as said board of regents may determine, and provision
may be made for the registration of any coupon bonds as to
principal alone and also as to both principal and interest,
and for the reconversion into coupon bonds of any bonds
registered as to both principal and interest. Said
University may sell such bonds in such manner, either at
public or private sale, and for such price, as it may
determine to be for the best interests of the State, but no
such sale shall be made at a price so low as to require the
payment of interest on the money received therefor at more
than 3 1/2% per annum, computed with relation to the
absolute maturity of the bonds in accordance with standard
tables of bond values, excluding, however, from such
computation the amount of any premium to be paid on
redemption of any bond prior to maturity.

(b) Use of proceeds. —The proceeds of the bonds of
each issue shall be used solely for the payment of the cost
of the project or projects for which such bonds shall have
been issued, and shall be disbursed in such manner and under
such restrictions, if any, as the University of Maryland may
provide in the resolution authorizing the issuance of such
bonds or in the trust agreement hereinafter mentioned
securing the same. If the proceeds of the bonds of any
issue, by error of estimates or otherwise, shall be less
than such cost, additional bonds may in like manner be
issued to provide the amount of such deficit, and, unless
otherwise provided in the resolution authorizing the
issuance of such bonds or in the trust agreement securing