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LAWS OF MARYLAND

Ch. 586

CHAPTER 586

(Senate Bill 975)

AN ACT concerning

Public Debt - Bond and Grant Anticipation Notes

FOR the purpose of providing that bond anticipation notes
and grant anticipation notes may be issued as notes in
the nature of commercial paper; providing that bond and
grant anticipation notes in the nature of commercial
paper may be secured by a trust indenture and by a
letter of credit, line of credit, or other credit
arrangement from or with a bank or other lending
institution; providing that grant anticipation notes
shall be payable out of the proceeds of the grant or
grants; and generally relating to bond and grant
anticipation notes.

BY repealing and reenacting, with amendments,

Article 31 - Debt - Public

Section 12(a) and (i)

Annotated Code of Maryland

(1976 Replacement Volume and 1980 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 31 - Debt - Public

12.

(a) Any public body and any municipal corporation,
including the mayor MAYOR and city council CITY COUNCIL of
Baltimore and those municipal corporations subject to the
provisions of Article 11E of the State Constitution, now or
hereafter authorized to issue its bonds or other obligations
for any proper public purpose, at one time or from time to
time may issue and sell its bond anticipation notes, in
aggregate amount not greater than the authorized amount of
the bonds in anticipation of the sale of which the notes are
issued and sold, the principal of and interest on the notes
to be made payable to the bearer or registered holder
thereof out of the first proceeds of sale of the bonds, or
from the tax or other revenue which the public body or
municipal corporation shall have previously determined to
apply to the payment of the bonds and the interest thereon.
The proceeds of sale of the notes, after payment from the
proceeds of the expenses of the issuance the notes, shall be
expended only on the public purposes for which the bonds are
authorized. Twelve months' interest on the notes, or any