HARRY HUGHES, Governor

2351

renewal thereof, may be paid from the proceeds, or from the
proceeds of the sale of the bonds, accounting from the
initial date of issue thereof. The notes shall be
authorized by ordinance, resolution, or other form of
official action customarily used by the public body or
municipal corporation, which shall cite the authority for
the notes and bonds and the amount authorized, shall fix the
maturities, interest rates or the manner of determining the
same, and other terms of such bond anticipation notes, the
price or prices at which the notes will be sold, which may
be at, above or below the face value thereof, OR THE MANNER
OF DETERMINING THE PRICE OR PRICES AT WHICH THE NOTES WILL
BE SOLD and the manner of their sale, which may be by
private negotiation by the public body or municipal
corporation with a prospective purchaser or purchasers if
deemed by the public body or municipal corporation to be for
its best interest. The resolution or ordinance may provide
for the issuance of the notes, pursuant to the sale, in
series as funds are required, and may also provide for the
renewal of the notes at maturity with or without resale. All
such notes shall be signed, endorsed or guaranteed in the
same manner as shall be provided by law for the bonds in
anticipation of which the notes are issued, and no such
notes shall be issued under this subsection unless so
signed, endorsed, or guaranteed. BOND ANTICIPATION NOTES
AUTHORIZED BY THIS SECTION 12(A) MAY BE ISSUED AS NOTES IN
THE NATURE OF COMMERCIAL PAPER AND, IF SO ISSUED, MAY, IN
THE DISCRETION OF THE PUBLIC BODY OR MUNICIPALITY ISSUING
THE NOTES, BE SECURED BY A TRUST INDENTURE WITH A CORPORATE
TRUSTEE OR TRUSTEES, WHICH MAY BE ANY TRUST COMPANY OR BANK
HAVING THE POWERS OF A TRUST COMPANY WITHIN OR WITHOUT THE
STATE, AND BY A LETTER OF CREDIT, LINE OF CREDIT, OR OTHER
CREDIT ARRANGEMENT FROM OR WITH A BANK OR OTHER LENDING
INSTITUTION. THE LETTER OF CREDIT, LINE OF CREDIT, OR OTHER
CREDIT ARRANGEMENT MAY BE MADE PAYABLE 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.

(i) Any public body and any municipal
MUNICIPAL corporation, including the Mayor and City Council
of Baltimore and those municipal corporations subject to the
provisions of Article 11E of the State Constitution, may
from time to time issue and sell notes in anticipation of
the receipt of grants either from the federal or State
government or from any of their agencies in aggregate
amount, including interest, not greater than the grant or
grants in anticipation of the receipt of which the notes are
issued and sold. The principal of and interest on the notes
shall be payable out of the [first] proceeds of the grant or
grants, and the issuer shall so covenant. Grant
anticipation notes may be sold only after receipt of written
commitment of the federal or State government or agency or
agencies making the grant or grants. Authorization,
issuance, sale, and delivery of grant anticipation notes
shall be undertaken on substantially the same procedure,