HARRY HUGHES, Governor

2339

reference to "in the name of such district" is
deleted as unnecessary.

9-691. REPLACEMENT OF BONDS.

A SANITARY COMMISSION MAY PROVIDE FOR THE REPLACEMENT
OF BONDS THAT ARE MUTILATED, DESTROYED, OR LOST.

REVISOR'S NOTE: This section is new language derived
without substantive change from the second
sentence of former Article 43, § 654(c).

9-692. USE OF BOND PROCEEDS.

(A)  IN GENERAL.

A DISTRICT MAY USE THE PROCEEDS FROM BONDS ISSUED UNDER
THIS SUBTITLE ONLY:

(1) TO PAY COSTS INCURRED FOR THE PROJECTS FOR
WHICH THE BONDS WERE ISSUED; OR

(2) IN ACCORDANCE WITH THIS SECTION.

(B)  TERMS OF AUTHORIZING RESOLUTION.

THE DISTRICT SHALL DISBURSE THE PROCEEDS AS THE
SANITARY COMMISSION PROVIDED IN ITS AUTHORIZING RESOLUTION.

(C)  POWER TO ISSUE ADDITIONAL BONDS.

(1) IF THE PROCEEDS FROM BONDS ISSUED UNDER THIS
SUBTITLE ARE INSUFFICIENT TO PAY THE COSTS INCURRED FOR THE
PROJECTS FOR WHICH THE BONDS WERE ISSUED, THE DISTRICT MAY
ISSUE ADDITIONAL BONDS TO MAKE UP THE DEFICIT.

(2) UNLESS THE SANITARY COMMISSION PROVIDED
OTHERWISE IN ITS AUTHORIZING RESOLUTION, BONDS ISSUED UNDER
THIS SUBSECTION:

(I) ARE DEEMED TO BE FROM THE SAME SERIES
THAT ORIGINALLY WAS ISSUED FOR THE PROJECT; AND

(II) SHALL BE REPAID WITHOUT PREFERENCE TO
OR PRIORITY FOR THE BONDS THAT ALREADY WERE ISSUED FOR THE
PROJECT.

(D)  USE OF EXCESS PROCEEDS -- RETIRING BONDS.

IF THE PROCEEDS FROM BONDS ISSUED UNDER THIS SUBTITLE
EXCEED THE COSTS INCURRED FOR THE PROJECTS FOR WHICH THE
BONDS WERE ISSUED AND IF THE AUTHORIZING RESOLUTION SO
REQUIRES, THE DISTRICT SHALL USE THE SURPLUS TO RETIRE BONDS
OF THE SAME SERIES.