2340                                   LAWS OF MARYLAND                           Ch. 240

(E) SAME -- OTHER USES.

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 DOES NOT
OTHERWISE REQUIRE:

(1) THE DISTRICT SHALL USE THE SURPLUS TO PAY
THE NEXT PAYMENT OF PRINCIPAL ON THE BONDS;

(2) THE SANITARY COMMISSION SHALL ADOPT A
RESOLUTION THAT AUTHORIZES THE USE OF THE SURPLUS TO PAY FOR
OTHER PROJECTS THAT ARE IN THE SAME SERVICE AREAS AS THE
PROJECTS FOR WHICH THE BONDS WERE ISSUED AND THEN USE THE
SURPLUS IN ACCORDANCE WITH THE RESOLUTION; OR

(3) THE DISTRICT SHALL USE THE SURPLUS TO CANCEL
BONDS OF THE SAME SERIES BY BUYING THE BONDS ON THE OPEN
MARKET AT A PRICE THAT:

(I) DOES NOT INCLUDE A PREMIUM OF MORE
THAN 5 PERCENT OF THE PAR VALUE; AND

(II) THE SANITARY COMMISSION DETERMINES TO
BE IN THE BEST INTERESTS OF THE DISTRICT AND THE MEMBER
COUNTIES SERVED BY THE PROJECTS FOR WHICH THE BONDS HAVING
EXCESS PROCEEDS WERE ISSUED.

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

Throughout this section, for consistency and
clarity, the term "series" is used to describe
a collection of bonds issued with respect to a
project specifically identified as being related
to that collection of bonds. The third sentence
of former Article 43, § 654(b) used the term
"series" in similar context.

9-693. REFUNDING BONDS.

IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBTITLE THAT
GENERALLY GOVERN THE ISSUANCE OF BONDS, ANY DISTRICT MAY
ISSUE REFUNDING BONDS TO REFUND, PAY, OR DISCHARGE THE
PRINCIPAL OR INTEREST OF:

(1) ANY OTHER BOND ISSUED UNDER THIS SUBTITLE;
AND

(2) ANY OTHER INDEBTEDNESS INCURRED TO ACQUIRE
OR CONSTRUCT A PROJECT.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Article