3088

LAWS OF MARYLAND

Ch. 488

(2) A DEFAULT RESERVE FUND MAY BE ESTABLISHED
FOR ANY SERIES OR ISSUE OF BONDS.

(B) (1) THE AUTHORITY MAY RECEIVE MONEYS, ENDOWMENTS,
PROPERTIES, AND GUARANTEES AS IT DETERMINES APPROPRIATE AND,
IF NECESSARY, TAKE TITLE IN THE NAME OF THE AUTHORITY OR IN
THE NAME OF A PARTICIPATING INSTITUTION OR A TRUSTEE.

(2) WHEN THE PRINCIPAL OF AND INTEREST ON BONDS
OF THE AUTHORITY ISSUED TO FINANCE THE COST OF ANY EDUCATION
LOAN FINANCING PROGRAM OR PROGRAMS, INCLUDING ANY REFUNDING
BONDS ISSUED TO REFUND OR REFINANCE ANY BONDS, HAVE BEEN
FULLY PAID AND RETIRED OR WHEN ADEQUATE PROVISION HAS BEEN
MADE TO FULLY PAY AND RETIRE THE BONDS, AND ALL OTHER
CONDITIONS OF THE BOND RESOLUTION AUTHORIZING THE BONDS HAVE
BEEN SATISFIED AND THE LIEN CREATED BY THE BOND RESOLUTION
HAS BEEN RELEASED, THE AUTHORITY SHALL PROMPTLY DO THE
THINGS AND EXECUTE THE DEEDS AND CONVEYANCES NECESSARY AND
REQUIRED TO CONVEY ANY REMAINING MONEYS, PROPERTIES, AND
OTHER ASSETS COMPRISING LOAN FUNDING DEPOSITS TO THE
PARTICIPATING INSTITUTIONS IN PROPORTION TO THE AMOUNTS
FURNISHED BY THE RESPECTIVE INSTITUTIONS.

18-1309. BONDS.

(A) (1) THE AUTHORITY MAY AT ANY TIME AND FROM TIME TO
TIME ISSUE BONDS FOR ANY CORPORATE PURPOSE.

(2) THE BONDS OF EACH ISSUE SHALL BE PAYABLE
SOLELY OUT OF REVENUES OF THE AUTHORITY, INCLUDING, WITHOUT
LIMITATION:

(I)  PRINCIPAL AND INTEREST ON AUTHORITY
LOANS AND EDUCATION LOANS;

(II)  PAYMENTS BY INSTITUTIONS, BANKS,
INSURANCE COMPANIES, OR OTHERS PURSUANT TO LETTERS OF CREDIT
OR PURCHASE AGREEMENTS;

(III)  INVESTMENT EARNINGS FROM FUNDS OR
ACCOUNTS MAINTAINED PURSUANT TO A BOND RESOLUTION OR TRUST
AGREEMENT;

(IV)  INSURANCE PROCEEDS;

(V)  LOAN FUNDING DEPOSITS;

(VI)  PROCEEDS OF SALES OF EDUCATION LOANS;

(VII)  PROCEEDS OF REFUNDING BONDS; AND

(VIII)  OTHER FEES, CHARGES, OR REVENUES OF
THE AUTHORITY.