3092

LAWS OF MARYLAND

Ch. 488

(IV) TO ESTABLISH AND MAINTAIN WHATEVER
EDUCATION LOAN SERVICING, CONTROL, OR AUDIT PROCEDURES ARE
APPROPRIATE TO THE PRUDENT OPERATIONS OF THE AUTHORITY.

(B)  (1) A PLEDGE BY THE AUTHORITY OF REVENUES AS
SECURITY FOR AN ISSUE OF BONDS SHALL BE VALID AND BINDING
FROM THE TIME WHEN THE PLEDGE IS MADE.

(2)  THE REVENUES PLEDGED SHALL IMMEDIATELY BE
SUBJECT TO THE LIEN OF THE PLEDGE WITHOUT ANY PHYSICAL
DELIVERY OR FURTHER ACT, AND THE LIEN OF ANY PLEDGE SHALL BE
VALID AND BINDING AGAINST ANY PERSON HAVING ANY CLAIM OF ANY
KIND IN TORT, CONTRACT OR OTHERWISE AGAINST THE AUTHORITY OR
ANY PARTICIPATING INSTITUTION, IRRESPECTIVE OF WHETHER THE
PERSON HAS NOTICE.

(3)  NO BOND RESOLUTION, TRUST AGREEMENT OR
FINANCING STATEMENT, CONTINUATION STATEMENT, OR OTHER
INSTRUMENT ADOPTED OR ENTERED INTO BY THE AUTHORITY NEED BE
FILED OR RECORDED IN ANY PUBLIC RECORD OTHER THAN THE
RECORDS OF THE AUTHORITY IN ORDER TO PERFECT THE LIEN
AGAINST THIRD PERSONS, REGARDLESS OF ANY CONTRARY PROVISION
OF PUBLIC GENERAL OR PUBLIC LOCAL LAW.

(C)  (1) ALL MONEYS RECEIVED BY OR ON BEHALF OF THE
AUTHORITY UNDER THIS SUBTITLE, WHETHER AS PROCEEDS FROM THE
SALE OF BONDS OR AS REVENUES, SHALL BE DEEMED TO BE TRUST
FUNDS TO BE HELD AND APPLIED SOLELY AS PROVIDED IN THIS
SUBTITLE.

(2) ANY OFFICER WITH WHOM, OR ANY BANK OR TRUST
COMPANY WITH WHICH, SUCH MONEYS ARE DEPOSITED SHALL ACT AS
TRUSTEE OF THE MONEYS AND SHALL HOLD AND APPLY THEM FOR THE
PURPOSES PROVIDED IN THE SUBTITLE AND ANY APPLICABLE BOND
RESOLUTION OR TRUST AGREEMENT.

18-1312. ENFORCEMENT OF RIGHTS AND DUTIES.

EXCEPT TO THE EXTENT THAT THEIR RIGHTS ARE RESTRICTED
BY ANY APPLICABLE BOND RESOLUTION OR TRUST AGREEMENT, ANY
HOLDER OF BONDS ISSUED UNDER THIS SUBTITLE OR A TRUSTEE
UNDER A TRUST AGREEMENT ENTERED INTO UNDER THIS SUBTITLE,
MAY, BY ANY SUITABLE FORM OF LEGAL PROCEEDINGS, PROTECT AND
ENFORCE ANY RIGHTS GRANTED UNDER THE LAWS OF MARYLAND OR BY
ANY APPLICABLE BOND RESOLUTION OR TRUST AGREEMENT.

18-1313. REFUNDING BONDS.

(A) (1) THE AUTHORITY MAY ISSUE BONDS TO REFUND ANY
BONDS OF THE AUTHORITY THEN OUTSTANDING, INCLUDING THE
PAYMENT OF ANY REDEMPTION PREMIUM AND ANY INTEREST ACCRUED
OR TO ACCRUE TO THE EARLIEST OR ANY SUBSEQUENT DATE OF
REDEMPTION, PURCHASE OR MATURITY OF THE BONDS. REFUNDING
BONDS MAY BE ISSUED FOR THE PUBLIC PURPOSES OF REALIZING
SAVINGS IN THE EFFECTIVE COSTS OF DEBT SERVICE, DIRECTLY OR