HARRY HUGHES, Governor

3093

THROUGH A DEBT RESTRUCTURING, FOR ALLEVIATING IMPENDING OR
ACTUAL DEFAULT AND MAY BE ISSUED IN ONE OR MORE SERIES IN AN
AMOUNT IN EXCESS OF THAT OF THE BONDS TO BE REFUNDED.

(2) THE PROCEEDS OF ANY BONDS ISSUED FOR THE
PURPOSE OF REFUNDING OUTSTANDING BONDS MAY BE APPLIED TO THE
PURCHASE OR RETIREMENT AT MATURITY OR REDEMPTION OF
OUTSTANDING BONDS EITHER ON THEIR EARLIEST OR ANY SUBSEQUENT
REDEMPTION DATE OR UPON THE PURCHASE OR AT THE MATURITY
THEREOF AND MAY, PENDING APPLICATION, BE PLACED IN ESCROW TO
BE APPLIED TO THE PURCHASE OR RETIREMENT AT MATURITY OR
REDEMPTION ON A DATE DETERMINED BY THE AUTHORITY.

(B)  (1) ANY ESCROWED PROCEEDS, PENDING USE, MAY BE
INVESTED AND REINVESTED IN DIRECT OBLIGATIONS OF THE UNITED
STATES OF AMERICA, MATURING AT A TIME OR TIMES APPROPRIATE
TO ASSURE THE PROMPT PAYMENT OF THE PRINCIPAL OF AND
INTEREST AND REDEMPTION PREMIUM, IF ANY, ON THE OUTSTANDING
BONDS TO BE REFUNDED.

(2)  THE INTEREST, INCOME AND PROFITS, IF ANY,
EARNED OR REALIZED ON ANY INVESTMENT MAY ALSO BE APPLIED TO
THE PAYMENT OF THE OUTSTANDING BONDS TO BE REFUNDED.

(3)  AFTER THE TERMS OF THE ESCROW HAVE BEEN
FULLY SATISFIED AND CARRIED OUT, ANY BALANCE OF PROCEEDS AND
INTEREST, INCOME AND PROFITS, IF ANY, EARNED OR REALIZED ON
THE INVESTMENTS SHALL BE RETURNED TO THE INSTITUTION FOR USE
BY IT IN ANY LAWFUL MANNER.

(C)  REFUNDING BONDS SHALL BE SUBJECT TO THIS SUBTITLE
IN THE SAME MANNER AND TO THE SAME EXTENT AS OTHER BONDS
ISSUED UNDER THIS SUBTITLE.

18-1314. INVESTMENTS.

(A) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBTITLE, THE
AUTHORITY MAY INVEST FUNDS IN:

(1)  DIRECT OBLIGATIONS OF THE UNITED STATES;

(2)  OBLIGATIONS AS TO WHICH THE TIMELY PAYMENT
OF PRINCIPAL AND INTEREST IS FULLY GUARANTEED BY THE UNITED
STATES;

(3)  OBLIGATIONS OF THE FEDERAL INTERMEDIATE
CREDIT BANKS, FEDERAL BANKS FOR COOPERATIVES, FEDERAL LAND
BANKS, FEDERAL HOME LOAN BANKS, FEDERAL NATIONAL MORTGAGE
ASSOCIATION, AND THE GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION;

(4)  CERTIFICATES OF DEPOSIT OR TIME DEPOSITS
CONSTITUTING DIRECT OBLIGATIONS OF ANY BANK AS DEFINED BY
THE LAWS OF THIS STATE. HOWEVER, INVESTMENTS MAY BE MADE
ONLY IN THOSE CERTIFICATES OF DEPOSIT OR TIME DEPOSITS IN