1046

LAWS OF MARYLAND

Ch. 11

(1)  EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, A STATE UNIT SHALL ISSUE BONDS UNDER THIS SECTION IN
ACCORDANCE WITH THE PROCEDURES THAT APPLIED TO ISSUANCE OF THE
BONDS THAT ARE BEING REFUNDED.

(2)  IF, AT A PUBLIC MEETING, THE STATE UNIT
DETERMINES THAT IT WOULD BE IN THE PUBLIC INTEREST, THE STATE
UNIT MAY SELL BONDS ISSUED UNDER THIS SECTION AT A PRIVATE SALE,
WITHOUT SOLICITING BIDS.

(G) REDEMPTION OF OUTSTANDING BONDS.

BONDS THAT ARE BEING REFUNDED AND THAT ARE SUBJECT TO
REDEMPTION BEFORE THEIR STATED DATES OF MATURITY MAY BE CALLED
FOR REDEMPTION:

(1) ON THE EARLIEST REDEMPTION DATE; OR

(2). AT A LATER DATE THAT THE STATE UNIT DETERMINES.

(H) PROCEEDS.

(1)  A STATE UNIT SHALL INVEST AND APPLY PROCEEDS OF A
SALE OF BONDS ISSUED UNDER THIS SECTION TO ENSURE THAT THE
PRINCIPAL AND REDEMPTION PREMIUM OF, AND INTEREST ON, THE BONDS
THAT ARE BEING REFUNDED WILL BE PAID IN FULL WHEN DUE.

(2)  THE STATE UNIT MAY DEPOSIT ANY PART OF THE
PROCEEDS OF THE SALE OF BONDS ISSUED UNDER THIS SECTION IN A
TRUST FUND WITH A TRUST COMPANY OR OTHER BANKING INSTITUTION, IN
THE NAME OF THE STATE UNIT.

(3)  THE TRUSTEE MAY INVEST AND REINVEST MONEY IN THE
TRUST FUND IN:

(I)  OBLIGATIONS OF THE UNITED STATES;

(II)  OBLIGATIONS GUARANTEED BY THE UNITED
STATES;

(III)  CERTIFICATES OF DEPOSIT OR TIME DEPOSITS
SECURED BY AN OBLIGATION OF THE UNITED STATES; OR

(IV)  CERTIFICATES OF DEPOSIT OR TIME DEPOSITS
SECURED BY AN OBLIGATION GUARANTEED BY THE UNITED STATES.

(4)  INTEREST, INCOME, AND PROFITS ON THE INVESTMENT
MAY BE:

(I)  CONSIDERED TO BE REVENUE OF A REVENUE
PROJECT; AND

(II)  APPLIED IN ANY LAWFUL MANNER, INCLUDING TO
THE PAYMENT OF: