HARRY HUGHES, Governor

1053

Defined Term: "Bond" § 8-201
8-218. PAYMENT OF PRINCIPAL AND INTEREST.

(A)  BOND ANTICIPATION NOTES.

(1)  THE PRINCIPAL OF AND INTEREST ON BOND
ANTICIPATION NOTES UNDER THIS PART III OF THIS SUBTITLE SHALL BE
PAYABLE FROM:

(I)  THE 1ST PROCEEDS OF SALE OF THE BONDS; OR

(II)  THE TAX OR OTHER REVENUE THAT THE STATE
UNIT HAS PLEDGED TO THE PAYMENT OF THE BONDS.

(2)  NOT MORE THAN 1 YEAR'S INTEREST ON THE NOTES, OR
ON ANY RENEWAL OF THE NOTES, ACCOUNTING FROM THE DATE OF THE
INITIAL ISSUE OF THE NOTES, MAY BE PAID FROM THE PROCEEDS OF SALE
OF THE NOTES.

(B)  GRANT ANTICIPATION NOTES.

(1)  SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS
SUBSECTION, THE PRINCIPAL OF AND INTEREST ON GRANT ANTICIPATION
NOTES UNDER THIS PART III OF THIS SUBTITLE SHALL BE PAYABLE FROM
THE PROCEEDS OF THE GRANT.

(2)  THE STATE UNIT MAY MAKE THE GRANT ANTICIPATION
NOTES PAYABLE ONLY FROM THE PROCEEDS OF THE GRANT AND NEED NOT
PLEDGE THE FAITH AND CREDIT OR TAXING POWER OF THE STATE UNIT.

(3)  IF THE STATE UNIT DOES NOT PLEDGE ITS FAITH AND
CREDIT OR TAXING POWER, THE GRANT ANTICIPATION NOTES ARE NOT A
DEBT OR A CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWER OF
THE STATE UNIT UNDER ANY CONSTITUTIONAL PROVISION OR STATUTORY
LIMITATION.

REVISOR'S NOTE: This section is new language that repeats
the provisions of the second sentence and the second
clause of the first sentence of present Art. 31, §
12(a) and the second and fifth sentences of (i).

In subsection (a)(1) of this section, the present
reference to payment "to the bearer or registered
holder thereof" is omitted as surplusage.

In subsection (a)(2) of this section, the phrase "not
more than" is added for clarity.

Also in subsection (a)(2) of this section, the. present
alternative of payment "from the proceeds of the sale
of bonds" is omitted to clarify that subsection (a)(2)
of this section states an exception that allows 1
year's interest to be paid from the proceeds of the
notes, notwithstanding the general rule, under