HARRY HUGHES, Governor                                      1055

(2)  IF A STATE UNIT IS UNABLE TO SELL BONDS TO PAY
THE BOND ANTICIPATION NOTES UNDER THIS PART III OF THIS SECTION
WHEN DUE BECAUSE OF AN INTEREST RATE LIMITATION IN THE ENABLING
ACT, THE STATE UNIT MAY:

(I)  ISSUE BONDS IN A TOTAL PRINCIPAL AMOUNT
SUFFICIENT TO PAY THE PRINCIPAL OF AND NOT MORE THAN 1 YEAR'S
INTEREST ON THE NOTES; AND

(II)  PROVIDE FOR PAYMENT OF INTEREST ON THE
BONDS AT A RATE THAT IS HIGHER THAN THE INTEREST RATE LIMITATION
IN THE ENABLING ACT.

(3)  THIS SECTION IS SUPPLEMENTAL AUTHORITY FOR A
STATE UNIT TO ISSUE BONDS FREE OF AN INTEREST RATE LIMITATION TO
PAY OUTSTANDING BOND ANTICIPATION NOTES UNDER THIS PART III OF
THIS SUBTITLE.

(B) CITATION OF AUTHORITY.

A RESOLUTION THAT AUTHORIZES THE ISSUANCE OF BONDS UNDER
SUBSECTION (A)(2) OF THIS SECTION SHALL REFER TO:

(1)  THE ENABLING ACT; AND

(2)  THIS SECTION.

REVISOR'S NOTE: This section is new language that repeats
the provisions of present Art. 31, § 12(h).

In subsection (a)(3) of this section, the present
parenthetical "so authorized to issue bonds" is
omitted as unnecessary in light of § 8-213(a) of this
subtitle.

Defined terms: "Bond" § 8-201

"Enabling act" § 8-201 "State unit" § 8-201

"Resolution" § 8-201

8-221. COMMERCIAL PAPER.

(A)  IN GENERAL.

A STATE UNIT MAY ISSUE BOND OR GRANT ANTICIPATION NOTES
UNDER THIS PART III OF THIS SUBTITLE AS NOTES IN THE NATURE OF
COMMERCIAL PAPER.

(B)  SECURITY.

A BOND OR GRANT ANTICIPATION NOTE ISSUED AS A NOTE IN THE
NATURE OF COMMERCIAL PAPER MAY BE SECURED BY:

(1) A TRUST INDENTURE WITH A TRUST COMPANY, OR A BANK
WITH POWERS OF A TRUST COMPANY, IN OR OUTSIDE THE STATE; AND