1056

LAWS OF MARYLAND

Ch. 11

(2) A LETTER OF CREDIT, LINE OF CREDIT, OR OTHER
CREDIT ARRANGEMENT FROM OR WITH A LENDING INSTITUTION.

(C) PAYMENT OF CREDIT ARRANGEMENT.

(1)  FOR BOND ANTICIPATION NOTES, THE CREDIT
ARRANGEMENT MAY BE MADE PAYABLE OUT OF:

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

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

(2)  FOR GRANT ANTICIPATION NOTES, THE CREDIT
ARRANGEMENT MAY BE MADE PAYABLE OUT OF THE PROCEEDS OF THE GRANT.

REVISOR'S NOTE: This section is new language that repeats
the provisions of the seventh and eighth sentences of
present Art. 31, § 12(a) and the sixth and seventh
sentences of (i).

In subsection (b)(1) of this section, the present
phrase "with a corporate trustee or trustees" is
omitted as surplusage.

The Commission to Revise the Annotated Code notes, for
consideration by the General Assembly, that the
reference, in subsection (a) of this section, to a
"bank" is unclear. The General Assembly may wish to
consider FI § 1-101(d), which defines a "banking
institution" as "an institution that is incorporated
under the laws of this State as a State bank, trust
company, or savings bank."

Defined terms: "Bond" § 8-201
"State unit" § 8-201

GENERAL REVISOR'S NOTE:

Most of the sections in this subtitle repeat the substance
of provisions of present Art. 31 that, before enactment of this
subtitle, applied to political subdivisions and their units and
instrumentalities, as well as to units and instrumentalities of
the State. In light of this subtitle, provisions of Art. 31 have
been amended to delete the references to the State and its units
and instrumentalities. Those provisions of present Art. 31
ultimately will be revised in a local government article.

The substance of present Art. 31, § 12(d), which provides
that bond anticipation notes "shall pass as negotiable
instruments" as provided in Art. 31, § 8, is not repeated in this
subtitle in light of § 8-302 of this title.

SUBTITLE 3. MISCELLANEOUS PROVISIONS.