1058

PURPOSE;

LAWS OF MARYLAND                    Ch. 11

(II) A SPECIAL FUND ESTABLISHED FOR THAT

(3)  ANY LAW LIMITS PAYMENT OF PRINCIPAL AND INTEREST
TO A CERTAIN AMOUNT OR RATE OF TAX THAT MAY BE IMPOSED; OR

(4)  PRINCIPAL OR INTEREST ARE REGISTRABLE.

(C) ATTRIBUTES OF BOND.

A BOND THAT IS CONSIDERED TO BE AN INVESTMENT SECURITY UNDER
SUBSECTION (B) OF THIS SECTION HAS ALL THE ATTRIBUTES OF AN
INVESTMENT SECURITY THAT ARE POSSESSED BY A BOND THAT IS:

ISSUER;

(1) ISSUED ON THE FULL FAITH AND CREDIT OF THE

(2) PAYABLE TO BEARER; AND

(3) SECURED AS TO THE PAYMENT OF PRINCIPAL
INTEREST BY THE UNLIMITED TAXING POWER OF THE ISSUER.

AND

REVISOR'S NOTE: Subsection (a)(1) of this section is new
language added to allow concise reference to the bonds
to which this section applies.

Subsections (a)(2) through (c) of this section are new
language that repeats the provisions of present Art.
31, § 8.

In subsections (b) and (c) of this section, the
present statutory statement that the bonds shall pass
as "negotiable instruments" is changed to provide that
they shall be considered to be "investment
securities". Under the Uniform Negotiable Instruments
Law, it was correct to provide that bonds were
"negotiable instruments". Nevertheless, with the
adoption of the Uniform Commercial Code, it is no
longer appropriate to refer to these bonds as
negotiable instruments under Maryland law (see CL §§
3-103(1) and 3-104(1)(b)). Instead, under Title 8 of
the U.C.C., the appropriate term is "investment
securities" (see CL § 8-102(1)).

In subsection (b)(1) of this section, the phrase "from
the resolution or authority" is added for clarity.

In subsection (b)(2) of this section, the present
reference to "collection of special assessments,
tolls, rents, special taxes" is omitted as unnecessary
in light of the reference to "limited sources of

revenue

TITLE 9.

STATE INSURANCE PROGRAM.