1834

LAWS OF MARYLAND

Ch. 173

REVISOR'S NOTE: This section is new    language derived

without substantive change from the     first clause of

the eighth sentence of former HE §   9-908(a) and from
the fourth sentence of (d).

The reference to "bonds" is deleted from subsection
(b) of this section in light of its inclusion in the
broad, general provisions of subsection (a) of this
section.

9-930. BONDS NOT PLEDGE OF FAITH AND CREDIT OF STATE OR
POLITICAL SUBDIVISION.

(A)  IN GENERAL.

A BOND ISSUED UNDER THIS SUBTITLE:

(1)  IS NOT A PLEDGE OF THE FAITH AND CREDIT OF THIS
STATE OR ANY OF ITS POLITICAL SUBDIVISIONS; AND

(2)  SHALL SAY ON ITS FACE THAT NEITHER THE FAITH AND
CREDIT OF THIS STATE NOR THE FAITH AND CREDIT OF ANY OF ITS
POLITICAL SUBDIVISIONS IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL
OF OR INTEREST ON THE BOND.

(B)  BONDS NOT OBLIGATION TO TAX OR MAKE APPROPRIATIONS.

THE ISSUANCE OF A BOND UNDER THIS SUBTITLE DOES NOT OBLIGATE
THIS STATE OR ANY OF ITS POLITICAL SUBDIVISIONS DIRECTLY,
INDIRECTLY, OR CONTINGENTLY:

(1)  TO LEVY ANY TAX; OR

(2)  TO MAKE ANY APPROPRIATION FOR PAYMENT OF THE
BONDS, EXCEPT FROM FUNDS PLEDGED IN ACCORDANCE WITH THIS
SUBTITLE.

REVISOR'S NOTE: This section is new language derived
without substantive change from former HE § 9-909.

9-931. BONDS CONSTITUTE LEGAL INVESTMENT BONDS.

A BOND ISSUED UNDER THIS SUBTITLE IS A SECURITY:

(1) IN WHICH ANY PERSON WHO CONDUCTS A BANKING
BUSINESS, INVESTMENT BUSINESS, OR INSURANCE BUSINESS, ANY
FIDUCIARY, ANY OTHER PERSON, OR ANY PUBLIC OFFICER OR AGENCY OF
THIS STATE OR OF ANY POLITICAL SUBDIVISION MAY INVEST FUNDS,
INCLUDING CAPITAL THAT:

(I)  IS IN THE CONTROL OF THE PERSON, OFFICER,
OR AGENCY; OR

(II)  BELONGS TO THE PERSON, OFFICER, OR AGENCY;
AND