HARRY HUGHES, Governor

1839

REVISOR'S NOTE: This section is new language derived
without substantive change from former HE § 9-917(a)
and (b).

In item (2)(ii) of this section, "retired" is
substituted for the former reference to "acquired for
retirement", for clarity.

9-938. SECURING BONDS BY RESOLUTION OR TRUST AGREEMENT.

(A)  ENTERING INTO A TRUST AGREEMENT.

TO SECURE ANY BOND ISSUED UNDER THIS SUBTITLE, AN AUTHORITY
MAY ENTER INTO A TRUST AGREEMENT WITH A CORPORATE TRUSTEE, WHICH
MAY BE:

(1)  A TRUST COMPANY; OR

(2)  A BANK THAT HAS THE POWERS OF A TRUST COMPANY.

(B)  PROVISIONS OF RESOLUTION OR TRUST AGREEMENT.

IN THE RESOLUTION OR TRUST AGREEMENT THAT AUTHORIZES THE
AUTHORITY TO ISSUE BONDS, THE AUTHORITY:

(1)  MAY PLEDGE OR ASSIGN THE REVENUES TO BE RECEIVED
FROM THE OPERATION OF ANY PROJECT FOR WHICH THE BONDS ARE ISSUED;

(2)  IN THE CASE OF BONDS THAT FINANCE A SEWERAGE
SYSTEM, AND TO THE EXTENT ALLOWED UNDER § 9-946 OF THIS SUBTITLE,
MAY PLEDGE OR ASSIGN AS SECURITY FOR THE BONDS THE REVENUES TO BE
RECEIVED FROM THE WATER SYSTEM OF THE AUTHORITY;

(3)  MAY NOT CONVEY OR MORTGAGE ANY PART OF A PROJECT;

(4)  MAY INCLUDE REASONABLE, PROPER, AND LAWFUL
PROVISIONS FOR PROTECTING AND ENFORCING THE RIGHTS AND REMEDIES
OF BONDHOLDERS, INCLUDING:

(I)  COVENANTS STATING THE DUTIES OF THE
AUTHORITY TO ACQUIRE, CONSTRUCT, IMPROVE, MAINTAIN, OPERATE,
REPAIR, AND INSURE ANY PROJECT FOR WHICH THE BONDS ARE ISSUED;

(II)  PROVISIONS FOR THE CUSTODY, PROTECTION,
AND USE OF THE FUNDS OF THE AUTHORITY; AND

(III)  PROVISIONS FOR THE EMPLOYMENT OF
CONSULTING ENGINEERS IN CONNECTION WITH THE CONSTRUCTION OR
MAINTENANCE OF ANY PROJECT FOR WHICH THE BONDS ARE ISSUED;

(5)  MAY STATE THE RIGHTS AND REMEDIES OF BONDHOLDERS
AND, IN THE CASE OF A TRUST AGREEMENT, OF TRUSTEES;