HARRY HUGHES, Governor                                      1847

(2) IS FOR THE BENEFIT OF THE BONDHOLDERS.

(D) SUFFICIENCY OF RATES, FEES, AND CHARGES TO PAY
OBLIGATIONS.

A CONTRACT UNDER THIS SECTION AND ANY LAW OF A POLITICAL
SUBDIVISION THAT IS ENACTED UNDER THE CONTRACT SHALL PROVIDE THAT
THE TOTAL OF ANY RATES, FEES, AND CHARGES IS SUFFICIENT TO PAY
ALL OF THE OBLIGATIONS THAT ARE ASSUMED BY THE OTHER PARTY TO THE
CONTRACT.

REVISOR'S NOTE: This section is new language derived
without substantive change from former HE §
9-906(b)(12), (13), and (14).

In subsection (a)(1) of this section, "federal agency"
is substituted for the former references to "federal
government" and "agency or instrumentality of the
federal government" in light of the definition of
"federal agency" in § 9-901 of this subtitle.

In subsection (a)(1) and (2) of this section, the
references to "any person" are substituted for the
former references to "private corporation",
"corporation", "copartnership", "partnership",
"association", and "individual" in light of the
definition of "person" in § 1-101 of this article.

In subsection (a)(2) and (3) of this section, the
former references to the power of an authority to
determine any term and condition of certain contracts
that the authority considers proper or approves are
deleted as unnecessary, in light of the discretionary
powers of the authority stated in the introductory
language to subsection (a) of this section.

In subsection (c)(1) of this section, the reference to
any law enacted by a political subdivision under a
contract under this section not being repealable if
any bond "to which the contract relates is
outstanding" is substituted for the former reference
to any bonds "issued under the authority of this
subtitle are outstanding and unpaid", to resolve the
ambiguity of having the repeal of every law of a
political subdivision concerning the contract being
dependent on every bond issued under this subtitle.
The Commission to Revise the Annotated Code believes
that the former law was erroneous, and that the intent
behind this provision should be stated clearly; i.e.,
that each law of a political subdivision concerning
the contract is only dependent on the bond that is
issued for a particular political subdivision under
the particular law. No change of substance is
intended by this substitution.