2654

LAWS OF MARYLAND

Ch. 704

BE PLACED IN ESCROW TO BE APPLIED TO THE PURCHASE OR RETIREMENT
AT MATURITY OR REDEMPTION ON A DATE DETERMINED BY THE AUTHORITY.

(B)  (1) ANY ESCROWED PROCEEDS, PENDING USE, MAY BE INVESTED
AND REINVESTED IN DIRECT OBLIGATIONS OF THE UNITED STATES OF
AMERICA OR IN ANY OTHER OBLIGATIONS PERMITTED BY THE BOND
RESOLUTION PURSUANT TO WHICH THE REFUNDED BONDS WERE ISSUED,
MATURING AT A TIME OR TIMES APPROPRIATE TO ASSURE THE PROMPT
PAYMENT OF THE PRINCIPAL OF AND INTEREST AND REDEMPTION PREMIUM,
IF ANY, ON THE OUTSTANDING BONDS TO BE REFUNDED.

(2)  THE INTEREST, INCOME, AND PROFITS, IF ANY, EARNED
OR REALIZED ON ANY INVESTMENT MAY ALSO BE APPLIED TO THE PAYMENT
OF THE OUTSTANDING BONDS TO BE REFUNDED.

(3)  AFTER THE TERMS OF THE ESCROW HAVE BEEN FULLY
SATISFIED AND CARRIED OUT, ANY BALANCE OF PROCEEDS AND INTEREST,
INCOME, AND PROFITS, IF ANY, EARNED OR REALIZED ON THE
INVESTMENTS SHALL BE RETURNED TO THE AUTHORITY FOR DISPOSITION AS
PROVIDED IN THE BOND RESOLUTION PURSUANT TO WHICH THE REFUNDED
BONDS WERE ISSUED OR OTHERWISE IN ACCORDANCE WITH LAW.

(C)  REFUNDING BONDS SHALL BE SUBJECT TO THIS SUBTITLE IN
THE SAME MANNER AND TO THE SAME EXTENT AS OTHER BONDS ISSUED
UNDER THIS SUBTITLE.

31-113.

(A) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBTITLE OR, WITH
RESPECT TO THE PROCEEDS OF THE SALE OF BONDS OR OTHER MONEYS HELD
IN CONNECTION WITH AN ISSUE OF BONDS, THE BOND RESOLUTION
PURSUANT TO WHICH SUCH BONDS WERE ISSUED, THE AUTHORITY MAY
INVEST FUNDS IN:

(1)  DIRECT OBLIGATIONS OF THE UNITED STATES;

(2)  OBLIGATIONS AS TO WHICH THE TIMELY PAYMENT OF
PRINCIPAL AND INTEREST IS FULLY GUARANTEED BY THE UNITED STATES;

(3)  OBLIGATIONS OF THE FEDERAL INTERMEDIATE CREDIT
BANKS, FEDERAL BANKS FOR COOPERATIVES, FEDERAL LAND BANKS,
FEDERAL HOME LOAN BANKS, FEDERAL NATIONAL MORTGAGE ASSOCIATION,
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION;

(4)  CERTIFICATES OF DEPOSIT OR TIME DEPOSITS
CONSTITUTING DIRECT OBLIGATIONS OF ANY BANK AS DEFINED BY THE
LAWS OF THIS STATE, HOWEVER, INVESTMENTS MAY BE MADE ONLY IN
THOSE CERTIFICATES OF DEPOSIT OR TIME DEPOSITS IN BANKS WHICH ARE
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION IF THEN IN
EXISTENCE;

(5)  IN WITHDRAWABLE CAPITAL ACCOUNTS OR DEPOSITS OF
STATE OR FEDERAL CHARTERED SAVINGS AND LOAN ASSOCIATIONS WHICH
ARE INSURED BY THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION
OR THE MARYLAND DEPOSIT INSURANCE FUND CORPORATION; AND