WILLIAM DONALD SCHAEFER, Governor                   Ch. 311

the rights of the holders of the bonds, and the rights, duties,
and obligations of the Administration in respect to the bonds
shall be governed by the provisions of this subtitle relating to
bonds authorized by § [13-408] 6-308 of this subtitle, insofar as
they may be applicable. However, the Administration may make or
approve provisions in connection with the issuance of the bonds
authorized by subsection (2) of this section including the
security for the bonds, the priority of the bonds with regard to
the security (which priority may be senior, or subordinated to,
or on a parity with, other obligations), as the Administration
may deem necessary or appropriate to effectuate the acquisition,
construction or provision of an energy project by any person.

[13-412.] 6-312.

(a) If the Administration elects, bonds may be secured by a
trust agreement by and between the Administration and a corporate
trustee, which may be any trust company or bank having trust
powers, in or outside the State. The trust agreement may pledge
or assign all or any part of the revenues of the Administration
or of any energy project, and may mortgage or grant a lien on or
security interest in any energy project or any part of it. Any
trust agreement or determination that authorizes the issuance of
bonds may contain provisions for the protection and enforcement
of the rights and remedies of the bondholders, as may be
considered reasonable and proper, including covenants that set
forth the duties of the Administration in relation to the
acquisition or construction of any energy project, the extension,
enlargement, improvement, maintenance, operation, repair and
insurance of any energy project and the custody, safeguarding and
application of moneys and may contain provision for the
employment of consulting engineers and other experts in
connection with the construction or operation of any energy
project. Any bank or trust company incorporated under the laws
of this State may act as depository of the proceeds of the bonds
or of revenues, may furnish indemnifying bonds or may pledge
securities, as may be required by the Administration. The trust
agreement or determination may set forth the rights and remedies
of the bondholders and of the trustee and may restrict the
individual right of action by bondholders. In addition, the
trust agreement or determination may contain any other provision
that the Administration considers reasonable and proper for the
security of the bondholders, including covenants to abandon,
restrict, or prohibit the construction or operation of competing
facilities and covenants pertaining to the issuance of additional
parity bonds on conditions stated in the trust agreement or
determination consistent with the requirements of this subtitle.
All expenses incurred in carrying out the provisions of any trust
agreement or determination may be treated as a part of the cost
of any energy project or projects in connection with which the
bonds shall have been issued.

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