Ch. 311

LAWS OF MARYLAND

(b) The proceeds of the sale of bonds shall be paid to the
trustee under any trust agreement or determination securing the
bonds and shall be disbursed in the manner and under the
restrictions, if any, that are provided in the trust agreement or
determination.

[13-413. ] 6-313.

(a) (1) The revenues, or any part thereof (whether derived
from the energy project or projects in connection with which the
bonds of any issue shall have been issued or from other energy
projects or sources), designated as security for the bonds by an
authorizing determination or in the trust agreement securing the
bonds shall be set aside at regular intervals, as provided in the
determination or trust agreement, in a special fund or funds
which are hereby pledged to, and charged with, the payment of:

(i) The interest on the bonds as the interest
falls due;

(ii) The principal of the bonds as it falls
due;

(iii) The necessary charges of paying agents
for paying principal and interest; and

(iv) The redemption price or purchase price of
bonds retired by call or purchase as provided in the
determination or trust agreement.

(2)  Any amounts set aside in a special fund that are.
not needed to provide for the payment of items (i), (ii), (iii),
and (iv) under paragraph (1) of this subsection may be used for
any other lawful purpose, to the extent provided in the
determination or trust agreement. The pledge shall be valid and
binding from the time when the pledge is made. The revenues or
other moneys so pledged and thereafter received by the
Administration shall immediately be subject to the lien of the
pledge without any physical delivery of the revenues or other
moneys or further act, and the lien of the pledge shall be valid
and binding as against any party having any claim of any kind in
tort, contract or otherwise against the Administration,
irrespective of whether the party has notice of the lien.

(3)  Neither the determination nor, any trust agreement
by which a pledge is created need be filed or recorded except in
the records of the Administration, any public general or public
local law to the contrary notwithstanding. The use and
disposition of moneys to the credit of the special fund shall be
subject to the provisions of the determination authorizing the
issuance of the bonds or of the trust agreement.

- 1648 -