Ch. 246                                          LAWS OF MARYLAND

THE ISSUANCE OF THE BONDS OR IN THE TRUST AGREEMENT SECURING
THEM, SHALL BE SET ASIDE AT REGULAR INTERVALS IN A SINKING FUND
WHICH IS HEREBY PLEDGED TO, AND CHARGED WITH, THE PAYMENT OF:

(1) THE INTEREST UPON THE BONDS WHEN DUE;

(2) THE PRINCIPAL OF THE BONDS WHEN DUE;

(3) THE NECESSARY CHARGES OF PAYING AGENTS FOR PAYING
PRINCIPAL AND INTEREST; AND

(4) THE REDEMPTION PRICE OR PURCHASE PRICE OF BONDS
RETIRED BY CALL OR PURCHASE AS PROVIDED IN THE RESOLUTION OR
TRUST AGREEMENT.

(C) THE PLEDGE IS VALID AND BINDING FROM THE TIME WHEN
MADE.

(D) AUXILIARY FACILITIES FEES AND OTHER REVENUES OR OTHER
MONEYS SO PLEDGED AND THEREAFTER RECEIVED BY THE SYSTEM ARE
IMMEDIATELY SUBJECT TO THE LIEN OF THE PLEDGE WITHOUT ANY
PHYSICAL DELIVERY OR FURTHER ACT, AND THE LIEN OF ANY PLEDGE OF
AUXILIARY FACILITIES FEES AND OTHER REVENUES OR OTHER MONEYS AND
THE RIGHTS TO RECEIVE THE SAME IS VALID AND BINDING AGAINST ALL
PARTIES HAVING ANY CLAIMS OF ANY KIND IN TORT, CONTRACT, OR
OTHERWISE AGAINST THE SYSTEM, IRRESPECTIVE OF WHETHER SUCH
PARTIES HAVE NOTICE THEREOF.

(E) NEITHER THE RESOLUTION NOR ANY TRUST AGREEMENT BY WHICH
A PLEDGE IS CREATED NEED BE FILED OR RECORDED EXCEPT IN THE
RECORDS OF THE SYSTEM.

(F) THE USE AND DISPOSITION OF MONEYS TO THE CREDIT OF THE
SINKING FUND OR OTHER FUNDS OR ACCOUNTS ESTABLISHED UNDER THE
RESOLUTION OR TRUST AGREEMENT ARE SUBJECT TO THE PROVISIONS OF
THE RESOLUTION AUTHORIZING THE ISSUANCE OF THE BONDS OR OF THE
TRUST AGREEMENT.

(G) NOTWITHSTANDING ANY PROVISION OF THIS SECTION, A SYSTEM
MAY, BY RESOLUTION PASSED PRIOR TO THE ISSUANCE OF BONDS UNDER
THE PROVISIONS OF THIS TITLE OR IN THE TRUST AGREEMENT SECURING
THE BONDS, COVENANT TO PAY ALL OR ANY PART OF THE COST OF
MAINTAINING, EQUIPPING, REPAIRING, AND OPERATING ANY AUXILIARY
FACILITIES. EACH COVENANT HAS THE FORCE OF CONTRACT BETWEEN THE
SYSTEM AND THE HOLDERS OF THE BONDS ISSUED ON ACCOUNT OF THE
PROJECT OR PROJECTS.

19-106.

ALL MONEYS RECEIVED BY A SYSTEM AS PROCEEDS FROM THE SALE OF
BONDS AUTHORIZED BY THIS TITLE AND ALL MONEYS RECEIVED BY THE
SYSTEM BY WAY OF AUXILIARY FACILITIES FEES WHICH ARE ASSIGNED OR
PLEDGED AS SECURITY FOR THE BONDS SHALL BE DEEMED TO BE TRUST

- 2528 -