WILLIAM DONALD SCHAEFER, Governor Ch. 246

FUNDS TO BE HELD AND APPLIED AS PROVIDED BY THE PROVISIONS OF
THIS TITLE.

19-107.

(A) THE EXERCISE OF THE POWERS GRANTED BY THE PROVISIONS OF
THIS TITLE SHALL BE FOR THE BENEFIT OF THE PEOPLE OF THE STATE,
FOR THE INCREASE OF THEIR EDUCATION AND PROSPERITY, AND FOR THE
IMPROVEMENT OF THEIR HEALTH, LIVING CONDITIONS, AND GENERAL
WELFARE.

(B) THE OPERATION AND MAINTENANCE OF AUXILIARY FACILITIES
AND ACCOMMODATIONS BY A SYSTEM CONSTITUTES THE PERFORMANCE OF
ESSENTIAL GOVERNMENTAL FUNCTIONS.

(C) THE SYSTEM MAY NOT BE REQUIRED TO PAY ANY TAXES OR
ASSESSMENTS UPON ANY BUILDING OR BUILDINGS OR ANY PROPERTY, REAL,
PERSONAL, OR MIXED, ACQUIRED OR USED UNDER THE PROVISIONS OF THIS
TITLE OR UPON THE INCOME THEREFROM.

(D) BONDS ISSUED UNDER THE PROVISIONS OF THIS TITLE, THEIR
TRANSFER AND INCOME, INCLUDING ANY PROFIT MADE ON THEIR SALE, ARE
FREE FROM TAXATION BY THE STATE OR BY ANY OF ITS POLITICAL
SUBDIVISIONS, OR BY ANY TOWN OR INCORPORATED MUNICIPALITY OR ANY
OTHER PUBLIC AGENCY WITHIN THE STATE.

19-108.

(A) A SYSTEM MAY PROVIDE BY RESOLUTION FOR THE ISSUANCE OF
BONDS FOR THE PURPOSE OF REFUNDING ANY BONDS OR REFUNDING BONDS
THEN OUTSTANDING INCLUDING THE PAYMENT OF ANY REDEMPTION PREMIUM
AND ANY INTEREST ACCRUED OR TO ACCRUE TO THE DATE OF REDEMPTION
OF THE BONDS.

SYSTEM.

(B) THE PROVISIONS OF THIS TITLE GOVERN:

(1) THE ISSUANCE OF THE REFUNDING BONDS;

(2) THEIR MATURITIES AND OTHER DETAILS;

(3) THE RIGHTS AND REMEDIES OF THE BONDHOLDER;

(4) THE SECURITY FOR THE REFUNDING BONDS; AND

(5) THE RIGHTS, DUTIES, AND OBLIGATIONS OF THE

19-109.

(A) BONDS ISSUED UNDER THE PROVISIONS OF THIS TITLE ARE
SECURITIES IN WHICH ALL OF THE FOLLOWING MAY LEGALLY AND
PROPERLY INVEST FUNDS, INCLUDING CAPITAL IN THEIR CONTROL OR
BELONGING TO THEM:

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