Ch. 535

LAWS OF MARYLAND

ANY TRUST COMPANY OR BANK HAVING TRUST POWERS, WITHIN OR WITHOUT
THE STATE. SUCH TRUST AGREEMENT MAY PLEDGE OR ASSIGN ALL OR ANY
PART OF THE REVENUES OR CORPUS OF THE FUND OR ANY ACCOUNT
THEREIN, AND MAY PLEDGE OR ASSIGN OR GRANT A LIEN ON OR SECURITY
INTEREST IN ANY LOAN AGREEMENT OR LOAN OBLIGATION. ANY SUCH
TRUST AGREEMENT OR RESOLUTION AUTHORIZING THE ISSUANCE OF BONDS
MAY CONTAIN SUCH PROVISIONS FOR THE PROTECTION AND ENFORCEMENT OF
THE RIGHTS AND REMEDIES OF THE BONDHOLDERS AS MAY BE DEEMED
REASONABLE AND PROPER, INCLUDING COVENANTS SETTING FORTH THE
DUTIES OF THE ADMINISTRATION IN RELATION TO THE MAKING,
ADMINISTRATION AND ENFORCEMENT OF LOANS AND THE CUSTODY,
SAFEGUARDING AND APPLICATION OF MONEYS. SUCH TRUST AGREEMENT 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 TO THE FOREGOING, SUCH TRUST AGREEMENT
MAY CONTAIN SUCH OTHER PROVISIONS AS THE DIRECTOR MAY DEEM
REASONABLE AND PROPER FOR THE SECURITY OF THE BONDHOLDERS,
INCLUDING, WITHOUT LIMITATION, COVENANTS PERTAINING TO THE
ISSUANCE OF ADDITIONAL PARITY BONDS UPON CONDITIONS STATED
THEREIN CONSISTENT WITH THE REQUIREMENTS OF THIS SUBTITLE.

(B)  THE PROCEEDS OF THE SALE OF BONDS SHALL BE DISBURSED IN
SUCH MANNER AND UNDER SUCH RESTRICTIONS, IF ANY, AS MAY BE
PROVIDED IN SUCH TRUST AGREEMENT.

(C)  THE REVENUES AND MONEYS DESIGNATED AS SECURITY FOR
BONDS SHALL BE SET ASIDE AT SUCH REGULAR INTERVALS AS MAY BE
PROVIDED IN THE BOND RESOLUTION IN A SPECIAL ACCOUNT IN THE FUND
WHICH IS PLEDGED TO, AND CHARGED WITH, THE PAYMENT OF:

(1)  THE INTEREST UPON SUCH BONDS AS SUCH INTEREST
FALLS DUE;

(2)  THE PRINCIPAL OF SUCH BONDS AS IT FALLS DUE;

(3)  THE NECESSARY CHARGES OF THE TRUSTEE, BOND
REGISTRAR, AND PAYING AGENTS; AND

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

(5) ANY AMOUNTS SET ASIDE IN SUCH SPECIAL ACCOUNT WHICH ARE
NOT NEEDED TO PROVIDE FOR THE PAYMENT OF SUCH ITEMS (1), (2),
(3), AND (4) MAY BE USED FOR ANY OTHER LAWFUL PURPOSE, TO THE
EXTENT PROVIDED IN THE BOND RESOLUTION. SUCH PLEDGE SHALL BE
VALID AND BINDING FROM THE TIME WHEN THE PLEDGE IS MADE. SUCH
REVENUES OR OTHER MONEYS SO PLEDGED AND THEREAFTER RECEIVED BY
THE ADMINISTRATION SHALL IMMEDIATELY BE SUBJECT TO THE LIEN OF
SUCH PLEDGE WITHOUT ANY PHYSICAL DELIVERY THEREOF OR FURTHER ACT,
AND THE LIEN OF ANY SUCH PLEDGE SHALL BE VALID AND BINDING AS
AGAINST ALL PARTIES HAVING ANY CLAIMS OF ANY KIND IN TORT,
CONTRACT, OR OTHERWISE AGAINST THE ADMINISTRATION OR THE FUND,

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