Ch. 705

LAWS OF MARYLAND

any bank having trust powers, or with a trust company, located
within or outside the State of Maryland and designated as trustee
under such trust agreement. Any such trust agreement may provide
for the deposit with the trustee of the proceeds of sale of the
obligations secured thereby and the application of the proceeds
to payment of the cost of the facility or facilities financed by
such obligations. The Commission may enter into appropriate
covenants in the trust agreement concerning the fixing of fees,
charges and rentals for the use and enjoyment of any facility,
the payment of gross or net revenues from such facility and other
funds pledged as authorized by this subsection to the trustee,
the application of such payments by the trustee to the payment of
the principal of and interest on the obligations secured by the
trust agreement, and the establishment and maintenance of
reserves or a sinking fund therefor. Any such trust agreement
may contain a pledge of, and constitute a lien on, the revenues
and funds pledged by the Commission for the payment of
obligations issued under this subsection, including, without
limitations, a pledge of and a lien on the proceeds of sale of
any such obligations, any investments of such proceeds, and any
income or gain resulting from any investment of such proceeds,
and may create a security interest for the benefit of the holders
of such obligations in the facility or facilities the cost of
which is being financed with the proceeds of such obligations,
but not in any other facility the revenues from which are pledged
by the Commission to the payment of debt service on such
obligations. Any such trust agreement may contain appropriate
provisions for the protection of the holders of such obligations
in the event of a default by the Commission in the performance of
any of its covenants thereunder, including the right of the
trustee to sell any of the facilities at public or private sale
and the application of the proceeds of sale to the liquidation of
the obligations secured thereby.

(6)  The principal of and interest on any bonds issued
under this subsection shall be exempt from taxation in the State
of Maryland as provided in § 6-103 of this article.

(7)  These provisions may not be construed to prevent
the Commission from voluntarily applying to the payment of the
principal of and interest on any bonds issued under this
subsection, either upon maturity or redemption, its general funds
not otherwise committed. This authority shall be deemed to
include the power to retire an entire issue of such bonds from
the proceeds of general obligation refunding bonds issued by the
Commission pursuant to the authority of § 6-104 of this article.
Upon the retirement of an issue of bonds from the revenues of
this facility or facilities financed thereby, from other funds of
the Commission, or by refunding as herein authorized, the
Commission may elect to continue to charge for the use or
enjoyment of any such facility, and may apply the revenues so
derived to any other function, purpose or objective of the
Commission.

- 4716 -