WILLIAM DONALD SCHAEFER, Governor Ch. 255

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Transportation

3-104.

(A)  (1) IN THIS SECTION, THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(2)   "CREDIT INSTRUMENT" MEANS A LETTER OF CREDIT,
BOND INSURANCE POLICY, GUARANTY, LINE OF CREDIT, SURETY BOND, OR
SIMILAR AGREEMENT OR COMMITMENT SECURING AN ISSUE OF CONSOLIDATED
TRANSPORTATION BONDS OR COUNTY TRANSPORTATION BONDS.

(3)   "CREDIT INSTRUMENT PROVIDER" MEANS AN ISSUER OF A
CREDIT INSTRUMENT THE UNSECURED INDEBTEDNESS OF WHICH, OR
INDEBTEDNESS INSURED BY WHICH, IS RATED ON THE DATE OF ISSUANCE
OF THE CREDIT INSTRUMENT BY A NATIONALLY RECOGNIZED RATING AGENCY
IN 1 OF ITS 2 HIGHEST RATING CATEGORIES.

(4)   "MAXIMUM ANNUAL DEBT SERVICE" MEANS, AS OF ANY
PARTICULAR DATE OF COMPUTATION:

(I)  WITH RESPECT TO AN ISSUE OF CONSOLIDATED
TRANSPORTATION BONDS, THE GREATEST AMOUNT REQUIRED IN THE THEN
CURRENT OR ANY FUTURE CALENDAR YEAR TO PAY THE PRINCIPAL OF AND
INTEREST ON THE BONDS OF THAT ISSUE; AND

(II)  WITH RESPECT TO AN ISSUE OF COUNTY
TRANSPORTATION BONDS, THE GREATEST AMOUNT REQUIRED IN THE THEN
CURRENT OR ANY FUTURE FISCAL YEAR TO PAY THE PRINCIPAL OF AND
INTEREST ON THE BONDS OF THAT ISSUE.

(B)  WITH RESPECT TO AN ISSUE OF CONSOLIDATED TRANSPORTATION
BONDS SOLD AFTER JUNE 1, 1989, THE SECRETARY MAY PROVIDE IN THE
RESOLUTION AUTHORIZING THE ISSUANCE OF THE BONDS THAT THERE SHALL
BE DEPOSITED IN THE SINKING FUND MAINTAINED UNDER § 3-215(C) OF
THIS ARTICLE ONLY THE AMOUNTS OF THE PROCEEDS OF THE TAXES LEVIED
AND IMPOSED UNDER § 3-215 OF THIS ARTICLE THAT MAY BE REQUIRED
FROM TIME TO TIME TO PAY THE PRINCIPAL OF AND INTEREST ON THE
BONDS, AS AND WHEN DUE, AND THAT HOLDERS OF BONDS OF THAT ISSUE
SHALL HAVE NO RIGHT TO RECEIVE PAYMENT FROM ANY OTHER AMOUNTS
DEPOSITED OR MAINTAINED IN THE SINKING FUND. THE SECRETARY MAY,
AT HIS DISCRETION, DETERMINE THAT:

(1) THERE SHALL BE DEPOSITED WITH OR HELD FOR THE
PAYING AGENT FOR THE BONDS A CREDIT INSTRUMENT UNDER WHICH THE
CREDIT INSTRUMENT PROVIDER IS OBLIGATED TO PAY AN AMOUNT AT LEAST
EQUAL TO THE MAXIMUM ANNUAL DEBT SERVICE ON THE BONDS OF THAT
ISSUE; OR

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