Ch. 196

1993 LAWS OF MARYLAND

3-117.

(a)     Bonds and notes authorized to be issued under the provisions of this subtitle
by resolution of the board [of directors] may be secured by a trust agreement by and
between the Service and a corporate trustee, which may be any trust company, or bank
having trust powers, within or without the State. The trust agreement, or the authorizing
resolution, may pledge or assign all or any part of the revenues of the Service or of any
project of other available funds of the Service or pledge, convey, or assign any one or
more facilities or properties. Any trust agreement or resolution authorizing the issuance
of bonds or notes may contain the provisions for the protection and enforcement of the
rights and remedies of the bondholders deemed reasonable and proper, including
covenants setting forth the duties of the Service in relation to the acquisition or
construction of any project, the extension, enlargement, improvement, maintenance,
operation, repair, and insurance of any project and the custody, safeguarding, and
application of money and may contain provisions for the employment of consulting
engineers in connection with the construction or operation of any project. It is lawful for
any bank or trust company incorporated under the laws of the State which may act as a
depositary of the proceeds of the bonds or notes or of revenues to furnish indemnifying
bonds or to pledge securities as may be required by the board [of directors]. The 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, the trust
agreement may contain other provisions which the board [of directors] deems
reasonable and proper for the security of the bondholders, including, without limitation,
covenants to abandon, restrict, or prohibit the construction or operation of competing
facilities and covenants pertaining to the issuance of additional parity bonds or notes
upon conditions stated therein consistent with the requirements of this subtitle. All
expenses incurred in carrying out the provisions of any trust agreement may be treated as
a part of the cost of the operation of any project or projects in connection with which the
bonds or notes have been issued.

(b)     The proceeds of the sale of bonds or notes secured by a trust agreement shall
be paid to the trustee under the trust agreement securing the bonds or notes and shall be
disbursed in the manner and under the restrictions, if any, that may be provided in the
trust agreement.

3-118.

(a) The Service may fix, revise, charge, and collect rentals, rates, fees or other
charges for the use of or for the services furnished by any project or projects, contract
with any person or municipality desiring the use of the services or any part of any project
or projects, and fix the terms, conditions, rentals, rates, fees, and charges therefor. The
rentals and other rates, fees and charges designated as security for any bonds or notes
issued under this subtitle shall be fixed and adjusted in respect of the aggregate thereof
from the projects under the control of the Service as to provide funds sufficient with other
revenues, if any, (1) to pay the cost of maintaining, repairing, and operating any project or
projects financed in whole or in part by outstanding bonds or notes, to the extent the cost
is not otherwise provided, (2) to pay the principal of and the interest on the bonds or
notes as they become due and payable, (3) to create reserves for those purposes, and (4)
to provide funds for paying the cost of renewals or replacements, the cost of acquiring or

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