WILLIAM DONALD SCHAEFER, Governor

Ch. 396

(c)     (1) 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 WATER QUALITY FUND, IF THE NET SALE PROCEEDS WILL BE
DEPOSITED IN THE WATER QUALITY FUND, OR THE DRINKING WATER LOAN FUND,
IF THE NET SALE PROCEEDS WILL BE DEPOSITED IN THE DRINKING WATER LOAN
Fund which is pledged to, and charged with, the payment of:

(i) The interest upon such bonds as such interest falls due;

(ii) The principal of such bonds as it falls due;

(iii) The necessary charges of the trustee, bond registrar, and paying
agents; and

(iv) The redemption price or purchase price of bonds retired by call or
purchase as provided in the bond resolution or trust agreement.

(2) Any amounts set aside in such special account which are not needed to
provide for the payment of the items included under paragraph (1) of this subsection 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 WATER QUALITY Fund, OR THE DRINKING WATER LOAN FUND, irrespective of
whether such parties have notice thereof. Neither the bond resolution nor any trust
agreement by which a pledge is created need be filed or recorded except in the records of
the Administration, any public general or public local law to the contrary
notwithstanding.

(d)     Any net earnings of the Administration, beyond that necessary for the
retirement of bonds or to implement the public purposes or programs of the
Administration, shall not inure to the benefit of any person, other than the State of
Maryland for use to accomplish the purposes of this subtitle.

9-1614.

(a)     The bonds shall not be deemed to constitute a debt, liability, or a pledge of
the faith and credit of the State of Maryland or of any political subdivision thereof other
than the Administration, but such bonds shall be payable solely from the revenues and
funds herein provided therefor. However, this section does not limit the ability of a
borrower to set, impose, levy, or collect an assessment, rate, fee, tax or charge to pay to
the Administration any amounts required under a loan agreement or loan obligation of
the borrower.

(b)     Notwithstanding any other provision of public general or public local law,
charter, or ordinance regulating the creation of public debts or the making of contracts, a
local government may enter into a loan agreement with the Administration for the
purpose of financing all or a portion of the cost of a wastewater facility OR WATER

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