WILLIAM DONALD SCHAEFER, Governor                         Ch. 400

(iv) Proceeds of refunding bonds; and

(v) Any other source authorized by law.

(3) Bonds shall be authorized by a resolution of the Authority and may be
secured by a trust agreement by and between the Authority and a corporate trustee or
trustees, which may be any trust company or bank having the powers of a trust company
within or without the State. Bonds shall:

(i) Be issued at, above, or below par value, for cash or other valuable
consideration, and mature at a time or times, whether as serial bonds or as term bonds or
both, not exceeding 40 years from their respective dates of issue;

(ii) Bear interest at the fixed or variable rate or rates determined by
the method provided in the resolution or trust agreement;

(iii) Be payable at a time or times, in the denominations and form,
either coupon or registered or both, and carry the registration and privileges as to
conversion and for the replacement of mutilated, lost, or destroyed bonds as the
resolution or trust agreement may provide;

(iv) Be deemed a "security" within the meaning of § 8-102 of the
Commercial Law Article of the Code, whether or not it is either one of a class or series or
by its terms is divisible into a class or series of instruments and negotiable for all purposes
although payable from a limited source, notwithstanding any other law;

(v) Be payable in lawful money of the United States at a designated
place;

(vi) Be subject to the terms of purchase, payment, redemption,
refunding, or refinancing that the resolution or trust agreement provides;

(vii) Be executed by the manual or facsimile signatures of the officers of
the Authority designated by the Authority which signatures shall be valid at delivery even
for one who has ceased to hold office; and

(viii) Be sold in the manner and upon the terms determined by the
Authority including private (negotiated) sale and be exempt from the provisions of §§
8-206 and 8-208 of the State Finance and Procurement Article.

(b) Any resolution or trust agreement may contain provisions which shall be a
part of the contract with the holders of the bonds as to:

(1)     Pledging, assigning, or directing the use, investment, or disposition of
receipts of the Authority or proceeds or benefits of any contract and conveying or
otherwise securing any property or property rights;

(2)     The setting aside of loan funding deposits, debt service reserves,
capitalized interest accounts, cost of issuance accounts and sinking funds, and the
regulation, investment, and disposition thereof;

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