WILLIAM DONALD SCHAEFER, Governor                            Ch. 539

(B)      THE RESOLUTION AUTHORIZING THE ISSUANCE OF BOND ANTICIPATION
NOTES MAY PROVIDE FOR THE ISSUANCE OF THESE NOTES IN SERIES, AS FUNDS
ARE REQUIRED, AND FOR THE RENEWAL OF THESE NOTES AT MATURITY, WITH OR
WITHOUT RESALE.

(C)     THE ISSUANCE OF BOND ANTICIPATION NOTES, THE DETAILS OF THEIR
ISSUANCE, THE RIGHTS OF THEIR HOLDERS, AND THE RIGHTS, DUTIES AND
OBLIGATIONS OF THE DEPARTMENT WITH RESPECT TO THEM ARE GOVERNED BY
THE PROVISIONS OF THIS SUBTITLE RELATING TO THE ISSUANCE OF THE BONDS IN
ANTICIPATION OF THE SALE OF WHICH THE NOTES ARE ISSUED, INSOFAR AS THOSE
PROVISIONS MAY BE APPLICABLE.

3-509.

BONDS ISSUED UNDER THIS SUBTITLE, THEIR TRANSFER, THE INTEREST
PAYABLE ON THEM, AND ANY INCOME DERIVED FROM THEM, INCLUDING ANY
PROFIT REALIZED IN THEIR SALE OR EXCHANGE, SHALL BE EXEMPT AT ALL TIMES
FROM EVERY KIND AND NATURE OF TAXATION BY THIS STATE OR BY ANY OF ITS
POLITICAL SUBDIVISIONS, MUNICIPAL CORPORATIONS, OR PUBLIC AGENCIES OF
ANY KIND.

3-510.

(A) BONDS UNDER THIS SUBTITLE MAY BE AUTHORIZED BY TRUST
AGREEMENT BETWEEN THE DEPARTMENT AND A CORPORATE TRUSTEE, WHICH
MAY BE ANY TRUST COMPANY, OR BANK HAVING TRUST POWERS, WITHIN OR
WITHOUT THE STATE. ANY SUCH TRUST AGREEMENT SHALL DESCRIBE THE SOURCE
OR SOURCES OF REVENUE TO BE PLEDGED TO PAY DEBT SERVICE ON THE BONDS
AND MAY CONTAIN:

(1)      SUBJECT TO THEN EXISTING AGREEMENTS WITH BONDHOLDERS OR
NOTEHOLDERS, PROVISIONS PLEDGING OR ASSIGNING ALL OR ANY PART OF THE
REVENUES OF THE PARTICIPATING COUNTIES, MORTGAGES OR LOANS MADE BY
THE PARTICIPATING COUNTIES OR THE SECURITY THEREFOR, THE PROCEEDS OF
ANY BONDS ISSUED UNDER THIS SUBTITLE, OR ANY COMBINATION OF THESE AND
ANY OTHER ASSETS OF THE PARTICIPATING COUNTIES TO SECURE PAYMENT OF
BONDS;

(2)       PROVISIONS PROTECTING AND ENFORCING RIGHTS AND REMEDIES
OF BONDHOLDERS, INCLUDING RESTRICTIONS ON THE RIGHTS OF HOLDERS, AND
COVENANTS SETTING FORTH DUTIES OF OR RESTRICTIONS ON THE DEPARTMENT
AND THE PARTICIPATING COUNTIES;

(3)      PROVISIONS APPOINTING ONE OR MORE TRUST COMPANIES OR
BANKS WITH TRUST POWERS TO ACT AS DEPOSITARIES OF THE PROCEEDS OF ANY
BONDS OR NOTES. ANY DEPOSITARY BANK OR TRUST COMPANY INCORPORATED IN
THE STATE MAY FURNISH INDEMNIFYING BONDS OR PLEDGE SECURITIES, AS
REQUIRED BY THE DEPARTMENT;

(4)      PROVISIONS AS TO CUSTODY, SAFEGUARDING, APPLICATION, AND
INVESTMENT OF FUNDS CREDITED PURSUANT TO THIS SUBTITLE;

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