WILLIAM DONALD SCHAEFER, Governor                         S.B. 893

these notes at maturity, with or without resale. The issuance of bond anticipation notes
and the details thereof, the rights of the holders, and the rights, duties, and obligations of
the Service in respect thereto, are governed by the provisions of this title relating to
bonds, insofar as these provisions may be applicable. A grant anticipation note may be
issued or sold only after receipt of written commitment of the federal or State
government or agency making the grant; and

(3) Issue and sell its revenue bonds or notes in the nature of industrial
development bonds, whether the bonds or notes be pollution control revenue bonds, solid
waste disposal revenue bonds, or other types of industrial development revenue bonds,
for the purpose of borrowing money to lend to any person or municipality for the
accomplishment by such person or municipality of a project or projects. The principal of
and interest on the bonds or notes may be made payable out of:

(i) The revenues received by the Service from such person or
municipality or otherwise received in connection with such project;

(ii) Any property pledged or mortgaged as security for such bonds or
notes; or

(iii) Any other sources designated by the Service. The authorizing
resolution may make provision for the issuance of such bonds or notes in series as funds
are required. The issuance of bonds or notes and the details of the issuance, the rights of
the holders of the bonds or notes, and the rights, duties, and obligations of the Service of
the bonds and notes shall be governed by the provisions of this subtitle relating to bonds
insofar as those provisions are applicable. The Service may make or approve such
provisions in connection with the issuance of the bonds or notes authorized by this
subsection, including the security for such bonds or notes, the priority of the bonds or
notes with regard to such security (which priority may be senior, or subordinated to, or on
a parity with, other obligations) as the Service may deem necessary or appropriate to
effectuate the acquisition, construction, or provision of a project by any person or
municipality. However, the Service does not have power to take any action in connection
with the issuance of bonds or notes pursuant to this paragraph which would create any
obligation on the part of any municipality without the consent of the municipality to the
obligation.

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 or 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

- 3435 -