Ch. 306

2004 LAWS OF MARYLAND

(1)      ENHANCE THE MARKETABILITY OF AND SECURITY FOR THE BONDS;
OR

(2)      SECURE ANY TENDER OPTION GRANTED TO THE HOLDERS OF THE
BONDS.

(F)     IF ANY OFFICER WHOSE SIGNATURE APPEARS ON A BOND CEASES TO BE
AN OFFICER BEFORE DELIVERY OF THE BONDS, THE SIGNATURE IS VALID AND
SUFFICIENT FOR ALL PURPOSES.

(G)     THE BONDS, THEIR ISSUE, AND THEIR SALE MAY BE EXEMPT FROM THE
PROVISIONS OF SECTIONS 9, 10, AND 11 OF ARTICLE 31 OF THE CODE.

(H) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, THE
NET PROCEEDS OF THE SALE OF THE BONDS MAY ONLY BE APPLIED TO THE
CONSTRUCTION OR IMPROVEMENT OF PUBLIC SCHOOL FACILITIES, AS DESCRIBED
IN THE RESOLUTION AUTHORIZING THE ISSUANCE OF THE BONDS.

(2) IF THE NET PROCEEDS OF THE SALE OF ANY BONDS EXCEEDS THE
AMOUNT NEEDED FOR THE CONSTRUCTION OR IMPROVEMENT OF THE PUBLIC
SCHOOL FACILITIES, AS DESCRIBED IN THE RESOLUTION, THE EXCESS FUNDS SHALL
BE APPLIED TO:

(I)      THE PAYMENT OF INTEREST ON THE BONDS;

(II)     THE PAYMENT OF THE NEXT PRINCIPAL MATURITY OF THE
BONDS;

(III)   THE REDEMPTION OF ANY PART OF THE BONDS THAT ARE
REDEEMABLE BEFORE MATURITY; OR

(IV)    IF AUTHORIZED BY A RESOLUTION ISSUED BY THE GOVERNING
BODY OF THE COUNTY, THE CONSTRUCTION OR IMPROVEMENT OF OTHER PUBLIC
SCHOOL FACILITIES.

(I) BONDS ISSUED UNDER THIS SUBTITLE ARE NEGOTIABLE INSTRUMENTS
UNDER THE LAWS OF THIS STATE.

(J) BEFORE THE PREPARATION OF BONDS, THE COUNTY MAY ISSUE BOND
ANTICIPATION NOTES IN ACCORDANCE WITH ARTICLE 31, § 12 OF THE CODE.

5-603.

(A) BONDS ISSUED UNDER THIS SUBTITLE CONSTITUTE AN IRREVOCABLE
PLEDGE OF THE FULL FAITH AND CREDIT AND UNLIMITED TAXING POWER OF THE
COUNTY TO THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS
WHEN THE BONDS BECOME PAYABLE.

(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION, THE
GOVERNING BODY OF A COUNTY MAY IMPOSE A TRANSFER TAX ON AN INSTRUMENT
OF WRITING, AS DEFINED IN § 13-101(C) OF THE TAX PROPERTY ARTICLE:

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