Ch. 187

2004 LAWS OF MARYLAND

(2) EXCEPT WHERE THE PROVISIONS OF THIS SUBTITLE WOULD BE
INAPPLICABLE TO BOND ANTICIPATION NOTES, THE TERM "BONDS" AS USED IN THIS
SUBTITLE SHALL INCLUDE BOND ANTICIPATION NOTES, INCLUDING THE
PROVISIONS PERTAINING TO THE EXEMPTION FROM TAXATION BY THE STATE AND
ITS POLITICAL SUBDIVISIONS.

(Q) IN CONNECTION WITH THE ISSUANCE OF ANY BONDS, THE COUNTY

(1) OBTAIN OR ENTER INTO AGREEMENTS AND CONTRACTS FOR BOND
INSURANCE, RESERVE FUND INSURANCE, A LETTER OF CREDIT, A LINE OF CREDIT,
OR ANY FORM OF ADDITIONAL, SUBSTITUTE, OR REPLACEMENT SECURITY FOR ANY
BONDS; AND

(2) PLEDGE OR ASSIGN ALL OR ANY PART OF THE FUNDS OF THE
COUNTY BOARD TO THE REPAYMENT OR REIMBURSEMENT OF THE PROVIDER OF
THE BOND INSURANCE, RESERVE FUND INSURANCE, LETTER OF CREDIT, LINE OF
CREDIT, OR OTHER FORM OF ADDITIONAL, SUBSTITUTE, OR REPLACEMENT

(R) ANY OF THE AGREEMENTS AND CONTRACTS MAY CONTAIN THE
COVENANTS, TERMS, AND CONDITIONS AS MAY BE CONTAINED IN ANY TRUST
AGREEMENT FOR ANY BONDS.

(S) ANY BANK OR TRUST COMPANY INCORPORATED UNDER THE LAWS OF THE
STATE THAT ACTS AS A DEPOSITORY OF THE PROCEEDS OF THE BONDS MAY
FURNISH INDEMNIFYING BONDS OR PLEDGE SECURITIES AS REQUIRED BY THE
COUNTY BOARD.

(T) THE RESOLUTION PROVIDING FOR THE ISSUANCE OF BONDS IS A TRUST
AGREEMENT IF IT SO STIPULATES.

(U) ALL EXPENSES INCURRED IN CARRYING OUT THE PROVISIONS OF ANY
TRUST AGREEMENT OR ANY RESOLUTION MAY BE TREATED AS A PART OF THE COST
OF THE OPERATION OF THE COUNTY BOARD.

(V) UPON THE ISSUANCE OF BONDS, THE STATE COMPTROLLER SHALL
WITHHOLD FROM ANY INSTALLMENT DUE THE COUNTY BOARD FROM THE GENERAL
STATE SCHOOL FUND MONEYS FOR DEPOSIT TO THE CREDIT OF A SINKING FUND
MAINTAINED TO PAY THE PRINCIPAL AND INTEREST ON THE BONDS. SUCH MONEYS
SHALL BE WITHHELD UNTIL THE BONDS ARE NO LONGER OUTSTANDING AND
UNPAID AND SHALL BE WITHHELD IN INSTALLMENTS. THE AMOUNT OF EACH
INSTALLMENT SHALL BE DETERMINED AT THE TIME THE BONDS ARE ISSUED AND
SHALL BE PROVIDED IN WRITING BY THE COUNTY BOARD TO THE STATE
COMPTROLLER, PROVIDED THAT THE FREQUENCY AND AMOUNT OF SUCH
INSTALLMENTS SHALL ALLOW FOR THE TIMELY PAYMENT OF THE PRINCIPAL AND
INTEREST ON THE BONDS.

3-1009.3.

(A) THE EXERCISE OF THE POWERS GRANTED BY THE PROVISIONS OF THIS
SUBTITLE SHALL BE FOR THE BENEFIT OF THE STUDENTS WHO ATTEND THE PUBLIC

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BOARD MAY:

SECURITY.