§ 9-1-106. ISSUANCE OF BONDS, CERTIFICATES AND OTHER EVIDENCE OF INDEBTEDNESS—GENERALLY.
(a)
The authority may at one (1) time or from time to time provide by resolution for the issuance of negotiable revenue bonds, mortgages, certificates, or other evidence of indebtedness for the purpose of paying all or any part of the cost or purchase price of any one (1) or more of the projects provided for in this article. The resolution authorizing the issuance of revenue bonds, certificates, or other evidence of indebtedness under the provisions of this article or the trust indenture hereinafter provided for shall state the estimated cost or purchase price of any project or projects involved; and the revenue bonds, certificates, or other evidence of indebtedness shall be issued in such amount or amounts.
(b)
(1)
The principal and interest of revenue bonds, mortgages, certificates, or other evidence of indebtedness shall be payable from revenues, rentals, receipts, and funds available from any source whatsoever received by the authority. No tax, excise or special assessment (other than permitted under the terms of this article) shall be levied for the payment of the principal and interest.
(2)
Fees, rents, tolls, charges, and revenues received from the use of the project or projects constructed from the proceeds of the bonds issued under the provisions of this article shall be used or appropriated for the payment of interest or principal of the bonds. Prior to and during construction and for one (1) year after the completion of the construction of any project or projects for which revenue bonds have been issued, the interest on the bonds may be paid out of the proceeds realized from the sale of the bonds; and revenues, rentals, receipts, and funds from other sources available to the authority may be used and appropriated for the payment of interest on and principal of the bonds.
(c)
The revenue bonds, mortgages, certificates, or other evidence of indebtedness of each issue shall be dated, shall bear interest at the rate or rates as shall be determined by the authority, and shall mature at such time or times, not exceeding thirty (30) years from their date or dates, as may be determined by the authority. The bonds of each issue may be made redeemable before maturity at the option of the authority at such price or prices and under terms and conditions as may be fixed by the authority prior to the issuance of the bonds. The authority shall determine the form of the bonds, including any interest coupons to be attached, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the state. The payment of principal and interest of the bonds may be made in any lawful medium. The authority shall determine the manner of executing the bonds, which may be by facsimile signature of its chairman, and the manner of executing the interest coupons attached, which also may be facsimile signature of its chairman; the official seal of the authority shall be affixed to the bonds, and they shall be attested by its secretary. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or the facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until delivery.
(d)
Negotiability. All revenue bonds, certificates, or other evidence of indebtedness issued under the provisions of this article shall have and are hereby declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments law of this state.
(e)
Form of issuance; registration. The revenue bonds hereby authorized may be issued in coupon or in registered form or both, as the authority may determine, and provision may be made for the registration of any coupon revenue bonds as to principal alone and also as to both principal and interest and for the reconversion into coupon revenue bonds of any revenue bonds registered as to both principal and interest.
(f)
Sale. The authority may sell such revenue bonds in such manner, either at public or private sale, and for such price, as it may determine to be for the best interests of the authority. None of the provisions of Ann. Code of Md. art. 31, §§ 9 to 11, inclusive, and any amendments thereto shall apply to the revenue bonds issued under the provisions of this article.
(g)
Disposition of proceeds. The proceeds of the revenue bonds of each issue shall be used solely for the payment of the cost of the project or projects for which such bonds have been issued and shall be distributed in such manner and under such restrictions, if any, as the authority may provide in the resolution authorizing the issuance of such bonds or in the trust agreement hereinafter mentioned securing the same. If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than such cost, additional bonds may in like manner be issued to provide the amount of such deficit, and, unless otherwise provided in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall exceed the cost of the project or projects for which the same shall have been issued, the surplus shall be deposited into the sinking fund hereinafter provided for the payment of principal of and interest on the revenue bonds.
(h)
Interim receipts of temporary bonds; replacement bonds. Prior to the preparation of definitive revenue bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, to be exchanged for definitive bonds when such bonds have been executed and are available for delivery. The authority may also provide, by resolution, for the replacement of any bonds which shall become mutilated, destroyed, or lost.
(i)
Issuance without referendum. The revenue bonds, certificates, or other evidence of indebtedness authorized to be issued under this article may be issued without an election referendum or any other proceedings or the happening of any other conditions or things than those proceedings, conditions, or things which are specified and required by this article.
(j)
Refunding bonds. The authority is hereby authorized to provide by resolution for the issuance of its revenue refunding bonds for the purpose of refunding any revenue bonds then outstanding and issued under the provisions of this article. The issuance of such revenue refunding bonds, the maturities and other details thereof, the rights of the holders thereof, and the duties of the authority in respect of the same shall be governed by the provisions of this article insofar as they may be applicable.
(k)
The authority is further authorized to provide by resolution for the issuance of a single issue of its bonds for the combined purposes of:
(1)
Paying the cost of any improvement, extension, enlargement, or reconstruction of any of its existing projects; and
(2)
Refunding its bonds which shall theretofore have been issued for the purpose of providing funds for the cost of projects which shall then be outstanding and which shall then have matured or be subject to redemption or can be acquired for retirement.
(Laws of Md. (1959) ch. 516; Laws of Md. (1968) ch. 425; Laws of Md. (1969) ch. 747; Laws of Md. (1970) ch. 607; Laws of Md. (1978) ch. 652) (1988 Code, § 30-6) (Bill No. 48-02, § 1, 7-1-2004)