(a) A State unit may issue bond or grant anticipation notes under this Part III of this subtitle as notes in the nature of commercial paper. (b) A bond or grant anticipation note issued as a note in the nature of commercial paper may be secured by: (1) a trust indenture with a trust company, or a bank with powers of a trust company, in or outside the State; and (2) a letter of credit, line of credit, or other credit arrangement from or with a lending institution. (c) (1) For bond anticipation notes, the credit arrangement may be made payable out of: (i) the 1st proceeds of sale of the bonds; or (ii) the tax or other revenue that the State unit has pledged to payment of the principal of and interest on the bonds. (2) For grant anticipation notes, the credit arrangement may be made payable out of the proceeds of the grant.
‹ Prev All Maryland sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.