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§ 4-311. Revenue bonds secured by trust agreements

West's Annotated Code of MarylandTransportation

West's Annotated Code of Maryland
Transportation
Title 4. Revenue Facilities (Refs & Annos)
Subtitle 3. Financing of Projects (Refs & Annos)
MD Code, Transportation, § 4-311
§ 4-311. Revenue bonds secured by trust agreements
Currentness
In general
(a)(1) Revenue bonds issued under this subtitle may be secured by a trust agreement between the Authority and a corporate trustee, which may be any trust company or bank having trust powers within or without this State.
(2) The trust agreement may pledge or assign all or any part of the revenues of the Authority or of any transportation facilities project, but may not mortgage any part of any transportation facilities project.
Contents of trust agreement or bond authorizing resolution
(b) Any trust agreement or bond authorizing resolution may:
(1) Contain any provisions for the protection and enforcement of the rights and remedies of bondholders as are considered reasonable and proper, including covenants setting forth the duties of the Authority as to the financing or development of any transportation facilities project, the extension, enlargement, improvement, maintenance, operation, repair, and insurance of the project, and the custody, safeguarding, and application of money;
(2) Provide for the employment of consulting engineers in connection with the construction or operation of any transportation facilities project;
(3) Set forth the rights and remedies of the bondholders and of the trustee;
(4) Restrict the individual right of action by bondholders; and
(5) Contain any other provisions that the Authority considers reasonable and proper for the security of the bondholders, including:
(i) Covenants to restrict or prohibit the construction or operation of competing transportation facilities of the same mode; and
(ii) Covenants relating to the issuance of additional parity bonds on stated conditions consistent with the requirements of this subtitle.
Expenses treated as part of the cost of operation
(c) All expenses incurred in carrying out the trust agreement may be treated as a part of the cost of the operation of the transportation facilities project in connection with which the bonds have been issued.
Disbursement of bond sale proceeds
(d) The proceeds of the sale of bonds shall be paid to the trustee under the trust agreement securing the bonds and shall be disbursed in the manner and under the restrictions, if any, provided in the trust agreement.
Depositary of bond proceeds or revenues
(e) Any bank or trust company incorporated under the laws of this State that acts as depositary of the proceeds of the bonds or of revenues may furnish any indemnifying bonds or pledge any securities that the Authority requires.

Credits

Added by Acts 1977, c. 13, § 2, eff. July 1, 1977.
Formerly Art. 94A, § 17.
MD Code, Transportation, § 4-311, MD TRANS § 4-311
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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