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§ 12-704. Powers of authority regarding bonds and lease obligations

West's Annotated Code of MarylandHousing and Community DevelopmentEffective: March 22, 2007

West's Annotated Code of Maryland
Housing and Community Development (Refs & Annos)
Division II. Housing Authorities [Titles 12-End] (Refs & Annos)
Title 12. Provisions of Statewide Applicability (Refs & Annos)
Subtitle 7. Bonds (Refs & Annos)
Effective: March 22, 2007
MD Code, Housing & Community Development, § 12-704
§ 12-704. Powers of authority regarding bonds and lease obligations
Currentness
Powers--Bonds and lease obligations
(a) In connection with issuing bonds or incurring obligations under leases, and to secure payment of the bonds or obligations, an authority, in addition to its other powers, may:
(1) pledge any or all of the gross or net rents, fees, or revenues that are or will become due to it;
(2) mortgage any or all of the real or personal property that it owns or will own;
(3) covenant against:
(i) pledging any or all of its rents, fees, or other revenue;
(ii) mortgaging any or all of the real or personal property that it owns or will own; or
(iii) suffering any lien on anything listed under item (i) or (ii) of this item;
(4) covenant about limits on its right to sell, lease, or dispose of all or part of a housing project;
(5) covenant as to what other debts or obligations it may incur;
(6) covenant as to:
(i) the bonds to be issued;
(ii) their issuance, in escrow or otherwise; and
(iii) the use and disposition of their proceeds;
(7) provide for the replacement of lost, destroyed, or mutilated bonds;
(8) covenant against extending the time for the payment of its bonds or interest on them;
(9) redeem the bonds, covenant for their redemption, and provide the terms and conditions for their redemption;
(10) covenant, subject to the limitations in this Division II, as to:
(i) the rents and fees to be charged in the operation of a housing project or projects;
(ii) the amount to be raised each year or other period by rents, fees, and other revenues; and
(iii) the use and disposition of the rents, fees, and other revenues;
(11) create or authorize the creation of special funds for money held for construction or operating costs, debt service reserves, or other purposes, and covenant as to the use and disposition of the money held in those funds;
(12) prescribe any procedure by which the terms of contracts with bondholders may be amended or abrogated, the dollar amount of bonds whose holders must consent to an amendment or abrogation, and the way in which consent may be given;
(13) covenant as to the use of any or all of the authority's real or personal property, the replacement of the property, the insurance to be carried on the property, and the use and disposition of insurance money;
(14) covenant as to the rights, liabilities, powers, and duties arising on the breach by it of a covenant, condition, or obligation;
(15) covenant and prescribe as to the events of default and terms and conditions on which any or all of its bonds become or may be declared due before maturity, and as to the terms and conditions on which a declaration and its consequences may be waived;
(16) vest in a trustee or trustees or in the bondholders or any proportion of them the right to enforce:
(i) payment of the bonds; or
(ii) covenants securing or relating to the bonds;
(17) vest in a trustee or trustees the right, if the authority defaults, to:
(i) take in possession, use, operate, and manage all or part of a housing project;
(ii) collect the rents and revenues; and
(iii) dispose of the money in accordance with the agreement of the authority with the trustee or trustees;
(18) provide for the powers and duties of a trustee or trustees and limit the liabilities of the trustee or trustees;
(19) provide the terms and conditions on which the trustee or trustees or bondholders or any proportion of them may enforce any covenant or rights securing or relating to the bonds;
(20) make other covenants of a character like or unlike that of the covenants expressly authorized under this section; and
(21) make covenants and do acts and things that, although not listed in this section:
(i) are necessary, convenient, or desirable to secure the bonds of the authority; or
(ii) in the discretion of the authority, will tend to make the bonds more marketable.
Liens of pledges
(b)(1) A pledge made by an authority is binding from the time the pledge is made.
(2) The lien of the pledge, without any physical delivery or further act, attaches immediately to revenues or property pledged and thereafter received by an authority.
(3) The lien is binding against all persons having claims against the authority, whether or not:
(i) those persons have notice of the pledge; or
(ii) the determination or other instrument has been recorded or filed.

Credits

Added by Acts 2006, c. 63, § 2, eff. Oct. 1, 2006. Amended by Acts 2007, c. 5, § 1, eff. March 22, 2007.
MD Code, Housing & Community Development, § 12-704, MD HOUS & CMTY DEV § 12-704
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.
End of Document