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§ 19-224. Bonds to be considered investment securities

West's Annotated Code of MarylandLocal GovernmentEffective: October 1, 2013

West's Annotated Code of Maryland
Local Government (Refs & Annos)
Division IV. Local Finance [Titles 16-23] (Refs & Annos)
Title 19. Public Debt (Refs & Annos)
Subtitle 2. Public Securities (Refs & Annos)
Part IV. Miscellaneous Provisions (Refs & Annos)
Effective: October 1, 2013
MD Code, Local Government, § 19-224
Formerly cited as MD CODE, Art. 31, § 8; MD CODE, Art. 31, § 12
§ 19-224. Bonds to be considered investment securities
Currentness
Scope of section
(a) This section applies only to the following governmental entities:
(1) a county;
(2) a municipality;
(3) a public corporation or other political subdivision of the State; and
(4) any instrumentality or agency of a county, municipality, public corporation, or other political subdivision of the State.
Effect of compliance with Commercial Law Article
(b)(1) A bond or grant anticipation note issued under Part III of this subtitle shall be considered investment securities to the extent set forth in this section.
(2) If a bond issued by a governmental entity otherwise complies with the requirements of the Commercial Law Article for investment securities, the bond shall be considered to be an investment security notwithstanding that:
(i) the ordinance, resolution, or other authority under which the bond is issued subjects the bond to an indenture or agreement that is separate from the ordinance, resolution, or authority;
(ii) the ordinance, resolution, or other authority under which the bond is issued limits payment of principal and interest to:
1. the proceeds of limited sources of revenue; or
2. a special fund established for that purpose;
(iii) any law limits payment of principal and interest to a certain amount or rate of tax that may be imposed; or
(iv) principal or interest are registrable.
Attributes of bond
(c) A bond that is considered to be an investment security under subsection (b) of this section has all the attributes of an investment security that are possessed by a bond that is:
(1) issued on the full faith and credit of the governmental entity;
(2) payable to bearer; and
(3) secured as to the payment of principal and interest by the unlimited taxing power of the governmental entity.

Credits

Added by Acts 2013, c. 119, § 2, eff. Oct. 1, 2013.
MD Code, Local Government, § 19-224, MD LOCAL GOVT § 19-224
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document