Section 10-218 - Bonds - In general.
§ 10-218. Bonds - In general.
(a) Resolution; limitation.- The Authority may authorize the issuance of federally tax-exempt or federally taxable revenue bonds by resolution.
(b) Purposes.- The Authority may issue revenue bonds:
(1) to pay any part of the cost of developments or projects;
(2) to fund a deficit in accordance with subsection (i) of this section;
(3) to pay the cost of improvements of developments or projects in accordance with subsection (j) of this section;
(4) to refund outstanding bonds issued under this subtitle; and
(5) for any other purpose set forth in this subtitle.
(c) Timing.- The Authority may issue the bonds at one time or in one or more series from time to time.
(d) Terms and conditions.- The Authority shall determine:
(1) the dates of the bonds;
(2) the maturity dates of the bonds, which may not exceed 40 years from the date of their issue;
(3) the interest rates on the bonds;
(4) the medium of payment of the principal of and interest on the bonds;
(5) interest payment dates on the bonds, which shall occur twice in every 12 months;
(6) the form of the bonds;
(7) the manner of executing the bonds;
(8) the denominations of the bonds; and
(9) the places at which the principal of and interest on the bonds will be payable, including a bank or trust company in or outside the State.
(e) Early redemption.- The bonds may be redeemed before maturity at the option of the Authority at the prices and under terms and conditions that the Authority sets before the bonds are issued.
(f) Validity of signature.- An officer's signature or facsimile on a bond remains valid even if the officer leaves office before the bond is delivered.
(g) Sale.-
(1) The Authority shall sell the bonds either by competitive or negotiated sale in a manner and for a price that the Authority determines to be in its best interests.
(2) The bonds are exempt from §§ 8-206 and 8-208 of the State Finance and Procurement Article.
(h) Temporary revenue bonds; replacement bonds.-
(1) Before it prepares definitive revenue bonds, the Authority may issue temporary revenue bonds meeting the requirements of this section that are exchangeable for definitive revenue bonds when issued.
(2) The Authority may replace bonds that are mutilated, lost, or destroyed.
(3) The Authority may issue replacement bonds or bonds exchanged for temporary revenue bonds without:
(i) another proceeding; or
(ii) the satisfaction of any other condition.
(i) Additional bonds - To fund deficit.-
(1) If the proceeds of the bonds are less than the amount required for the purpose for which the bonds were authorized, the Authority may issue additional bonds to fund the amount of the deficit.
(2) Unless otherwise provided in the resolution authorizing the issuance of bonds or in the trust agreement, the additional bonds are:
(i) considered to be of the same issue as the first issue; and
(ii) entitled to payment from the same funds as the first issue, without preference or priority of the bonds of the first issue.
(j) Additional bonds - For extensions, additions, and improvements.-
(1) The resolution authorizing the issuance of bonds may provide for the issuance of additional bonds to pay the cost of any necessary improvements.
(2) The additional bonds:
(i) may be limited in amount by the resolution or trust agreement;
(ii) shall be considered part of the first issue authorized by the resolution; and
(iii) shall be issued under the restrictions and limitations provided by the resolution or trust agreement.
[An. Code 1957, art. 41, § 13-111(a), (b), (d)-(f), (h)-(k); 2008, ch. 306, § 2.]