§ 10-221. Bonds -- Trust agreement

   (a) Corporate trustee. --

   (1) The Authority may secure a bond by a trust agreement between the Authority and a corporate trustee.

   (2) A corporate trustee may be any trust company or bank that has the powers of a trust company in or outside the State.

(b) Provisions. -- The trust agreement or the resolution that provides for the issuance of a bond may:

   (1) provide for the protection and enforcement of rights and remedies of bondholders, including covenants setting forth the duties of the Authority in relation to:

      (i) acquisition, improvement, maintenance, operation, and insurance of the development or project; and

      (ii) custody, safeguarding, and application of money;

   (2) provide for the rights and remedies of bondholders and of the trustee;

   (3) restrict the individual right of action by bondholders as is customary in trust agreements securing bonds of corporations;

   (4) provide for the deposit of the proceeds of the sale of bonds and the revenue of a development or project with an officer, board, or depositary that the Authority designates as custodian; and

   (5) provide for the method of disbursing the proceeds and revenues with safeguards and restrictions that the Authority determines.

(c) Security for bonds. --

   (1) Except as provided in paragraph (2) of this subsection and § 10-222 of this subtitle, a trust agreement may pledge or assign revenues to be received from the development or project.

   (2) No portion of a development or project may be conveyed or mortgaged without the express consent of the Board of Public Works.

(d) Use of proceeds. -- The trust agreement may authorize the use of money realized from the sale or disposition of any of the property of a development or project to pay principal of and interest on the bonds.

(e) Expenses. -- Expenses incurred in carrying out a trust agreement may be treated as part of the cost of maintenance, repair, and operation of a development or project.

(f) Authority of bank or trust company. -- A bank or trust company incorporated in the State may act as a depositary of the proceeds of the bonds or the revenues and furnish indemnity bonds or pledge securities as required by the Authority.

HISTORY: An. Code 1957, art. 41, § 13-111(m); 2008, ch. 306, § 2.