§ 12-205. Conditions of issuance

   (a) In general. -- A bond:

   (1) may be in bearer form;

   (2) may be registrable as to principal alone or as to both principal and interest; and

   (3) is a "security" under § 8-102 of the Commercial Law Article, whether or not the bond is one of a class or series or is divisible into a class or series of instruments.

(b) Execution. --

   (1) A bond shall be signed manually or in facsimile by the chief executive of the issuer.

   (2) An officer's signature or facsimile signature on a bond remains valid even if the officer leaves office before the bond is delivered.

   (3) The clerk or other similar administrative officer of the issuer shall attest to and affix to each bond the seal of the issuer.

(c) Maturity. -- A bond shall mature not later than 40 years after the date of issue.

(d) Terms of sale. --

   (1) The issuer may sell bonds at competitive or negotiated sale in any manner and on any terms that it considers best.

   (2) A contract to acquire property may provide that payment shall be made in bonds.

   (3) Bonds are exempt from § 19-205 and 19-206 of the Local Government Article.

HISTORY: An. Code 1957, art. 41, § 14-212; 2008, ch. 306, § 2; 2013, ch. 136.