§ 9-941. Principal and interest; maturity; form; negotiability; registration; reconversion

   (a) Principal and interest. -- An authority shall pay the principal of and interest on its bonds only from the funds from which this subtitle authorizes payment.

(b) Date of issue, maturity, and redemption of bonds. -- For any bond that an authority issues, the authority:

   (1) Shall place the date of issue on the bond;

   (2) Shall set the maturity date for the bond, which shall be any time up to 40 years from the date of issue; and

   (3) May provide for the redemption of the bond before maturity:

      (i) At the option of the authority; and

      (ii) At a price and on terms and conditions that the authority fixes before it issues the bond.

(c) Validity of bonds or coupons signed by former officer. -- A bond or certificate that otherwise conforms to this section is valid and sufficient for all purposes whether or not the officer whose signature or a facsimile of whose signature is on the bond or certificate is still an officer when the bond or certificate is delivered.

(d) Form of bonds. -- An authority:

   (1) Shall determine the form of its bond; and

   (2) May issue its bonds in coupon or registered form or both.

(e) Manner of execution, denomination, and place of payment of bonds. -- An authority shall determine:

   (1) The manner of execution of its bonds;

   (2) The denominations of its bonds; and

   (3) The places for payment of the principal of and interest on its bonds, which may be any bank or trust company.

(f) Negotiability. -- A bond issued under this subtitle is fully negotiable as provided in Title 8 of the Commercial Law Article.

(g) Registration and reconversion of bonds. -- An authority may provide for:

   (1) The registration of any coupon bond as to:

      (i) Principal only; or

      (ii) Both principal and interest; and

   (2) The reconversion into a coupon bond of any bond that is registered as to both principal and interest.

HISTORY: 1985, ch. 173, § 2.