§ 4-245. Authority to borrow money and issue bonds or notes

   (a) In general. --

   (1) The Administration may:

      (i) borrow money and issue bonds or notes; and

      (ii) use the proceeds or the earnings from the investment of the proceeds to provide money to:

         1. make, purchase, or participate in making mortgage loans or other loans;

         2. purchase securities backed by mortgage loans or other loans;

         3. purchase local obligations;

         4. meet any development cost; or

         5. achieve any other purpose of the Administration.

   (2) Bonds or notes may be issued only if:

      (i) the Director, or a person that the Secretary designates, determines that the issuance is necessary to achieve one or more purposes of the Administration; and

      (ii) the Secretary approves the determination.

   (3) Without any other proceeding, action, or approval, the determination is effective when approved by the Secretary and is conclusive.

(b) Terms and conditions. -- For bonds or notes of any issue, the Administration has absolute discretion to determine:

   (1) the date, amount, and manner of issue, including private sale;

   (2) the date of maturity, which:

      (i) for a bond, may not be more than 50 years after the bond is issued; and

      (ii) for a note, including renewals, may not be more than 5 years after the note is originally issued;

   (3) the price to be paid, whether above, at, or below par, the interest rate to be paid, and the dates of payment;

   (4) the form, denomination, and manner of execution, which may be by facsimile;

   (5) the place of payment, which may be any bank or trust company in or out of the State;

   (6) whether they are redeemable before maturity and, if so, the terms, conditions, and prices of the redemption; and

   (7) any other matter relating to the form, terms, conditions, security, issuance, sale, delivery, replacement, and indemnification in connection with replacement or payment.

(c) Negotiability. -- A bond or note issued under this section is a negotiable instrument under State law notwithstanding any other provision of the Code or any recital in the bond or note.

(d) Validity of signatures. -- The manual or facsimile signature of an officer or employee of the Administration that appears on a bond, note, or coupon is valid even if the individual leaves office or employment before delivery of the bond, note, or coupon.

(e) Form of bonds or notes. -- The Administration may:

   (1) issue its bonds or notes in coupon or registered form or both; and

   (2) provide for:

      (i) registration of coupon bonds or notes as to principal only or as to both principal and interest;

      (ii) reconversion into coupon form of bonds or notes registered as to both principal and interest; and

      (iii) interchange of coupon and registered bonds or notes.

(f) Applicability of State Finance and Procurement Article. -- A bond or note issued under this section is exempt from § 8-206, 8-208, and 8-213 through 8-221 of the State Finance and Procurement Article.

(g) Authority of other State units. -- The Administration may issue a bond or note without:

   (1) the consent of another governmental unit of the State; or

   (2) a proceeding, or the occurrence of a condition, other than those that this section expressly requires.

(h) Personal liability. -- The Secretary and any other person executing a bond or note under this section are not personally liable or accountable because the bond or note is issued.

HISTORY: An. Code 1957, art. 83B, § 2-206(c)-(j); 2005, ch. 26, § 2.