Section 8-407 – Compliance With Internal Revenue Code; Exclusion of Interest From Gross Income
(a) (1) In this section the following words have the meanings indicated. (2) “Code” means the Internal Revenue Code of 1986 and includes regulations and rulings issued under that Code. (3) (i) “Financial officer” means the secretary of the principal department that includes the appropriate unit or the head of the unit if the unit is an independent unit. (ii) “Financial […]
Section 8-406 – Disposition of Lease Proceeds
(a) (1) The State Treasurer may deposit the proceeds of a capital lease authorized under this subtitle in an escrow account or similar arrangement. (2) The proceeds may be withdrawn for the purpose of making payment due under the terms of the capital lease. (3) A withdrawal made under the provisions of this section shall be made in accordance […]
Section 8-217 – Signing of Notes
(a) A bond anticipation note may not be issued under this Part III of this subtitle unless it is signed, endorsed, or guaranteed in the manner required by law for the bonds in anticipation of which the note is issued. (b) A bond or grant anticipation note is valid and binding in accordance with its terms notwithstanding […]
Section 8-218 – Payment of Principal and Interest
(a) (1) The principal of and interest on bond anticipation notes under this Part III of this subtitle shall be payable from: (i) the 1st proceeds of sale of the bonds; or (ii) the tax or other revenue that the State unit has pledged to the payment of the bonds. (2) One year’s interest on the notes, or on any […]
Section 8-219 – Proceeds of Sale of Bond Anticipation Notes
The proceeds of sale of bond anticipation notes shall be spent: (1) 1st, for payment of the expenses of issuance of the notes; and (2) then, subject to § 8-218(a)(2) of this subtitle, only for the public purposes for which the bonds are authorized.
Section 8-220 – Interest Rate Limit on Bonds
(a) (1) Except for the provisions of this section, each State unit shall comply with the provisions, requirements, and limitations in the enabling act. (2) If a State unit is unable to sell bonds to pay the bond anticipation notes under this Part III of this subtitle when due because of an interest rate limitation in the enabling […]
Section 8-221 – Commercial Paper
(a) A State unit may issue bond or grant anticipation notes under this Part III of this subtitle as notes in the nature of commercial paper. (b) A bond or grant anticipation note issued as a note in the nature of commercial paper may be secured by: (1) a trust indenture with a trust company, or a bank […]
Section 8-222 – Exemption From Taxation
The following obligations are exempt from State and local taxation: (1) a bond or grant anticipation note issued under this part; (2) a bond issued to pay the notes issued under item (1) of this section; and (3) the interest on the obligations.
Section 8-301 – Contract to Spend General Obligation Loan Proceeds
(a) Except as provided in subsection (b) of this section or in other law, a contract to spend the proceeds of a general obligation loan that has been authorized by any act of the General Assembly may not be executed until the Board of Public Works approves the contract. (b) (1) Approval by the Board of Public Works […]
Section 8-302 – Bonds to Be Considered Investment Securities
(a) In this section, “bond” means an obligation of the State or of any of its units or instrumentalities. (b) If a bond otherwise complies with the requirements of the Commercial Law Article for investment securities, the bond shall be considered to be an investment security notwithstanding that: (1) the resolution or other authority under which the bond […]