Section 8-404 – Funding; Liability of State
A capital lease authorized under this subtitle: (1) shall be contingent on the availability of appropriated or other legally available funds, not including nonappropriated pension or retirement funds, that permit the timely payment of principal, interest, and other obligations, if any, imposed by the terms of the capital lease; (2) may not be construed or deemed to […]
Section 8-215 – Amount of Notes
(a) A State unit may not issue bond anticipation notes under this Part III of this subtitle in a total principal amount that exceeds the authorized amount of the bonds in anticipation of the sale of which the notes are issued and sold. (b) A State unit may not issue grant anticipation notes under this Part III […]
Section 8-405 – Payments on Lease
(a) Except for capital leases used to finance energy performance contracts excluded from tax supported debt under § 8–104 of this title, the Treasurer shall, at a reasonable market rate, capitalize the payments on a capital lease authorized under this subtitle on an annual basis for each fiscal year the lease is in effect. (b) The greater […]
Section 8-216 – Written Commitment for Grant
Grant anticipation notes may not be sold under this Part III of this subtitle until the State unit receives from the grantor a written commitment for the grant.
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.