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Maryland Code, Local Government § 19-224

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) This section applies only to the following governmental entities:

(1) a county;

(2) a municipality;

(3) a public corporation or other political subdivision of the State; and

(4) any instrumentality or agency of a county, municipality, public corporation, or other political subdivision of the State.

(b)(1) A bond or grant anticipation note issued under Part III of this subtitle shall be considered investment securities to the extent set forth in this section.

(2) If a bond issued by a governmental entity 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:

(i) the ordinance, resolution, or other authority under which the bond is issued subjects the bond to an indenture or agreement that is separate from the ordinance, resolution, or authority;

(ii) the ordinance, resolution, or other authority under which the bond is issued limits payment of principal and interest to:

1. the proceeds of limited sources of revenue; or

2. a special fund established for that purpose;

(iii) any law limits payment of principal and interest to a certain amount or rate of tax that may be imposed; or

(iv) principal or interest are registrable.

(c) A bond that is considered to be an investment security under subsection (b) of this section has all the attributes of an investment security that are possessed by a bond that is:

(1) issued on the full faith and credit of the governmental entity;

(2) payable to bearer; and

(3) secured as to the payment of principal and interest by the unlimited taxing power of the governmental entity.

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Cite this article: FindLaw.com - Maryland Code, Local Government § 19-224 - last updated January 01, 2025 | https://codes.findlaw.com/md/local-government/md-code-local-govt-sect-19-224/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

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