§ 8-302
208 words·~1 min read·
/md/state-finance-and-procurement/8-302·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§8–302.
(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 is issued subjects the bond to an indenture or agreement that is separate from the resolution or authority;
(2)the resolution or other authority under which the bond is issued limits payment of principal and interest to:
(i)the proceeds of limited sources of revenue; or
(ii)a special fund established for that purpose;
(3)any law limits payment of principal and interest to a certain amount or rate of tax that may be imposed; or
(4)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 issuer;
(2)payable to bearer; and
(3)secured as to the payment of principal and interest by the unlimited taxing power of the issuer.