<section article="ged" article_name="Education" number="19-101" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Academic facility” and “academic facilities” mean any facility or facilities, now existing or hereafter constructed or acquired, which are used primarily for the instruction of students of a system.</text> </level> <level label="2"> <text>“Academic facility” and “academic facilities” also mean any facility or facilities related, required, useful, or incidental for the operation or activities of a system which are not auxiliary facilities.</text> </level> </level> <level label="c"> <level label="1"> <text>“Academic fees” means tuition, student fees, and activity fees.</text> </level> <level label="2"> <text>“Academic fees” does not include:</text> <level label="i"> <text>An appropriation of State funds; or</text> </level> <level label="ii"> <text>Any revenues from contracts, grants, or gifts received or to be received by a system, other than contracts for tuition, student fees, or activity fees.</text> </level> </level> </level> <level label="d"> <text>“Auxiliary facilities fees” means income, fees, rents, charges, and revenues arising from the use of any auxiliary facilities.</text> </level> <level label="e"> <text>“Auxiliary facility” and “auxiliary facilities” mean any facility or facilities, now existing or hereafter constructed or acquired, which furnish a service to students, faculty, or staff at a system and which generate income, fees, rents, charges, and revenues arising from the use of the facility or facilities to support any project costs; such facilities shall include (but shall not be limited by type or class or otherwise to) housing facilities, eating facilities, recreational facilities, campus infirmaries, parking facilities, athletic facilities, student union or activity facilities, research facilities, laboratory facilities, testing facilities, and any related or incidental facility or any combination of such facilities.</text> </level> <level label="f"> <text>“Board” means the Board of Regents of the University System of Maryland, the Board of Regents of Morgan State University, the Board of Trustees of St. Mary’s College of Maryland, or the Board of Trustees of Baltimore City Community College.</text> </level> <level label="g"> <text>“Bonds” means revenue bonds, certificates, notes, demand notes, commercial paper, or other evidences of indebtedness and shall also include bond anticipation notes.</text> </level> <level label="h"> <text>“Capital lease” means any lease financing of real property which by generally accepted accounting principles is defined as a capital lease. For the purposes of this title, real property does not include fixtures.</text> </level> <level label="i"> <text>“Costs” as applied to any project means all costs in respect of the project, including (without limitation):</text> <level label="1"> <text>The cost of acquisition, construction, reconstruction, equipping, maintenance, repair, renovation, and operation;</text> </level> <level label="2"> <text>The cost of acquisition of all land, rights-of-way, property rights, easements, and interests acquired by a system;</text> </level> <level label="3"> <text>The cost of all machinery and equipment;</text> </level> <level label="4"> <text>Financing charges and interest prior to and during construction and for 1 year after completion of construction;</text> </level> <level label="5"> <text>The cost of architectural, engineering, and legal expenses, plans, specifications, feasibility studies, surveys, estimates of costs and revenue, and other expenses necessary or desirable for determining the feasibility or practicability of construction of any project;</text> </level> <level label="6"> <text>Reserves for the payment of debt service, operating reserves, and repair and replacement funds; and</text> </level> <level label="7"> <text>Administrative expenses, and other expenses necessary or allocable to any project, the financing or refinancing of any project, the issuance of bonds, and the placing of any project in operation.</text> </level> </level> <level label="j"> <text>“Project” or “projects” means the acquisition, construction, reconstruction, related demolition, equipment, maintenance, repair, renovation, financing, and refinancing of 1 or more auxiliary or academic facilities.</text> </level> <level label="k"> <text>“Resolution” means a resolution adopted by a majority of the members of the Board of Regents of the University System of Maryland, the Board of Regents of Morgan State University, the Board of Trustees of St. Mary’s College of Maryland, or the Board of Trustees of Baltimore City Community College.</text> </level> <level label="l"> <text>“State” means the State of Maryland.</text> </level> <level label="m"> <text>“System” means the University System of Maryland, Morgan State University, St. Mary’s College of Maryland, or Baltimore City Community College.</text> </level> </section> <section article="ged" article_name="Education" number="19-102" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <text>In order to provide auxiliary and academic facilities a system may:</text> <level label="1"> <text>Acquire, construct, reconstruct, equip, maintain, repair, renovate, and operate auxiliary and academic facilities at any of its campuses or locations, now existing or hereafter acquired;</text> </level> <level label="2"> <level label="i"> <text>Issue bonds for the purpose of financing or refinancing all or any part of the costs of any 1 or more projects of a system, including any project previously financed by a system or any predecessor; or</text> </level> <level label="ii"> <text>Issue bonds for the purpose of acquiring any auxiliary facility or academic facility previously financed through a capital lease with a system or any predecessor;</text> </level> </level> <level label="3"> <text>Establish 1 or more trust funds for the deposit of the proceeds of the bonds of any issue and retain the interest revenue or other investment income thereon to be applied to the costs of any project, but shall maintain separate accounts within any such trust funds for auxiliary facilities and for academic facilities;</text> </level> <level label="4"> <text>Fix, revise, charge, and collect auxiliary facilities fees and academic fees and pledge all or any part of such auxiliary facilities fees and academic fees as security for bonds issued for auxiliary and academic facilities by a system;</text> </level> <level label="5"> <text>Establish 1 or more trust funds for the deposit of any auxiliary facilities fees and academic fees which may be imposed pursuant to this title, and retain the interest revenue or other investment income thereon, for the purpose of acquiring, constructing, reconstructing, renovating, equipping, maintaining, repairing, and operating auxiliary and academic facilities;</text> </level> <level label="6"> <text>Acquire, hold, and dispose of real and personal property in the exercise of its powers and the performance of its duties under this title;</text> </level> <level label="7"> <text>Enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this title, and employ consulting engineers, architects, attorneys, construction and financial experts, and other employees and agents as may be necessary, and fix their compensation;</text> </level> <level label="8"> <text>Receive and accept from the United States of America or any agency thereof grants and loans for the purpose of financing or refinancing all or any part of the costs of any 1 or more projects, and receive and accept aid or contributions from any sources of money, property, labor, or other things of value, to be held, used, and applied for the purposes for which such grants and contributions were made; and</text> </level> <level label="9"> <text>Do all acts and things necessary or convenient to carry out the powers expressly granted by the provisions of this title.</text> </level> </level> <level label="b"> <text>A system may not pledge all or any part of the revenues received from:</text> <level label="1"> <text>A State appropriation;</text> </level> <level label="2"> <text>Contracts, grants, or gifts received or to be received by a system, other than contracts for tuition, student fees, activity fees, or auxiliary facilities fees; or</text> </level> <level label="3"> <text>Any other source not expressly authorized by the General Assembly.</text> </level> </level> <level label="c"> <level label="1"> <text>The aggregate principal amount of bonds outstanding and the present value of capital lease payments, less the amount of any reserve fund or sinking fund requirement established for the bonds or capital leases, may not exceed, as of the date of issue of the bonds, the following:</text> <level label="i"> <text>$1,700,000,000 for the University System of Maryland;</text> </level> <level label="ii"> <text>$140,000,000 for Morgan State University;</text> </level> <level label="iii"> <text>$60,000,000 for St. Mary’s College of Maryland; and</text> </level> <level label="iv"> <text>$65,000,000 for Baltimore City Community College.</text> </level> </level> <level label="2"> <text>Bonds outstanding do not include:</text> <level label="i"> <text>Bonds previously issued by a system or any predecessor that are to be refunded, but only:</text> <level label="1"> <text>To the extent of any outstanding principal on the bonds that are being refunded; and</text> </level> <level label="2"> <text>If an escrow or other similar arrangement has been made and held by the State Treasurer, a bank, or a trust company for the payment of such bonds, whether or not redeemed; or</text> </level> </level> <level label="ii"> <text>Borrowings pursuant to § 12–105(c) of this article, except to the extent that such borrowings are subject to a financing agreement the term of which is for more than 5 years for the acquisition of the personal property.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>A system may not issue bonds for the purpose of financing all or any part of the costs of any academic facility or facilities until the General Assembly has approved in an act the:</text> <level label="i"> <text>Project or projects for any academic facility or facilities; and</text> </level> <level label="ii"> <text>Maximum principal amount of bonds a system may issue in connection with such project or projects for any academic facility or facilities.</text> </level> </level> <level label="2"> <text>The General Assembly’s approval shall expressly authorize the project or projects for any academic facility or facilities and the maximum principal amount of bonds a system may issue in connection with such project or projects for the academic facility or facilities.</text> </level> <level label="3"> <text>Without the approval of the General Assembly, a system may issue bonds to refinance all or any part of the costs of any project for any academic facility or facilities for which a system previously issued bonds under the authority of this section.</text> </level> <level label="4"> <level label="i"> <text>Any bonds issued under the requirements of this subsection shall mature at such times not exceeding the useful life of the project for which the bonds are issued, but not later than 33 years after their respective dates of issue, as may be determined by a system.</text> </level> <level label="ii"> <text>Any bonds issued in accordance with paragraph (3) of this subsection shall mature at such times as may be determined by a system, but not later than 33 years after the date of issue of the bonds that were originally issued for the academic facility or facilities authorized under the requirements of this subsection.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>A system shall maintain records identifying the sources and amounts of payments used to support:</text> <level label="i"> <text>The auxiliary facilities; and</text> </level> <level label="ii"> <text>The academic facilities authorized under the requirements of this subtitle.</text> </level> </level> <level label="2"> <text>A system shall report:</text> <level label="i"> <text>By September 1 to the Board of Public Works and, subject to § 2–1257 of the State Government Article, to the Department of Legislative Services, the information for the prior fiscal year required under paragraph (1) of this subsection; and</text> </level> <level label="ii"> <text>By December 1, subject to § 2–1257 of the State Government Article, to the Department of Legislative Services, the anticipated sources and amounts of payments required for the next fiscal year for:</text> <level label="1"> <text>Auxiliary facilities; and</text> </level> <level label="2"> <text>Academic facilities authorized under the requirements of this title.</text> </level> </level> </level> </level> </section> <section article="ged" article_name="Education" number="19-103" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <level label="1"> <text>A system may provide, by resolution, from time to time, for the issuance, in series, of its bonds for the purpose of:</text> <level label="i"> <text>Financing or refinancing all or any part of the costs of any 1 or more projects of a system, including any project previously financed by a system or any predecessor; or</text> </level> <level label="ii"> <text>Acquiring any auxiliary facility or academic facility previously financed through a capital lease with a system or any predecessor.</text> </level> </level> <level label="2"> <text>The principal of the premium, if any, and interest on bonds for the auxiliary and academic facilities shall be payable solely from: The auxiliary facilities fees of a system; the academic fees of a system; a State appropriation expressly authorized for that purpose; or the revenues from contracts, grants, or gifts received or to be received by a system. A system shall maintain separate accounts to identify the sources of payment of the bonds for the auxiliary facilities and for the academic facilities.</text> </level> <level label="3"> <text>Any resolution shall describe the auxiliary and academic facility or facilities to be financed or refinanced by the bonds, the maximum principal amount of the bonds, the sources of payment of the bonds for any auxiliary facilities, and the sources of payment of the bonds for any academic facilities.</text> </level> <level label="4"> <text>The resolution may also prescribe the other matters required or permitted to be determined by a system under this title or may provide that such matters may be prescribed in a trust agreement relating to the bonds that has been approved by such members of the Board as the resolution may prescribe.</text> </level> </level> <level label="b"> <level label="1"> <text>The bonds of each issue shall be dated, shall bear interest at such rate or rates, and interest may be calculated in accordance with any method, as may be determined by a system.</text> </level> <level label="2"> <level label="i"> <text>The bonds of each issue for any auxiliary facilities shall mature at such time or times not exceeding the useful life of the project for which the bonds are issued, but in no event exceeding 33 years from their date or dates of issue, as may be determined by a system.</text> </level> <level label="ii"> <text>The bonds of each issue for any academic facilities shall mature at such times, not exceeding the useful life of the project, but not later than 21 years after their respective dates of issue, as may be determined by a system.</text> </level> </level> <level label="3"> <text>The bonds of each issue may be made redeemable before maturity at such price or prices and under such terms and conditions or in accordance with such method, as may be fixed by a system prior to the issuance of the bonds.</text> </level> <level label="4"> <text>A system shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest which may be at any bank or trust company within or without the State.</text> </level> </level> <level label="c"> <text>The bonds shall bear the manual or facsimile signature of the chairman or one of the other members of the Board. The official seal of a system or a facsimile thereof shall be affixed to the bonds, attested by the manual or facsimile signature of the secretary or any assistant secretary of the Board. In case any officer whose manual or facsimile signature appears on any bonds or coupons ceases to be an officer before the delivery of the bonds, the signature or facsimile thereof is valid and sufficient for all purposes as if the officer had remained in office until delivery.</text> </level> <level label="d"> <text>All bonds issued under the provisions of this title shall have all the qualities and incidents of negotiable instruments under the laws of the State relating to negotiable instruments. The bonds may be issued in coupon, registered, or book entry form or any combination thereof. A system may sell bonds at a public or private (negotiated) sale for any price.</text> </level> <level label="e"> <level label="1"> <text>The proceeds of the bonds of each issue shall be used:</text> <level label="i"> <text>For the payment of the financing or refinancing of or reimbursement to a system of the costs of any project for which the bonds are issued;</text> </level> <level label="ii"> <text>For the acquisition of any auxiliary facility or academic facility previously financed through a capital lease with a system or any predecessor; or</text> </level> <level label="iii"> <text>For any combination thereof.</text> </level> </level> <level label="2"> <text>The proceeds of the bonds of each issue shall be disbursed under the terms and conditions of the resolution or trust agreement relating to such bonds. The resolution or trust agreement may provide for the issuance of additional bonds to finance or refinance any auxiliary facility or any academic facility that was authorized under the requirements of this title. Unless otherwise provided in the resolution authorizing the issuance of the bonds or in the trust agreement securing them, the additional bonds shall be deemed to be of the same issue and shall be entitled to payment from the same sources without preference or priority of the bonds first issued.</text> </level> </level> <level label="f"> <text>Prior to the preparation of definitive bonds, a system, under like restrictions, may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds are executed and available for delivery. The resolution or trust agreement may provide for the replacement of any bonds mutilated, destroyed, or lost.</text> </level> <level label="g"> <text>Bonds may be issued under the provisions of this title without obtaining the consent of any department, division, commission, board, bureau, or agency of the State, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions, or things which are required specifically by provisions of this title. The provisions of Title 8, Subtitle 2 of the State Finance and Procurement Article do not apply to bonds issued under the provisions of this title.</text> </level> <level label="h"> <text>Any bonds issued under the authority of this title do not create or constitute any indebtedness or obligation of the State or of any political subdivision thereof except a system, and the bonds shall so state on their face. The bonds do not constitute a debt or obligation contracted by the General Assembly or pledge the faith and credit of the State within the meaning of Article III, § 34 of the Maryland Constitution.</text> </level> <level label="i"> <level label="1"> <text>Under the resolution or trust agreement, a system may pledge to the payment of the principal of and premium, if any, and interest on the bonds:</text> <level label="i"> <text>All or any part of a system’s auxiliary facilities fees and academic fees;</text> </level> <level label="ii"> <text>The proceeds of the bonds and investment earnings thereon; and</text> </level> <level label="iii"> <text>Reserves or other funds established for the bonds under the resolution or trust agreement or other money which may lawfully be applied to the payment of the bonds.</text> </level> </level> <level label="2"> <text>Prior to and during construction and for 1 year after completion of construction of any auxiliary or academic facilities for which bonds have been issued, the interest on the bonds may be paid out of the proceeds of the bonds or out of other money allocated for that purpose.</text> </level> </level> <level label="j"> <level label="1"> <text>A system may provide, from time to time, for the issuance and sale of its bond anticipation notes in accordance with the procedures set forth in this title for the issuance of bonds. The principal of and premium, if any, and interest on the notes shall be payable out of the first proceeds of sale of any series of bonds issued under the provisions of this title or any other sources from which bonds issued hereunder could be paid.</text> </level> <level label="2"> <text>Bond anticipation notes may be issued in series as funds are required and may be renewed or extended at maturity with or without resale. All such notes shall be sold and executed in the same manner as provided for bonds issued pursuant to this title.</text> </level> <level label="3"> <text>Except where the provisions of this title would be inapplicable to bond anticipation notes, the term “bonds” used in this title shall include bond anticipation notes, including (without in any way limiting the foregoing) the provisions pertaining to the exemption from taxation by the State and its political subdivisions.</text> </level> </level> <level label="k"> <text>In connection with the issuance of any bonds, after consultation with the Treasurer a system may obtain, or enter into such agreements and contracts for, bond insurance, reserve fund insurance, a letter of credit, a line of credit, or any form of additional, substitute or replacement security for any bonds and a system may pledge or assign all or any part of its auxiliary facilities fees and academic fees to the repayment or reimbursement of the provider of such bond insurance, reserve fund insurance, letter of credit, line of credit, or other form of additional, substitute, or replacement security. Any such agreements and contracts may contain such covenants, terms, and conditions as may be contained in any trust agreement for any bonds.</text> </level> </section> <section article="ged" article_name="Education" number="19-104" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <text>Any bonds issued under the provisions of this title may be secured by a trust agreement between a system and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the State.</text> </level> <level label="b"> <text>Any trust agreement may pledge or assign all or any part of a system’s auxiliary facilities fees and academic fees.</text> </level> <level label="c"> <text>Any trust agreement or any resolution providing for the issuance of bonds may contain provisions for protecting and enforcing the rights and remedies of the bondholders reasonable and proper and not in violation of law, including covenants which shall include but not be limited to:</text> <level label="1"> <text>The duties of a system in relation to the acquisition of property, and the construction, improvement, maintenance, repair, operation, use, and insurance of any auxiliary facilities or any academic facilities authorized under the requirements of this title;</text> </level> <level label="2"> <text>The duties of a system in relation to auxiliary facilities fees and academic fees;</text> </level> <level label="3"> <text>The custody, safeguarding, and application of all money;</text> </level> <level label="4"> <text>Provisions for the employment of independent consultants in connection with the construction or operation of the auxiliary facilities or any academic facilities authorized under the requirements of this title and requirements that a system follow the recommendation of such independent consultants; and</text> </level> <level label="5"> <text>Provisions in the nature of rate covenants requiring the establishment and revision of auxiliary facilities fees and academic fees at certain levels or in accordance with procedures set forth therein or requiring the maintenance of expenses at certain levels or in accordance with procedures set forth therein.</text> </level> </level> <level label="d"> <text>Any bank or trust company incorporated under the laws of the State which acts as a depository of the proceeds of the bonds or revenues may furnish indemnifying bonds or pledge securities as required by a system.</text> </level> <level label="e"> <text>Any trust agreement or any resolution providing for the issuance of bonds may provide the rights and remedies of bondholders and trustees, and may restrict the individual right of action by bondholders.</text> </level> <level label="f"> <text>Any trust agreement or any resolution may contain other provisions a system deems reasonable and proper for the security of the bondholders, including, but not limited to, covenants to abandon, restrict, or prohibit the construction or operation of competing facilities and covenants pertaining to the issuance of additional parity bonds upon stated conditions.</text> </level> <level label="g"> <text>The resolution providing for the issuance of bonds is a trust agreement if it so stipulates.</text> </level> <level label="h"> <text>All expenses incurred in carrying out the provisions of any trust agreement or any resolution may be treated as a part of the cost of the operation of the auxiliary or academic facilities.</text> </level> </section> <section article="ged" article_name="Education" number="19-105" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <text>A system may contract for the use of or admission to all or any part of any auxiliary facility or any academic facility that was authorized under the requirements of this title with any person, partnership, association, corporation, entity, or agency and may fix the terms, conditions, fees, rents, and rates of charges for use or admission. Such fees, rents, and charges may not be subject to supervision or regulation by any other commission, board, bureau, or agency of the State.</text> </level> <level label="b"> <text>The resolution or trust agreement relating to any bonds may provide that the auxiliary facilities fees and academic fees that have been assigned or pledged as security for the bonds of a system, except the part necessary to pay the cost of maintaining, equipping, repairing, and operating the auxiliary facilities and to provide reserves as provided for in the resolution authorizing the issuance of the bonds or in the trust agreement securing them, shall be set aside at regular intervals in a sinking fund which is hereby pledged to, and charged with, the payment of:</text> <level label="1"> <text>The interest upon the bonds when due;</text> </level> <level label="2"> <text>The principal of the bonds when due;</text> </level> <level label="3"> <text>The necessary charges of paying agents for paying principal and interest; and</text> </level> <level label="4"> <text>The redemption price or purchase price of bonds retired by call or purchase as provided in the resolution or trust agreement.</text> </level> </level> <level label="c"> <text>The pledge is valid and binding from the time when made.</text> </level> <level label="d"> <text>Auxiliary facilities fees and academic fees so pledged and thereafter received by a system are immediately subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge of auxiliary facilities fees and academic fees and the rights to receive the same is valid and binding against all parties having any claims of any kind in tort, contract, or otherwise against a system, irrespective of whether such parties have notice thereof.</text> </level> <level label="e"> <text>Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded, pursuant to the Maryland Uniform Commercial Code or otherwise, except in the records of a system.</text> </level> <level label="f"> <text>The use and disposition of money to the credit of the sinking fund or other funds or accounts established under the resolution or trust agreement are subject to the provisions of the resolution authorizing the issuance of the bonds or of the trust agreement.</text> </level> <level label="g"> <text>Notwithstanding any provision of this section, a system may, by resolution passed prior to the issuance of bonds under the provisions of this title or in the trust agreement securing the bonds, covenant to pay all or any part of the cost of maintaining, equipping, repairing, and operating any auxiliary facilities or any academic facilities authorized under the requirements of this title. Each covenant has the force of contract between a system and the holders of the bonds issued on account of the project or projects.</text> </level> </section> <section article="ged" article_name="Education" number="19-106" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <text>All money received by a system as proceeds from the sale of bonds authorized by this title and all money received by a system by way of auxiliary facilities fees or academic fees which are assigned or pledged as security for the bonds shall be deemed to be trust funds to be held and applied as provided by the provisions of this title.</text> </section> <section article="ged" article_name="Education" number="19-107" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <text>The exercise of the powers granted by the provisions of this title shall be for the benefit of the people of the State, for the increase of their education and prosperity, and for the improvement of their health, living conditions, and general welfare.</text> </level> <level label="b"> <text>The operation and maintenance of auxiliary or academic facilities by a system constitutes the performance of essential governmental functions.</text> </level> <level label="c"> <text>A system may not be required to pay any taxes or assessments upon any building or buildings or any property, real, personal, or mixed, acquired or used under the provisions of this title or upon the income therefrom.</text> </level> <level label="d"> <text>Bonds issued under the provisions of this title, their transfer and income, including any profit made on their sale, are free from taxation by the State or by any of its political subdivisions, or by any town or incorporated municipality or any other public agency within the State.</text> </level> </section> <section article="ged" article_name="Education" number="19-108" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <text>A system may provide by resolution for the issuance of bonds for the purpose of refunding any bonds or refunding bonds then outstanding including the payment of any redemption premium and any interest accrued or to accrue to the date of redemption of the bonds and any issuance costs of refunding bonds.</text> </level> <level label="b"> <text>The provisions of this title govern:</text> <level label="1"> <text>The issuance of the refunding bonds;</text> </level> <level label="2"> <text>Their maturities and other details;</text> </level> <level label="3"> <text>The rights and remedies of the bondholder;</text> </level> <level label="4"> <text>The security for the refunding bonds; and</text> </level> <level label="5"> <text>The rights, duties, and obligations of a system.</text> </level> </level> </section> <section article="ged" article_name="Education" number="19-109" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <text>Bonds issued under the provisions of this title are securities in which all of the following may legally and properly invest funds, including capital in their control or belonging to them:</text> <level label="1"> <text>Public officers and public agencies of the State and its political subdivisions;</text> </level> <level label="2"> <text>Banks, trust companies, savings and loan associations, investment companies, and others carrying on a banking business;</text> </level> <level label="3"> <text>Insurance companies and insurance associations and others carrying on an insurance business;</text> </level> <level label="4"> <text>Administrators, executors, guardians, trustees, and other fiduciaries; and</text> </level> <level label="5"> <text>All other persons.</text> </level> </level> <level label="b"> <text>The bonds are securities which may properly and legally be deposited with and received by any State or municipal office or any agency or political subdivision of the State for any purpose for which the deposit of bonds or other obligations of the State is now or hereafter authorized by law.</text> </level> </section> <section article="ged" article_name="Education" number="19-110" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <text>The title to any property acquired or constructed under the provisions of this title shall be in the State of Maryland for the use of a system.</text> </level> <level label="b"> <text>The State consents to the use of any lands owned by it for the use of a system which may be suitable and necessary for the construction or operation of any of the buildings and facilities authorized by the provisions of this title and covenants that it will not revoke this consent during the term of bonds secured by auxiliary facilities fees or academic fees or facilities constructed thereon.</text> </level> </section> <section article="ged" article_name="Education" number="19-111" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <level label="a"> <text>The provisions of this title, being necessary for the welfare of the State and its inhabitants, shall be liberally construed to effect the purposes thereof.</text> </level> <level label="b"> <text>The provisions of this title are severable, and if any of such provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions.</text> </level> </section> <section article="ged" article_name="Education" number="19-112" title_number="19" title_name="Auxiliary and Academic Facilities Bond Authority" subtitle_number="1"> <text>This title may be referred to as the Auxiliary and Academic Facilities Bond Authority.</text> </section>