An authority may: issue bonds for any of its corporate purposes; issue refunding bonds to pay or retire its bonds; and issue any kinds of bonds, including bonds on which the principal and interest are payable: only from the income and revenues of the housing project financed with the proceeds of the bonds or with these proceeds and a grant from the State or federal government in aid of the housing project; only from the income and revenues of designated housing projects whether or not they were financed wholly or partly with the proceeds of the bonds; or from its revenues generally. To secure any of its bonds, an authority may pledge any revenue or mortgage a housing project or other property of the authority.

Bonds of an authority are issued for an essential public and governmental purpose. Neither a commissioner of an authority nor a person who executes the bond for an authority is personally liable on the bonds. Neither the State nor a political subdivision is liable on the bonds. The bonds of an authority: are not a debt of the State or a political subdivision and shall state so on their face; are payable only out of money or property of the authority; and are not an indebtedness for purposes of a constitutional or statutory debt limitation or restriction. Bonds issued under this Division II and their transfer and the income from them, including any profit made on their sale, shall be free from taxation of every kind by the State and by all political subdivisions. Bonds issued by an authority are negotiable for the purposes of the Maryland Uniform Commercial Code, subject to the registration provisions of the Code. Bonds issued by an authority are securities in which money may be invested by: public officers and governmental units of the State or its political subdivisions; banks, trust companies, savings and loan associations, investment companies, and others carrying on a banking business; insurance companies, insurance associations, and others carrying on an insurance business; personal representatives, guardians, trustees, and other fiduciaries; and all other persons. Money that may be invested in the bonds includes capital that an investor owns or controls. Bonds issued by an authority are securities that may be deposited with or received by any State or municipal officer, governmental unit, or political subdivision of the State for any purpose for which the deposit of bonds of the State is authorized by law. This subsection: is intended only for any public approval requirement of the Internal Revenue Code relating to the issuance of tax-exempt obligations; and does not determine whether an authority is a governmental unit of the State or of a political subdivision. Subject to paragraph (1) of this subsection, an authority authorized under a resolution or ordinance of a political subdivision derives its authorization from the resolution or enactment rather than directly from State law.

Bonds of an authority shall be authorized by its resolution and may be issued in one or more series. The resolution, the trust indenture, or the mortgage shall provide for the bonds: a date or dates; the time or times of maturity; the interest rate or rates; the denomination or denominations; whether they will be in coupon or registered form; the conversion or registration privileges; their rank or priority; the manner of execution; the medium of payment; the place or places of payment; and the terms of redemption, with or without premium. Bonds may be sold at public or private sale in the manner and on the terms that a resolution of the authority authorizes. If a commissioner or officer of the authority whose signature is on a bond or coupon leaves office before the bond is delivered, the signature nevertheless is valid and sufficient, the same as if the commissioner or officer had remained in office until delivery. A bond reciting in substance that it has been issued by an authority to aid in financing a housing project to provide housing for persons of eligible income shall be considered to have been issued for that purpose in a proceeding involving the validity or enforceability of the bond or its security.

In connection with issuing bonds or incurring obligations under leases, and to secure payment of the bonds or obligations, an authority, in addition to its other powers, may: pledge any or all of the gross or net rents, fees, or revenues that are or will become due to it; mortgage any or all of the real or personal property that it owns or will own; covenant against: pledging any or all of its rents, fees, or other revenue; mortgaging any or all of the real or personal property that it owns or will own; or suffering any lien on anything listed under item (i) or (ii) of this item; covenant about limits on its right to sell, lease, or dispose of all or part of a housing project; covenant as to what other debts or obligations it may incur; covenant as to: the bonds to be issued; their issuance, in escrow or otherwise; and the use and disposition of their proceeds; provide for the replacement of lost, destroyed, or mutilated bonds; covenant against extending the time for the payment of its bonds or interest on them; redeem the bonds, covenant for their redemption, and provide the terms and conditions for their redemption; covenant, subject to the limitations in this Division II, as to: the rents and fees to be charged in the operation of a housing project or projects; the amount to be raised each year or other period by rents, fees, and other revenues; and the use and disposition of the rents, fees, and other revenues; create or authorize the creation of special funds for money held for construction or operating costs, debt service reserves, or other purposes, and covenant as to the use and disposition of the money held in those funds; prescribe any procedure by which the terms of contracts with bondholders may be amended or abrogated, the dollar amount of bonds whose holders must consent to an amendment or abrogation, and the way in which consent may be given; covenant as to the use of any or all of the authority’s real or personal property, the replacement of the property, the insurance to be carried on the property, and the use and disposition of insurance money; covenant as to the rights, liabilities, powers, and duties arising on the breach by it of a covenant, condition, or obligation; covenant and prescribe as to the events of default and terms and conditions on which any or all of its bonds become or may be declared due before maturity, and as to the terms and conditions on which a declaration and its consequences may be waived; vest in a trustee or trustees or in the bondholders or any proportion of them the right to enforce: payment of the bonds; or covenants securing or relating to the bonds; vest in a trustee or trustees the right, if the authority defaults, to: take in possession, use, operate, and manage all or part of a housing project; collect the rents and revenues; and dispose of the money in accordance with the agreement of the authority with the trustee or trustees; provide for the powers and duties of a trustee or trustees and limit the liabilities of the trustee or trustees; provide the terms and conditions on which the trustee or trustees or bondholders or any proportion of them may enforce any covenant or rights securing or relating to the bonds; make other covenants of a character like or unlike that of the covenants expressly authorized under this section; and make covenants and do acts and things that, although not listed in this section: are necessary, convenient, or desirable to secure the bonds of the authority; or in the discretion of the authority, will tend to make the bonds more marketable. A pledge made by an authority is binding from the time the pledge is made. The lien of the pledge, without any physical delivery or further act, attaches immediately to revenues or property pledged and thereafter received by an authority. The lien is binding against all persons having claims against the authority, whether or not: those persons have notice of the pledge; or the determination or other instrument has been recorded or filed.

In addition to all other rights that a contract may confer on an obligee of an authority, subject only to binding contractual restrictions, the obligee may: by a writ of mandamus or a proceeding at law or in equity, compel the authority and the authority’s commissioners, officers, agents, or employees to perform each term, provision, and covenant contained in a contract of the authority with or for the benefit of the obligee; require the carrying out of any covenant or agreement of the authority and the fulfillment of all duties imposed on the authority by this Division II; and by a proceeding in equity, enjoin any unlawful act or thing or the violation of any right of the obligee. By resolution, trust indenture, mortgage, lease, or other contract, an authority may confer the right to take action under subsection (c) of this section if a default, as defined in the resolution or instrument, occurs. The right may be conferred on an obligee that: holds or represents a specified amount in bonds or notes; or holds a mortgage, deed of trust, security instrument, or lease. An obligee that has the right under subsection (b) of this section to take action under this subsection may, by a proceeding in a court of competent jurisdiction: have possession of all or part of a housing project surrendered to any such obligee; require the authority and its commissioners to account as if the authority and its commissioners were trustees of an express trust; and have a receiver appointed for all or part of a housing project and its rents and profits. If a receiver is appointed, the receiver may: enter and take possession of the housing project or any part of the housing project; operate and maintain it; and collect and receive all fees, rents, revenues, or other charges thereafter arising from it. The receiver shall keep the money in a separate account or accounts and apply the money in accordance with the obligations of the authority as the court directs.