§ 19–224
Statutes in effect as of October 1, 2026.
Md. Code Ann., Local Gov't § 19-224 (2026)
Title 19. Public Debt
Subtitle 2. Public Securities
§ 19–224LinkCopy Citation
(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.