# Local Government (GLG)

## Title 19. Public Debt

### Subtitle 2. Public Securities

#### Section 19-224

(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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Md. Code Ann., Local Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)