# State Finance and Procurement (GSF)

## Title 8. Debt

### Subtitle 3

#### Section 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.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)