<section article="gtr" article_name="Transportation" number="3-101" title_number="3" title_name="Financing by Department" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Airport facility”:</text> <level label="1"> <text>Has the meaning stated in § 5-101 of this article; and</text> </level> <level label="2"> <text>Includes any one or more or combination of air navigation facilities, as defined in § 5-101 of this article.</text> </level> </level> <level label="c"> <text>“Bonds of prior issues” means:</text> <level label="1"> <text>All “State highway construction bonds, second issue” and “State highway construction bonds, third issue” issued and sold under Article 89B of the Code of 1957; and</text> </level> <level label="2"> <text>All bonds issued and sold under Article 62B of the Code of 1957, evidencing the “Maryland Port Authority Loan of 1958”, “Maryland Port Authority Second Loan of 1961”, and “Maryland Port Authority Loan of 1967”.</text> </level> </level> <level label="d"> <text>“Cost”, as applied to any transportation facility, includes the cost of and all expenses incident to the construction, reconstruction, acquisition, improvement, extension, alteration, modernization, planning, maintenance, and repair of the facility, including the cost and expenses of:</text> <level label="1"> <text>All property acquired in connection with it;</text> </level> <level label="2"> <text>Financial, architectural, consulting, engineering, and legal services;</text> </level> <level label="3"> <text>Plans, specifications, surveys, estimates, feasibility reports, and direct and indirect labor, material, equipment, and administrative expenses; and</text> </level> <level label="4"> <text>Financing the facility, including financing charges and interest before, during, and for 1 year after completion of construction.</text> </level> </level> <level label="e"> <text>“Debt service” means the amount annually needed to pay the maturing principal of and interest on bonds, notes, and other evidences of obligation and to meet sinking fund requirements for these purposes.</text> </level> <level label="f"> <level label="1"> <text>In this definition, “highway” and “State highway system” have the meanings stated in § 8-101 of this article.</text> </level> <level label="2"> <text>“Highway facility” includes any one or more or combination of projects involving the rehabilitation and reconstruction of highways in the State highway system to meet present and future needs and the development and construction in new locations of new highways necessitated by traffic demands to become parts of the State highway system, including federally aided highway projects partially funded by this State and all incidental property rights, materials, facilities, and structures.</text> </level> </level> <level label="g"> <text>“Outstanding and unpaid” does not include:</text> <level label="1"> <text>Bonds purchased and held in sinking funds by or for the Department; or</text> </level> <level label="2"> <text>If the money for their payment or redemption has been provided:</text> <level label="i"> <text>Matured bonds not presented for payment; or</text> </level> <level label="ii"> <text>Bonds called for redemption but not presented for redemption.</text> </level> </level> </level> <level label="h"> <text>“Port facility” has the meaning stated in § 6-101 of this article.</text> </level> <level label="i"> <level label="1"> <text>“Railroad facility” includes any one or more or combination of:</text> <level label="i"> <text>Switches, spurs, tracks, structures, terminals, yards, real property, and other facilities useful or designed for use in connection with the transportation of persons or goods by rail; and</text> </level> <level label="ii"> <text>All other appurtenances, including locomotives, cars, vehicles, and other instrumentalities of shipment or carriage, useful or designed for use in connection with the transportation of persons or goods by rail.</text> </level> </level> <level label="2"> <text>“Railroad facility” does not include any transit facility.</text> </level> </level> <level label="j"> <text>“Refunding” means the retirement and cancellation of bonds, including bonds of prior issues, after their acquisition by or for the Department, whether before, at, or after maturity, either in exchange for other bonds or by payment, purchase, or redemption with the proceeds of the sale of other bonds.</text> </level> <level label="k"> <text>“Transit facility” includes any one or more or combination of tracks, rights-of-way, bridges, tunnels, subways, rolling stock, stations, terminals, ports, parking areas, equipment, fixtures, buildings, structures, other real or personal property, and services incidental to or useful or designed for use in connection with the rendering of transit service by any means, including rail, bus, motor vehicle, or other mode of transportation but does not include any railroad facility.</text> </level> <level label="l"> <text>“Transportation facility” includes any one or more or combination of:</text> <level label="1"> <text>Airport facilities;</text> </level> <level label="2"> <text>Highway facilities;</text> </level> <level label="3"> <text>Port facilities;</text> </level> <level label="4"> <text>Railroad facilities; and</text> </level> <level label="5"> <text>Transit facilities.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="3-102" title_number="3" title_name="Financing by Department" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>As to bonds of prior issues:</text> <level label="1"> <text>Every resolution, rule, regulation, form, order, and directive adopted by or relating to the former Maryland Port Authority or adopted by or relating to the State Roads Commission remains in effect until changed by the Department; and</text> </level> <level label="2"> <text>Every reference in this Code, any other law, ordinance, resolution, rule, regulation, order, directive, legal action, contract, or any other document to the Maryland Port Authority or the State Roads Commission means the Department.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-103" title_number="3" title_name="Financing by Department" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Bonds” means bonds, notes, or other evidences of obligation issued by the Department, including both consolidated transportation bonds and county transportation bonds.</text> </level> <level label="3"> <text>“Code” means the Internal Revenue Code and includes regulations and rulings issued under that Code.</text> </level> <level label="4"> <text>“Proceeds” means moneys received from the sale of the Department’s bonds, and includes any moneys deemed to be proceeds of the Department’s bonds under the Code.</text> </level> </level> <level label="b"> <text>The Secretary, the Treasurer, and the Comptroller shall establish and maintain funds and accounts for the administration, management, investment, and accounting of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate from time to time to comply with the Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on the Department’s bonds.</text> </level> <level label="c"> <level label="1"> <text>The Secretary and the Treasurer shall manage and invest proceeds, including any investment earnings on proceeds, in a manner so as to maintain the exclusion from gross income for federal income tax purposes of interest on the Department’s bonds.</text> </level> <level label="2"> <text>The Secretary and the Treasurer shall restrict the yields on investments of proceeds if and to the extent necessary to maintain the exclusion from gross income for federal income tax purposes of interest on the Department’s bonds.</text> </level> </level> <level label="d"> <text>The Secretary, the Treasurer, and the Comptroller shall prepare and maintain records of the receipt, deposit, investment, management, disbursement, and application of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate from time to time to comply with the Code and to maintain or verify the exclusion from gross income for federal income tax purposes of interest on the Department’s bonds.</text> </level> <level label="e"> <level label="1"> <text>The Secretary, the Treasurer, and the Comptroller shall establish a separate rebate fund to be used to make any payments to the United States with respect to investment earnings on proceeds that may be required from time to time by the Code.</text> </level> <level label="2"> <text>There may be separate accounts within the rebate fund.</text> </level> <level label="3"> <text>Amounts deposited to the rebate fund shall be used only for the purpose of making rebate payments to the United States.</text> </level> <level label="4"> <text>The Secretary, the Treasurer, and the Comptroller shall make payments from the rebate fund as may be required from time to time in order to comply with the Code and to maintain the exclusion from gross income for federal income tax purposes of interest on the Department’s bonds.</text> </level> <level label="5"> <text>Any excess moneys held in the rebate fund with respect to an issue of the Department’s bonds after all required rebate payments for that issue have been made, as certified by the Secretary and the Treasurer, shall be applied in compliance with the Code.</text> </level> </level> <level label="f"> <text>The Secretary, the Treasurer, and the Comptroller shall prepare and file from time to time with the appropriate agency of the United States any forms, information, and reports with respect to the Department’s bonds and the expenditure and investment of proceeds that may be required under the Code.</text> </level> <level label="g"> <text>As necessary or appropriate from time to time to comply with the Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on the Department’s bonds, the Secretary, the Treasurer, and the Comptroller shall each:</text> <level label="1"> <text>Take any other or further actions;</text> </level> <level label="2"> <text>Enter into any agreement or covenant regarding the use of proceeds, including any investment earnings on proceeds, the deposit of moneys to the rebate fund and the making of rebate payments; and</text> </level> <level label="3"> <text>Provide certifications of facts and estimates.</text> </level> </level> <level label="h"> <text>This section does not prevent the Board of Public Works and the Department from authorizing the issuance and sale of the Department’s bonds the interest on which is not excludable from gross income for federal income tax purposes.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-104" title_number="3" title_name="Financing by Department" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Credit instrument” means a letter of credit, bond insurance policy, guaranty, line of credit, surety bond, or similar agreement or commitment securing an issue of consolidated transportation bonds or county transportation bonds.</text> </level> <level label="3"> <text>“Credit instrument provider” means an issuer of a credit instrument the unsecured indebtedness of which, or indebtedness insured by which, is rated on the date of issuance of the credit instrument by a nationally recognized rating agency in 1 of its 2 highest rating categories.</text> </level> <level label="4"> <text>“Maximum annual debt service” means, as of any particular date of computation:</text> <level label="i"> <text>With respect to an issue of consolidated transportation bonds, the greatest amount required in the then current or any future calendar year to pay the principal of and interest on the bonds of that issue; and</text> </level> <level label="ii"> <text>With respect to an issue of county transportation bonds, the greatest amount required in the then current or any future fiscal year to pay the principal of and interest on the bonds of that issue.</text> </level> </level> </level> <level label="b"> <text>With respect to an issue of consolidated transportation bonds sold after June 1, 1989, the Secretary may provide in the resolution authorizing the issuance of the bonds that there shall be deposited in the sinking fund maintained under § 3–215(c) of this title only the amounts of the proceeds of the taxes levied and imposed under § 3–215 of this title that may be required from time to time to pay the principal of and interest on the bonds, as and when due, and that holders of bonds of that issue shall have no right to receive payment from any other amounts deposited or maintained in the sinking fund. The Secretary may, at his discretion, determine that:</text> <level label="1"> <text>There shall be deposited with or held for the paying agent for the bonds a credit instrument under which the credit instrument provider is obligated to pay an amount at least equal to the maximum annual debt service on the bonds of that issue; or</text> </level> <level label="2"> <text>The bonds shall be issued without a credit instrument if, in the Secretary’s judgment, the absence of a credit instrument will not adversely affect the credit rating of the bonds.</text> </level> </level> <level label="c"> <text>With respect to an issue of county transportation bonds sold after June 1, 1989, the Secretary may provide in the resolution authorizing the issuance of the bonds that there shall be withheld and deposited in the sinking fund maintained under § 3–307(b) of this title from funds allocable to the county under Title 8, Subtitle 4 of this article only the amounts that may be required from time to time to pay debt service on the bonds, as and when due, and that holders of bonds of that issue shall have no right to receive payment from any other amounts deposited or maintained in the sinking fund. The Secretary may, at his discretion, determine that:</text> <level label="1"> <text>There shall be deposited with or held for the paying agent for the bonds a credit instrument under which the credit instrument provider is obligated to pay an amount at least equal to the maximum annual debt service on the bonds of that issue; or</text> </level> <level label="2"> <text>The bonds shall be issued without a credit instrument if, in the Secretary’s judgment, the absence of a credit instrument will not adversely affect the credit rating of the bonds.</text> </level> </level> <level label="d"> <text>The sinking fund requirements established for consolidated transportation bonds and county transportation bonds sold before June 1, 1989 shall remain unchanged so long as those bonds are outstanding and unpaid as if this section had not been enacted.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-201" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <text>By one or more resolutions of the Secretary, the Department may:</text> <level label="1"> <text>Finance the cost of transportation facilities;</text> </level> <level label="2"> <text>Borrow money from time to time for that purpose; and</text> </level> <level label="3"> <text>Evidence the borrowing by the issuance and sale of bonds, notes, or other evidences of obligation on the terms, conditions, and limitations contained in this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-202" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <level label="a"> <text>The Department from time to time may issue its bonds on behalf of this State to finance the cost of any one or more or combination of transportation facilities.</text> </level> <level label="b"> <text>The bonds shall be known as “consolidated transportation bonds” and may be issued in any amount as long as the aggregate outstanding and unpaid principal balance of these bonds and bonds of prior issues does not exceed at any one time the sum of $5,000,000,000.</text> </level> <level label="c"> <text>The preferred method of issuance of the Department’s consolidated transportation bonds is by a public, competitive sale.</text> </level> <level label="d"> <text>The Department may issue its consolidated transportation bonds at a private, negotiated sale provided that:</text> <level label="1"> <text>The Secretary determines that extraordinary credit market conditions exist that warrant the use of this method rather than a public, competitive sale; and</text> </level> <level label="2"> <text>The Secretary determines that the terms and conditions, including price, interest rates, and payment dates, that can be achieved by a private negotiated sale are more advantageous to the State.</text> </level> </level> <level label="e"> <text>The maximum outstanding and unpaid principal balance of consolidated transportation bonds and bonds of prior issues as of June 30 for the next fiscal year:</text> <level label="1"> <text>Shall be established each year by the General Assembly in the State budget; and</text> </level> <level label="2"> <text>May not exceed the limit established in subsection (b) of this section.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="3-203" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <level label="a"> <text>The resolution authorizing the issuance of consolidated transportation bonds shall:</text> <level label="1"> <text>Describe generally the transportation facilities the cost of which is proposed to be financed by the sale of bonds;</text> </level> <level label="2"> <text>State the estimated cost of financing these facilities; and</text> </level> <level label="3"> <text>Determine and specify:</text> <level label="i"> <text>The date or dates of issue;</text> </level> <level label="ii"> <text>The date or dates and amount or amounts of maturities, which need not be in equal principal amounts or consecutive annual installments;</text> </level> <level label="iii"> <text>The rate or rates of interest payable on the bonds, or the manner of determining the rate or rates of interest, and the date or dates of payment of interest;</text> </level> <level label="iv"> <text>The tenor, form or forms, denomination or denominations, manner of execution, and place or places of payment of the principal of and interest on the bonds, which may be at any bank or trust company within or without this State;</text> </level> <level label="v"> <text>Whether the bonds are to be issued in coupon or registered form or both and whether provision is to be made for the registration of the principal only of coupon bonds, for the reconversion of fully registered bonds into coupon form, and for the replacement of bonds that are mutilated, lost, or destroyed;</text> </level> <level label="vi"> <text>Whether the bonds are to be sold at a public, competitive sale or a private, negotiated sale, as determined by the Secretary;</text> </level> <level label="vii"> <text>If the bonds are to be sold at a public sale, the form of notice of sale, which shall outline the terms and conditions of the sale;</text> </level> <level label="viii"> <text>The form of advertisement, which shall be published at least once in a journal having a circulation among banks and investment bankers, the publication of which shall be made not less than 10 days before the sale of bonds;</text> </level> <level label="ix"> <text>Whether all or any part of the bonds are redeemable before maturity and, if so, the terms, conditions, and prices of redemption; and</text> </level> <level label="x"> <text>Any other matter relating to the form, terms, conditions, issuance, sale, and delivery of the bonds.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The resolution may provide that the Secretary may postpone the time for receipt of proposals for the bonds without republishing the form of advertisement for the bonds.</text> </level> <level label="2"> <level label="i"> <text>The Secretary shall provide notice of the new date and time of sale not less than 24 hours prior to the time proposals are to be submitted, which date may not be more than 30 days after the originally scheduled date of sale.</text> </level> <level label="ii"> <text>The notice may be given by Munifacts News Service or a similar service or such other method as the Secretary deems appropriate.</text> </level> </level> </level> </section> <section article="gtr" article_name="Transportation" number="3-204" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <level label="a"> <level label="1"> <text>Consolidated transportation bonds shall be executed on behalf of the Department by the manual or facsimile signature of the Secretary.</text> </level> <level label="2"> <text>Other signatures on the bonds may be either manual or facsimile.</text> </level> </level> <level label="b"> <text>If an individual whose manual or facsimile signature appears on any consolidated transportation bond or coupon ceases to serve in an authorized capacity before the delivery of the bond, the signature nevertheless is as valid and sufficient for all purposes as if the individual had remained in that capacity until delivery of the bond.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-205" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <text>Notwithstanding any other provision of law or any recitals in the instruments, the bonds, notes, and other evidences of obligation issued under this subtitle are investment securities under the laws of this State.</text> </section> <section article="gtr" article_name="Transportation" number="3-206" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <text>The bonds, notes, and other evidences of obligation issued under this subtitle and their issuance and sale are exempt from the provisions of §§ 8-206 and 8-208 of the State Finance and Procurement Article.</text> </section> <section article="gtr" article_name="Transportation" number="3-207" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <text>Each issue of consolidated transportation bonds shall be approved before sale by resolution of the Board of Public Works.</text> </section> <section article="gtr" article_name="Transportation" number="3-208" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <level label="a"> <text>The Department from time to time may issue its refunding bonds for refunding any consolidated transportation bonds or bonds of prior issues.</text> </level> <level label="b"> <text>The powers granted and limitations imposed in this subtitle as to the issuance of consolidated transportation bonds also apply to the issuance of refunding bonds.</text> </level> <level label="c"> <text>The State Treasurer shall segregate and set apart the proceeds of the sale of any refunding bonds in a separate trust fund to be used only to pay the purchase or redemption prices of the bonds to be refunded.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-209" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <text>Before the preparation of definitive bonds, the Department may issue its interim certificates or temporary bonds, with or without coupons, exchangeable for definitive bonds when the definitive bonds have been executed and are available for delivery.</text> </section> <section article="gtr" article_name="Transportation" number="3-210" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <level label="a"> <text>The Department may issue its bond anticipation notes, payable to the bearer or registered holder of the notes out of the first proceeds of the next sale of consolidated transportation bonds.</text> </level> <level label="b"> <text>The resolution authorizing the issuance of bond anticipation notes may provide for the issuance of these notes in series, as funds are required, and for the renewal of these notes at maturity, with or without resale.</text> </level> <level label="c"> <text>The issuance of bond anticipation notes, the details of their issuance, the rights of their holders, and the rights, duties, and obligations of the Department with respect to them are governed by the provisions of this subtitle relating to the issuance of the bonds in anticipation of the sale of which the notes are issued, insofar as those provisions may be applicable.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-211" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <level label="a"> <text>With the approval of the Board of Public Works, the Department may borrow money in anticipation of its receipt of current revenues and evidence the borrowing by issuing its revenue anticipation notes.</text> </level> <level label="b"> <text>The revenue anticipation notes shall be payable, as to both principal and interest, only from current revenues when received and deposited in the Transportation Trust Fund, subject to the prior use and application of the revenues to meet the debt service on all outstanding and unpaid bonds payable from the revenues in the Transportation Trust Fund and to pay all funds due to the political subdivisions of this State.</text> </level> <level label="c"> <text>The procedure for the issuance of revenue anticipation notes is the same as that applicable to the issuance of consolidated transportation bonds, except that these notes may be issued and sold by private negotiation.</text> </level> <level label="d"> <text>A revenue anticipation note may not be issued to mature later than 6 months after the date of its issue.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-212" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <text>The bonds, notes, and other evidences of obligation issued under this subtitle, their transfer, the interest payable on them, and any income derived from them, including any profit realized in their sale or exchange, shall be exempt at all times from every kind and nature of taxation by this State or by any of its political subdivisions, municipal corporations, or public agencies of any kind.</text> </section> <section article="gtr" article_name="Transportation" number="3-213" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <text>The bonds, notes, and other evidences of obligation issued under this subtitle are not and may not be considered to constitute a debt or a pledge of the faith and credit of the State of Maryland, but shall be payable, as to both principal and interest, only from the proceeds of the tax and other revenues levied, imposed, pledged, or made available for that purpose.</text> </section> <section article="gtr" article_name="Transportation" number="3-214" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <text>The State of Maryland covenants with the holders of all consolidated transportation bonds that the power of the Department to issue or sell general or special obligation bonds, notes, or other evidences of obligation under Articles 62B and 89B of the Code of 1957 has terminated.</text> </section> <section article="gtr" article_name="Transportation" number="3-215" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <level label="a"> <level label="1"> <text>For the purpose of paying the principal of and interest on consolidated transportation bonds as they become due and payable, there is hereby levied and imposed an annual tax that consists of the taxes specified in this section and, to the extent necessary and except as otherwise provided in this subsection, that shall be used and applied exclusively for that purpose.</text> </level> <level label="2"> <text>The required use and application of the tax under paragraph (1) of this subsection is subject only to the prior use and application of one or all or any combination of the taxes specified in this section to meet the debt service on all of the following bonds while they are outstanding and unpaid and to the payment of which any part of those taxes has been pledged:</text> <level label="i"> <text>Bonds of prior issues; and</text> </level> <level label="ii"> <text>Bonds of any series of county transportation bonds issued under Subtitle 3 of this title.</text> </level> </level> </level> <level label="b"> <text>The tax levied and imposed by this section consists of that part of the following taxes that are retained to the credit of the Department after distributions to the political subdivisions:</text> <level label="1"> <text>The motor fuel tax revenue distributed under §§ 2–1103(2), 2–1103(3), and 2–1104(a)(3) of the Tax – General Article;</text> </level> <level label="2"> <text>The motor fuel tax revenue attributable to the sales and use tax equivalent rate imposed under § 9–306 of the Tax – General Article and distributed under § 2–1103(4) of the Tax – General Article;</text> </level> <level label="3"> <text>The income tax revenue distributed under § 2–614 of the Tax – General Article;</text> </level> <level label="4"> <text>The excise tax imposed on vehicles by Part II of Title 13, Subtitle 8 of this article;</text> </level> <level label="5"> <text>The sales and use tax revenues distributed under § 2–1302.1 of the Tax – General Article; and</text> </level> <level label="6"> <text>The transportation network company impact fee revenues allocated under § 3–216(d)(5)(i)1 of this subtitle.</text> </level> </level> <level label="c"> <text>As long as any consolidated transportation bonds are outstanding and unpaid, and except as provided in § 3–104 of this title, there shall be deposited and maintained in a sinking fund to be maintained by the State Treasurer to secure the payment of the principal of and interest on the bonds, annually or more often, as received, so much of the proceeds of the tax levied and imposed under this section, together with all other funds received by the Department and credited to the Transportation Trust Fund, as are necessary to maintain in the sinking fund a sum equal to the amount required to pay the principal of and interest on the outstanding and unpaid bonds that will become due and payable in the current calendar year and the next succeeding calendar year.</text> </level> <level label="d"> <text>The tax levied and imposed by this section is irrevocably pledged to the payment of the principal of and interest on consolidated transportation bonds as they become due and payable, and no part of the tax or other funds applicable to debt service on the bonds may be repealed, diminished, or applied to any other purpose until:</text> <level label="1"> <text>The bonds and the interest on them have become due and fully paid; or</text> </level> <level label="2"> <text>Adequate and complete provision for payment of the principal and interest has been made.</text> </level> </level> <level label="e"> <level label="1"> <text>In this subsection “government obligations” means direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America.</text> </level> <level label="2"> <text>Adequate and complete provision for payment of the principal and interest of any issue or series of consolidated transportation bonds may be made by the Secretary and the State Treasurer by making a transfer of government obligations from the Transportation Trust Fund to the State Treasurer or to a bank or trust company as escrow fund agent in an amount which, together with the income due thereon, will be sufficient to pay in full when due the maturing principal of and interest on the consolidated transportation bonds.</text> </level> <level label="3"> <text>To the extent that adequate and complete provision has been made for the payment of consolidated transportation bonds under this title those bonds shall no longer be deemed to be outstanding and unpaid under this title.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="3-216" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <level label="a"> <text>There is a Transportation Trust Fund for the Department.</text> </level> <level label="b"> <text>Except as otherwise expressly provided by statute, there shall be credited to the Transportation Trust Fund for the account of the Department all taxes, fees, charges, and revenues collected or received by or paid, appropriated, or credited to the account of the Department or any of its units in the exercise of their rights, powers, duties, or obligations, including the cash proceeds of the sale of consolidated transportation bonds, notes, or other evidences of obligation issued by the Department, any General Fund appropriations, and the proceeds of any State loan or federal grant made for transportation purposes.</text> </level> <level label="c"> <level label="1"> <text>There shall be maintained in the Transportation Trust Fund one or more sinking fund accounts to which shall be credited and from which shall be paid, from the proceeds of the taxes levied and imposed for that purpose or from any other funds of the Department, amounts sufficient at all times to meet the debt service on all bonds of prior issues and consolidated transportation bonds from time to time outstanding and unpaid.</text> </level> <level label="2"> <level label="i"> <text>The Gasoline and Motor Vehicle Revenue Account, the Motorcycle Safety Program Account, and the Transportation Network Company Impact Fee Account shall be maintained in the Transportation Trust Fund.</text> </level> <level label="ii"> <text>In each fiscal year, the Department shall budget from federal funds available to the Department, other funds in the Transportation Trust Fund, and any other funds available to the Department, an amount sufficient to fund projects and programs determined by the Secretary to be necessary to achieve the bicycle and pedestrian transportation goals identified for the fiscal year under Title 2, Subtitle 6 of this article.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>After meeting its debt service requirements, the Department may use the funds in the Transportation Trust Fund for any lawful purpose related to the exercise of its rights, powers, duties, and obligations.</text> </level> <level label="2"> <text>Expenditures under this subsection shall be made in accordance with any appropriation provided for in any applicable budget bill or supplementary appropriation bill. However, an appropriation proposed to be made to any unit in the Department or proposed to be made for any designated transportation activity, function, or undertaking that has been reduced by the General Assembly may not be restored, for the same purpose as originally proposed, except in an emergency, by the budget amendment procedure of § 7–209 of the State Finance and Procurement Article, or otherwise if the General Assembly in striking or reducing the appropriation, prohibited its restoration. However, except for emergency capital projects, if the General Assembly explicitly reduces in the budget bill an appropriation proposed for a major capital project as defined in § 2–103.1(a)(4) of this article, the appropriation may not be restored for the same purpose as originally proposed by the budget amendment procedure of § 7–209 of the State Finance and Procurement Article or otherwise unless the General Assembly, in striking or reducing the appropriation, expressly authorized its restoration.</text> </level> <level label="3"> <text>For each fiscal year, the Department shall use the funds in the Transportation Trust Fund for the purposes specified in subsection (c)(2)(ii) of this section, which may include construction and maintenance of:</text> <level label="i"> <text>Public bicycle areas as defined in § 21–101(o) of this article;</text> </level> <level label="ii"> <text>Bicycle ways as defined in § 21–101(d) of this article; and</text> </level> <level label="iii"> <text>Sidewalks as defined in § 21–101(w) of this article.</text> </level> </level> <level label="4"> <text>Each year, before the General Assembly considers the proposed Maryland Transportation Plan and the Consolidated Transportation Program, the Department shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on:</text> <level label="i"> <text>The expenditures made toward the attainment of the bicycle and pedestrian transportation goals during the preceding fiscal year under Title 2, Subtitle 6 of this article; and</text> </level> <level label="ii"> <text>The progress made toward attainment of the bicycle and pedestrian transportation goals identified for the fiscal year under Title 2, Subtitle 6 of this article.</text> </level> </level> <level label="5"> <level label="i"> <text>The Department shall allocate the funds in the Transportation Network Company Impact Fee Account for the following purposes, in the manner the Department determines is appropriate:</text> <level label="1"> <text>Capital needs identified in the assessment conducted under § 7–309 of this article; and</text> </level> <level label="2"> <text>Distribution to counties and municipalities for the purposes specified in § 8–408 of this article.</text> </level> </level> <level label="ii"> <text>If any funds remain in the Transportation Network Company Impact Fee Account after the allocations under subparagraph (i) of this paragraph, the Department shall allocate the remaining fund balance to the Locally Operated Transit System Grant Program under § 4–322 of this article.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Except as otherwise provided in this subsection, this section is effective notwithstanding any other provision of law.</text> </level> <level label="2"> <text>Nothing in this section may adversely affect in any way the security of any of the following bonds while they are outstanding and unpaid:</text> <level label="i"> <text>State highway construction bonds, second issue;</text> </level> <level label="ii"> <text>State highway construction bonds, third issue;</text> </level> <level label="iii"> <text>County highway construction bonds; or</text> </level> <level label="iv"> <text>County highway construction bonds, second issue.</text> </level> </level> <level label="3"> <text>It is the intent of the General Assembly that, as long as any of the bonds listed in paragraph (2) of this subsection are outstanding and unpaid:</text> <level label="i"> <text>The sinking fund requirements established for the payment of the principal of and interest on those bonds shall remain unchanged, as if this section had not been enacted; and</text> </level> <level label="ii"> <text>The taxes and revenues pledged to the payment of the principal of and interest on those bonds as they become due and payable may not be repealed, diminished, or applied to any other purpose until:</text> <level label="1"> <text>The bonds and the interest on them have become due and fully paid; or</text> </level> <level label="2"> <text>Adequate and complete provision for payment of the principal and interest has been made.</text> </level> </level> </level> </level> <level label="f"> <level label="1"> <text>Except as provided in paragraphs (3) and (6) of this subsection, no part of the Transportation Trust Fund may be transferred or diverted to the General Fund of the State unless approved by the General Assembly through legislation passed by a three–fifths majority vote of the full standing committee assigned the legislation in each of the two Houses of the General Assembly and enacted into law.</text> </level> <level label="2"> <text>Except as provided in paragraphs (3) and (6) of this subsection, no part of the Transportation Trust Fund may be transferred or diverted to a special fund of the State, unless approved by the General Assembly through legislation passed by a three–fifths majority vote of the full standing committee assigned the legislation in each of the two Houses of the General Assembly and enacted into law. No part of the Transportation Trust Fund may be transferred or diverted to a special fund of the State pursuant to the provisions of § 7–209(e)(2) of the State Finance and Procurement Article, unless the requirements of this paragraph have been satisfied.</text> </level> <level label="3"> <text>Funds in the Transportation Trust Fund may be used for defense or relief purposes only if:</text> <level label="i"> <text>The State is invaded by land, sea, or air or a major catastrophe occurs; and</text> </level> <level label="ii"> <text>The Governor:</text> <level label="1"> <text>Proclaims a State of Emergency; and</text> </level> <level label="2"> <text>Declares that the use of the funds for defense or relief purposes is necessary for the immediate preservation of the public health or safety.</text> </level> </level> </level> <level label="4"> <text>Before the enactment of legislation under paragraph (1) or (2) of this subsection or the issuance of an emergency declaration under paragraph (3) of this subsection to transfer or divert funds from the Transportation Trust Fund to the General Fund or a special fund, the Treasurer shall advise the Governor and the General Assembly of the potential impact of the transfer or diversion on the credit rating of bonds or other debt instruments issued by the Department.</text> </level> <level label="5"> <level label="i"> <text>Before the enactment of legislation under paragraph (1) or (2) of this subsection or the issuance of an emergency declaration under paragraph (3) of this subsection to transfer or divert funds from the Transportation Trust Fund to the General Fund or a special fund, a determination shall be made of the potential impact of the transfer or diversion on the additional bonds test set forth in the Secretary’s resolution and the credit rating of bonds or other debt instruments issued by the Department.</text> </level> <level label="ii"> <text>A transfer or diversion may not occur if it is determined that the transfer or diversion would:</text> <level label="1"> <text>Cause the Department to fail the additional bonds test; or</text> </level> <level label="2"> <text>Result in a downgrade of the Department’s bonds.</text> </level> </level> </level> <level label="6"> <text>This subsection does not apply to a distribution of highway user revenues to counties, municipalities, and Baltimore City under § 8–403 of this article.</text> </level> </level> <level label="g"> <level label="1"> <text>This subsection applies only to a bill or an amendment that would:</text> <level label="i"> <text>Reduce any tax or fee that otherwise would be credited to the Transportation Trust Fund; or</text> </level> <level label="ii"> <text>Increase transportation aid to local governments by using funds from the Transportation Trust Fund.</text> </level> </level> <level label="2"> <text>When submitting a proposed bill or amendment for introduction in the General Assembly on behalf of the Administration, an executive department, or any other unit of State government, the Governor shall provide to the General Assembly, in accordance with § 2–1257 of the State Government Article, a detailed analysis of the effect the proposed bill or amendment will have on the Transportation Trust Fund and the funding of projects specified in the Consolidated Transportation Program, including an analysis of whether the reduction of available funds will result in the elimination of any project or the alteration of the scope, design, or scheduling of any project.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="3-217" title_number="3" title_name="Financing by Department" subtitle_number="2" subtitle_name="Consolidated Transportation Bonds"> <level label="a"> <text>Any funds in the Transportation Trust Fund transferred or diverted from that Fund to the General Fund or a special fund shall be repaid within 5 years after the transfer or diversion as follows:</text> <level label="1"> <text>At least 10 percent of a transfer or diversion in a fiscal year shall be repaid in the first fiscal year after the transfer or diversion;</text> </level> <level label="2"> <text>A cumulative total of at least 30 percent of a transfer or diversion in a fiscal year shall be repaid within 2 fiscal years after the transfer or diversion;</text> </level> <level label="3"> <text>A cumulative total of at least 55 percent of a transfer or diversion in a fiscal year shall be repaid within 3 fiscal years after the transfer or diversion;</text> </level> <level label="4"> <text>A cumulative total of at least 80 percent of a transfer or diversion in a fiscal year shall be repaid within 4 fiscal years after the transfer or diversion; and</text> </level> <level label="5"> <text>A cumulative total of 100 percent of a transfer or diversion in a fiscal year shall be repaid within 5 fiscal years after the transfer or diversion.</text> </level> </level> <level label="b"> <text>This section does not apply to a distribution of highway user revenues to counties, municipalities, and Baltimore City under § 8–403 of this article.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-301" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Bonds” means bonds issued under this subtitle.</text> </level> <level label="c"> <text>“Highway user revenues” has the meaning stated in § 8-401 of this article.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-302" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <text>The purposes of this subtitle are to enable the counties of this State to:</text> <level label="1"> <text>Accelerate programs of road construction and reconstruction;</text> </level> <level label="2"> <text>Provide local participating funds for federally aided transportation projects;</text> </level> <level label="3"> <text>Make major road repairs as necessary to eliminate damage caused to county roads by severe and unforeseen weather conditions; and</text> </level> <level label="4"> <text>Generally finance the capital cost of transportation facilities.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-303" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <level label="a"> <text>Subject to the limitations of this subtitle, the Department from time to time may:</text> <level label="1"> <text>Borrow money and evidence the borrowing by the issuance and sale of its bonds in substantially the form and manner and subject to the same general provisions and tax exemption applicable to consolidated transportation bonds under §§ 3-203 through 3-207, 3-212, and 3-213 of this title;</text> </level> <level label="2"> <text>Disburse the proceeds of the borrowing pursuant to agreements with participating counties; and</text> </level> <level label="3"> <text>Pay the principal of and interest on the bonds.</text> </level> </level> <level label="b"> <text>The bonds shall be known as “Department of Transportation -- County Transportation Bonds -- First Issue”.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-304" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <level label="a"> <text>Subject to the provisions of § 3-307 of this subtitle, any county in this State may participate in the proceeds of the sale of bonds issued under this subtitle.</text> </level> <level label="b"> <text>On the date designated by the Department, a county that desires to participate shall notify the Department of:</text> <level label="1"> <text>Its desire to participate in the proceeds of the next series of bonds to be issued by the Department; and</text> </level> <level label="2"> <text>The proposed amount of its participation.</text> </level> </level> <level label="c"> <text>The Department may extend the date for notification when appropriate.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-305" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <level label="a"> <text>After notification by the county, the Department shall determine the total proceeds of the highway user revenues allocable to the county under Title 8, Subtitle 4 of this article, exclusive of any amounts distributed to any municipalities in the county.</text> </level> <level label="b"> <text>The Department next shall determine the total amount of bonds that it could issue under this subtitle on behalf of the county, with adequate annual debt service coverage, from the annual amount of the highway user revenues so allocated to the county after providing for the debt service on all outstanding and unpaid bonds that have been previously issued on behalf of the county and to which its share of the highway user revenues has been pledged.</text> </level> <level label="c"> <text>After making all necessary determinations, the Department shall notify the county of the amount of bonds of the next series that the Department will issue on behalf of the county. The Department then shall issue and sell that amount of its bonds under this subtitle as a part of the next series of bonds and shall disburse the net proceeds of that amount of the bonds pursuant to an agreement with the county, after deducting the county’s proportionate share of the cost of the issuance of the bonds.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-306" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <level label="a"> <text>The Department may not issue bonds on behalf of a county if the county’s share of highway user revenues for the latest fiscal year is less than twice its annual debt service on county highway construction bonds and county transportation bonds.</text> </level> <level label="b"> <text>Subject to annual recomputation, the maximum amount of the bonds that the Department may issue on behalf of a county, as computed under this section and § 3-304 of this subtitle, is the limit of participation for the county.</text> </level> <level label="c"> <text>In its discretion, the Department may limit the participation of any county in any series of bonds. In determining the amount of participation of a county, the Department shall consider the highway maintenance and other transportation needs of the county and any other factors that the Department considers appropriate.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-307" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <level label="a"> <text>Before it sells any bonds, the Department and the county shall enter into an agreement as required by this section.</text> </level> <level label="b"> <text>The agreement shall specify that:</text> <level label="1"> <text>The bonds to be issued on behalf of the county will be repaid, with interest, within 15 years after their date of issue;</text> </level> <level label="2"> <text>Each issue of bonds on behalf of the county shall be approved by resolution of the Board of Public Works before they are issued;</text> </level> <level label="3"> <text>Unless the county elects to deposit the amount with the State Comptroller under item (4) of this subsection, and except as provided in § 3-104 of this title, the State Comptroller may withhold and deposit money to the credit of a sinking fund maintained to pay the principal of and interest on the bonds from funds allocable to the county under Title 8, Subtitle 4 of this article, after first providing for sinking fund requirements on outstanding and unpaid county highway construction bonds issued pursuant to Chapter 657 of the Laws of 1953, until an amount equal to the debt service payable in the current fiscal year and the next succeeding fiscal year is accumulated and, thereafter, an amount equal to debt service on the bonds in the succeeding fiscal year, but no part of the funds that have been previously pledged for debt service on outstanding and unpaid bonds of the county, as provided in Title 8, Subtitle 4, may be withheld;</text> </level> <level label="4"> <text>In any year in which any bonds covered by the agreement are outstanding and unpaid, the county may make an annual levy on its taxable basis in the rate and amount sufficient to provide a sum equal to the amount to be withheld by the State Comptroller, as provided in item (3) of this subsection, in which event the State Comptroller may not withhold any more of the highway user revenues of the county than necessary to assure payment of the principal of and interest on the bonds in the current fiscal year and the next succeeding fiscal year;</text> </level> <level label="5"> <text>At regular intervals, the State Comptroller shall pay from the sinking fund to the Department amounts sufficient to pay the principal of and interest on the bonds; and</text> </level> <level label="6"> <text>The county shall use and invest its share of the proceeds of the bonds within the parameters established by the Department and take, or refrain from taking, such other and further actions as may be required of it by the Department to maintain the exemption from federal income taxation of interest on the bonds.</text> </level> </level> <level label="c"> <text>If a county violates its agreement with the Department in a manner that causes the bonds to lose their tax-exempt status, the Department may prohibit the county from participating in the Department’s county bond program for 3 years from the date the violation is discovered.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-308" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <text>In any fiscal year, if the county fails to levy the tax authorized in its agreement with the Department and if the county’s share of highway user revenues is insufficient to meet the debt service on bonds in that year, the State Comptroller, notwithstanding the provisions of Title 8, Subtitle 4 of this article on the distribution of highway user revenues, may withhold from the share of highway user revenues payable to municipalities in the county an amount sufficient to pay the debt service on the bonds in that year.</text> </section> <section article="gtr" article_name="Transportation" number="3-309" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <text>Bonds issued under this subtitle are the obligations of the Department and may not be considered to constitute a debt of the county for the purpose of determining its debt limitations.</text> </section> <section article="gtr" article_name="Transportation" number="3-310" title_number="3" title_name="Financing by Department" subtitle_number="3" subtitle_name="County Transportation Bonds"> <level label="a"> <text>In this section, “government obligations” means direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America.</text> </level> <level label="b"> <text>Adequate and complete provision for payment of the principal and interest of any issue or series of county transportation bonds may be made by the Secretary and the State Treasurer by making a transfer of government obligations from the Transportation Trust Fund to the State Treasurer or to a bank or trust company as escrow fund agent in an amount which, together with the income due thereon, will be sufficient to pay in full when due the maturing principal of and interest on the county transportation bonds.</text> </level> <level label="c"> <text>To the extent that adequate and complete provision has been made for the payment of county transportation bonds under this title, those bonds shall no longer be deemed to be outstanding and unpaid under this title.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-501" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Bonds” means bonds issued under this subtitle and includes bonds, notes, or any other evidences of obligation.</text> </level> <level label="c"> <text>“Counties” means the counties of Maryland and includes the Mayor and City Council of Baltimore.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-502" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <text>The purpose of this subtitle is to authorize the Department and the counties to establish a financing program, as an alternative to Subtitle 3 of this title, that will enable the counties to finance the cost of transportation facilities without the issuance of State or departmental debt.</text> </section> <section article="gtr" article_name="Transportation" number="3-503" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>Subject to the limitations of this subtitle, the Department from time to time may:</text> <level label="1"> <text>Issue revenue bonds on behalf of and for the benefit of participating counties;</text> </level> <level label="2"> <text>Loan the proceeds of those bonds to the participating counties for use in paying the counties’ cost of transportation facilities; and</text> </level> <level label="3"> <text>Provide for the payment of the principal of and interest on the bonds solely from the revenues pledged for that purpose by the counties participating in an issue of bonds under this subtitle.</text> </level> </level> <level label="b"> <text>The bonds shall be known as “County Transportation Revenue Bonds”.</text> </level> <level label="c"> <text>Bonds issued under this subtitle are not “County Transportation Bonds” under Subtitle 3 of this title.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-504" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>A resolution authorizing the issuance of bonds under this subtitle shall determine and specify:</text> <level label="1"> <text>The date or dates of issue;</text> </level> <level label="2"> <text>The date or dates and amount or amounts of maturities, which need not be in equal principal amounts or consecutive annual installments, but a bond may not be issued to mature later than 30 years after the date of its issue;</text> </level> <level label="3"> <text>The rate or rates of interest payable on the bonds, or the manner of determining the rate or rates of interest, and the date or dates of payment of interest;</text> </level> <level label="4"> <text>The tenor, form or forms, denomination or denominations, manner of execution, and place or places of payment of the principal of and interest on the bonds, which may be by any bank or trust company within or without this State;</text> </level> <level label="5"> <text>Whether the bonds are to be issued in coupon, registered or book entry form and whether provision is to be made for the registration of the principal only of coupon bonds, for the reconversion of fully registered bonds into coupon form, and for the replacement of bonds that are mutilated, lost, or destroyed;</text> </level> <level label="6"> <text>Whether the bonds are to be sold at public or private sale, as determined by the Secretary;</text> </level> <level label="7"> <text>If the bonds are to be sold at public sale, the form of notice of sale, which shall outline the terms and conditions of the sale, and the form of advertisement of a summary notice of sale, which shall be published at least once in an appropriate newspaper of general circulation as determined by the Secretary;</text> </level> <level label="8"> <text>Whether all or any part of the bonds are redeemable before maturity and, if so, the terms, conditions, and prices of redemption; and</text> </level> <level label="9"> <text>Any other matter relating to the form, terms, conditions, issuance, sale, and delivery of the bonds.</text> </level> </level> <level label="b"> <level label="1"> <text>The resolution may provide that the Secretary may postpone the time for receipt of proposals for the bonds without republishing the form of advertisement for the bonds.</text> </level> <level label="2"> <level label="i"> <text>The Secretary shall provide notice of the new date and time of sale not less than 24 hours prior to the time proposals are to be submitted, which date may not be more than 30 days after the originally scheduled date of sale.</text> </level> <level label="ii"> <text>The notice may be given by Munifacts News Service or a similar service or such other method as the Secretary deems appropriate.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Bonds shall be executed by the manual or facsimile signature of the Secretary.</text> </level> <level label="2"> <text>Other signatures on the bonds may be either manual or facsimile.</text> </level> </level> <level label="d"> <text>If an individual whose manual or facsimile signature appears on any bond or coupon ceases to serve in an authorized capacity before the delivery of the bond, the signature nevertheless is as valid and sufficient for all purposes as if the individual had remained in that capacity until delivery of the bond.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-505" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <text>Notwithstanding any other provision of law or any recitals in the instruments, bonds issued under this subtitle are investment securities under the laws of this State.</text> </section> <section article="gtr" article_name="Transportation" number="3-506" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <text>Bonds issued under this subtitle and their issuance and sale are exempt from the provisions of §§ 8-206 and 8-208 of the State Finance and Procurement Article.</text> </section> <section article="gtr" article_name="Transportation" number="3-507" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <text>Before the preparation of definitive bonds, the Department may issue interim certificates or temporary bonds, with or without coupons, exchangeable for definitive bonds when the definitive bonds have been executed and are available for delivery.</text> </section> <section article="gtr" article_name="Transportation" number="3-508" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>The Department may issue bond anticipation notes under this subtitle, payable to the bearer or registered holder of the notes out of the first proceeds of the next sale of bonds.</text> </level> <level label="b"> <text>The resolution authorizing the issuance of bond anticipation notes may provide for the issuance of these notes in series, as funds are required, and for the renewal of these notes at maturity, with or without resale.</text> </level> <level label="c"> <text>The issuance of bond anticipation notes, the details of their issuance, the rights of their holders, and the rights, duties, and obligations of the Department with respect to them are governed by the provisions of this subtitle relating to the issuance of the bonds in anticipation of the sale of which the notes are issued, insofar as those provisions may be applicable.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-509" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <text>Bonds issued under this subtitle, their transfer, the interest payable on them, and any income derived from them, including any profit realized in their sale or exchange, shall be exempt at all times from every kind and nature of taxation by this State or by any of its political subdivisions, municipal corporations, or public agencies of any kind.</text> </section> <section article="gtr" article_name="Transportation" number="3-510" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>Bonds under this subtitle may be authorized by trust agreement between the Department and a corporate trustee, which may be any trust company, or bank having trust powers, within or without the State. Any such trust agreement shall describe the source or sources of revenue to be pledged to pay debt service on the bonds and may contain:</text> <level label="1"> <text>Subject to then existing agreements with bondholders or noteholders, provisions pledging or assigning all or any part of the revenues of the participating counties, mortgages or loans made by the participating counties or the security therefor, the proceeds of any bonds issued under this subtitle, or any combination of these and any other assets of the participating counties to secure payment of bonds;</text> </level> <level label="2"> <text>Provisions protecting and enforcing rights and remedies of bondholders, including restrictions on the rights of holders, and covenants setting forth duties of or restrictions on the Department and the participating counties;</text> </level> <level label="3"> <text>Provisions appointing one or more trust companies or banks with trust powers to act as depositaries of the proceeds of any bonds or notes. Any depositary bank or trust company incorporated in the State may furnish indemnifying bonds or pledge securities, as required by the Department;</text> </level> <level label="4"> <text>Provisions as to custody, safeguarding, application, and investment of funds credited pursuant to this subtitle;</text> </level> <level label="5"> <text>Provisions establishing and controlling all aspects of reserve funds, including debt service reserve funds;</text> </level> <level label="6"> <text>Provisions for the payment of debt service on bonds and refunding bonds, including redemption premiums and interest; or</text> </level> <level label="7"> <text>Any other provisions deemed reasonable and proper for the security of bondholders.</text> </level> </level> <level label="b"> <text>A trust agreement may provide that the bonds may be sold either at public or private sale and that the maturity of the bonds may not exceed 30 years after their date of issue.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-511" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <text>The Department may issue bonds under this subtitle:</text> <level label="1"> <text>Without obtaining the consent of any instrumentality, agency, or unit of this State; and</text> </level> <level label="2"> <text>Without any proceedings or the happening of any conditions or things other than those specifically required by this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-512" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>The bonds shall be payable solely from the revenues received by the Department from the participating counties for that purpose.</text> </level> <level label="b"> <text>The revenues of the State and the Department are not pledged, and may not be used, to pay the principal of or interest on the bonds.</text> </level> <level label="c"> <text>The Transportation Trust Fund established by § 3-216 of this title is not pledged, and may not be used, to pay the principal of or interest on the bonds.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-513" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>Bonds issued under this subtitle are not debt of the State or the Department.</text> </level> <level label="b"> <text>Bonds issued under this subtitle are not and may not be considered to constitute a debt or a pledge of the faith and credit of the State of Maryland or the Department.</text> </level> <level label="c"> <text>All bonds issued under this subtitle shall contain a statement on their face to the effect that:</text> <level label="1"> <text>Neither the State nor the Department is obligated to pay the principal of or the interest on them; and</text> </level> <level label="2"> <text>Neither the faith and credit nor the taxing power of the State or the Department is pledged to the payment of the principal of or the interest on them.</text> </level> </level> <level label="d"> <text>Bonds issued under this subtitle are obligations of the participating counties.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-514" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>Subject to § 3-515 of this subtitle, the Department may allow any county in this State to participate in an issue of bonds under this subtitle.</text> </level> <level label="b"> <text>On the date designated by the Department, a county that desires to participate shall notify the Department of:</text> <level label="1"> <text>Its desire to participate in the proceeds of the next series of bonds to be issued under this subtitle;</text> </level> <level label="2"> <text>The proposed amount of its participation; and</text> </level> <level label="3"> <text>A description of the revenues to be pledged by the county to pay debt service on the bonds.</text> </level> </level> <level label="c"> <text>The Department may extend the date for notification when appropriate.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-515" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>After notification by the county, the Department shall determine the total amount of bonds that it should issue under this subtitle on behalf of participating counties, giving consideration to the amount of revenues from each county available to pay debt service on the bonds.</text> </level> <level label="b"> <level label="1"> <text>After making all necessary determinations, the Department shall notify the counties of the amount of bonds of the next series that the Department will issue on behalf of the counties.</text> </level> <level label="2"> <text>The Department shall then issue and sell that amount of bonds under this subtitle as a part of the next series of bonds and shall disburse the net proceeds of that amount of the bonds pursuant to appropriate agreements with the participating counties, after deducting the counties’ proportionate share of the cost of the issuance of the bonds and the appropriate share of the Department’s costs of administering the program established under this subtitle which is attributable to each bond issue.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="3-516" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>Counties which can demonstrate an ability to pay their proportionate share of debt service on the bonds may participate in the program only after:</text> <level label="1"> <text>The county’s participation in the program has been approved by a local ordinance or resolution enacted after public notice and public hearings as required in accordance with State and local public laws, charters, or ordinances; and</text> </level> <level label="2"> <text>A list of projects which may be undertaken under the local program has been available for review by the public at the public hearing.</text> </level> </level> <level label="b"> <text>The obligations undertaken under this subtitle by participating counties, the borrowing which they represent, any pledge of the full faith and credit of the participating counties or any other guarantee of the participating counties, and the programs or projects being financed are subject to:</text> <level label="1"> <text>Any referendum requirements of the charter or other local law of the counties; and</text> </level> <level label="2"> <text>Any limitation of the charter or local law on the rate of taxation or the aggregate amount of taxes that may be levied within the counties.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="3-517" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>Before it sells any bonds under this subtitle, the Department shall enter into an agreement with each participating county as required by this section.</text> </level> <level label="b"> <text>The agreement shall:</text> <level label="1"> <text>Specify that the bonds to be issued on behalf of the county will be repaid by the county under such terms and conditions as the Department and the counties deem appropriate;</text> </level> <level label="2"> <text>Describe the source and nature of revenues the county will pledge to the repayment of the bonds, which revenues may include highway user revenues under § 8-401 of this article or any other revenues of the county; and</text> </level> <level label="3"> <text>Describe any other terms or conditions that the Department deems necessary or appropriate to assure prompt and full repayment of the bonds.</text> </level> </level> <level label="c"> <text>The Department may pledge or assign all or a portion of its rights under agreements made pursuant to this section to guarantee repayment of bonds.</text> </level> <level label="d"> <level label="1"> <text>In order to enhance the security or the marketability of the bonds, a county may agree with the Department to pledge any moneys that the county is entitled to receive from the county’s share of highway user revenues, but a county may not pledge moneys that are pledged or dedicated to another purpose by State law.</text> </level> <level label="2"> <text>In the event of such pledge, the State Comptroller and the State Treasurer may cause in accordance with the terms of such agreement such moneys to be paid to the Department or any trustee designated by the Department.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="3-518" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>Counties may borrow the proceeds of bonds issued under this subtitle and enter into agreements with the Department evidencing the counties’ obligation to repay such loans, pursuant to such terms and conditions as the Department and the counties deem appropriate.</text> </level> <level label="b"> <text>A county may enter into any agreement necessary or appropriate to allow it to participate in a bond issue under this subtitle.</text> </level> <level label="c"> <text>An agreement authorized by this subsection may have such provisions, terms, and conditions, and may be of such duration, as the county by ordinance or resolution may determine.</text> </level> <level label="d"> <text>Except as provided in subsection (f) of this section, any payment obligation in an agreement authorized by this section may be either:</text> <level label="1"> <text>A general obligation of the county to which its full faith and credit and unlimited taxing power is pledged and which may not be subject to annual appropriation by the county; or</text> </level> <level label="2"> <text>Any other obligation which the county is authorized to undertake.</text> </level> </level> <level label="e"> <text>A payment obligation in an agreement authorized by this section may be undertaken by a county pursuant to a public or private sale, with or without public bidding.</text> </level> <level label="f"> <text>If a State constitutional provision limits a county in undertaking a payment obligation described in this section or requires a county to comply with certain procedures prior to undertaking a payment obligation described in this section, the county may provide that the payment obligation:</text> <level label="1"> <text>Is a limited obligation of the county repayable from assets and revenues as provided in the agreement; or</text> </level> <level label="2"> <text>Is subject to annual appropriation by the county.</text> </level> </level> <level label="g"> <text>The obligations undertaken under this subtitle by participating counties, the borrowing which they represent, any pledge of the full faith and credit of the participating counties or any other guarantee of the participating counties, and the programs or projects being financed are not subject to any requirement of charter or local law as to the form or public sale of bonds or obligations of the counties.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-519" title_number="3" title_name="Financing by Department" subtitle_number="5" subtitle_name="County Transportation Revenue Bonds"> <level label="a"> <text>The Department may from time to time issue revenue refunding bonds under this subtitle for:</text> <level label="1"> <text>Refunding any bonds issued under this subtitle, including the payment of any redemption premium on the bonds and any interest accrued or to accrue to the date of redemption of the bonds; and</text> </level> <level label="2"> <text>Refunding any bonds issued under Subtitle 3 of this title.</text> </level> </level> <level label="b"> <text>This issuance of refunding bonds under this section, the details of their issuance, the rights of their holders, and the rights, duties, and obligations of the Department with respect to them are governed by the provisions of this subtitle relating to revenue bonds, insofar as those provisions may be applicable, except that the issuance of such refunding bonds and the obligations with respect to them are not subject to the provisions of § 3-516 of this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-601" title_number="3" title_name="Financing by Department" subtitle_number="6" subtitle_name="Special Bonds and Borrowings"> <level label="a"> <text>In order to utilize to the greatest extent possible the benefits of available financial resources relating to transportation purposes, including federal grants, loans, transportation facility revenue sources, and other programs, the Department from time to time may issue its bonds and otherwise borrow funds, as provided in this subtitle, to finance the costs of transportation facilities.</text> </level> <level label="b"> <text>The Department may apply for any financial assistance in support of projects deemed appropriate by the Secretary.</text> </level> <level label="c"> <text>The Department may undertake the following actions and do all things necessary and appropriate consistent with such actions to utilize the available resources specified in subsection (a) of this section:</text> <level label="1"> <text>Pledge and use existing and anticipated federal funds paid to or expected to be paid to the Department for transportation purposes for the payment of the principal of and interest on the Department’s bonds or other debt obligations issued under this subtitle to finance the costs of transportation facilities; and</text> </level> <level label="2"> <level label="i"> <text>Borrow funds from the federal government or its agencies, and evidence such borrowing with a promissory note or other evidence of obligation;</text> </level> <level label="ii"> <text>Borrow funds from a nongovernment lender if the loan is guaranteed by the federal government or its agencies; and</text> </level> <level label="iii"> <level label="1"> <text>Use the proceeds of the loans described in items (i) and (ii) of this paragraph in connection with transportation facilities including use of the proceeds to pay the costs of financing transportation facilities and the payment of debt service on the Department’s bonds issued in connection with such transportation facilities;</text> </level> <level label="2"> <text>Repay the loans with revenues attributable to the transportation facilities being financed; and</text> </level> <level label="3"> <text>Pledge revenues attributable to the transportation facilities being financed in order to secure the Department’s obligations to the federal government or its agencies or a nongovernment lender in connection with the loans.</text> </level> </level> </level> </level> <level label="d"> <text>If the Department intends to pledge any future federal aid from any source to support repayment of bonds issued under this subtitle:</text> <level label="1"> <text>The aggregate outstanding and unpaid principal amount of debt issued under this subtitle or Title 4, Subtitle 3 of this article that is secured by a pledge of future federal aid may not exceed $1,000,000,000 as of June 30 of any fiscal year, provided that the proceeds may be used only for:</text> <level label="i"> <text>Designing and constructing the Baltimore Red Line;</text> </level> <level label="ii"> <text>Procuring zero–emission buses consistent with § 7–406 of this article and constructing related infrastructure, including bus maintenance facilities;</text> </level> <level label="iii"> <text>Developing and constructing the Southern Maryland Rapid Transit Corridor;</text> </level> <level label="iv"> <text>Designing and constructing improvements to the Maryland Route 2 and Route 4 corridor, including the Thomas Johnson Bridge;</text> </level> <level label="v"> <text>Designing and constructing improvements to the Maryland Route 90 corridor;</text> </level> <level label="vi"> <text>Designing and constructing improvements to the Interstate 81 corridor; or</text> </level> <level label="vii"> <text>Major rehabilitation of the existing light rail system, including replacement light rail vehicles and related station and maintenance facility improvements;</text> </level> </level> <level label="2"> <text>The date of maturity may not be later than 15 years after the date of issue; and</text> </level> <level label="3"> <text>No part of the tax levied under § 3–215 of this title may be repealed, diminished, or applied to any other purpose until:</text> <level label="i"> <text>The bonds issued under this subtitle and interest on them have become due and fully paid; or</text> </level> <level label="ii"> <text>Adequate and complete provision for payment of the principal and interest has been made.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>By resolution of the Secretary, the Department may:</text> <level label="i"> <text>Borrow funds to finance the costs of transportation facilities;</text> </level> <level label="ii"> <text>Evidence the borrowing by the issuance and sale of revenue–backed bonds; and</text> </level> <level label="iii"> <text>Pledge and use a dedicated revenue source, which may include revenues attributable to the transportation facilities being financed, for the payment of the principal of and interest on the Department’s revenue–backed bonds described in this subsection.</text> </level> </level> <level label="2"> <text>Payment of the principal of or interest on revenue–backed bonds issued under this subtitle may not be supported directly or indirectly by State tax revenues pledged to meet debt service on Consolidated Transportation Bonds as prescribed under § 3–215 of this title.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="3-602" title_number="3" title_name="Financing by Department" subtitle_number="6" subtitle_name="Special Bonds and Borrowings"> <level label="a"> <text>Bonds issued by the Department under this subtitle shall be known as “special transportation project revenue bonds”.</text> </level> <level label="b"> <text>A resolution authorizing the issuance of special transportation project revenue bonds shall:</text> <level label="1"> <text>Describe generally the transportation facilities to be financed by the sale of bonds;</text> </level> <level label="2"> <text>State the estimated cost of financing these transportation facilities; and</text> </level> <level label="3"> <text>With respect to the bonds, specify:</text> <level label="i"> <text>The date of issue;</text> </level> <level label="ii"> <text>The date of each maturity, which may not be later than 30 years after the date of issue;</text> </level> <level label="iii"> <text>The amount of each maturity, which need not be in equal principal amounts or consecutive annual installments;</text> </level> <level label="iv"> <text>The rate of interest payable on the bonds, or the manner of determining the rate of interest, and the date or dates of payment of interest;</text> </level> <level label="v"> <text>The tenor, form, denomination, manner of execution, and place of payment of the principal of and interest on the bonds, which may be at any bank or trust company within or without the State;</text> </level> <level label="vi"> <text>Whether the bonds are to be issued in coupon, registered or book entry form and whether provision is to be made for the registration of the principal only of coupon bonds, for the reconversion of fully registered bonds into coupon form, and for the replacement of bonds that are mutilated, lost, or destroyed;</text> </level> <level label="vii"> <text>Whether the bonds are to be sold at public or private sale, as determined by the Secretary;</text> </level> <level label="viii"> <text>If the bonds are to be sold at public sale:</text> <level label="1"> <text>The form of notice of sale, which shall outline the terms and conditions of the sale; and</text> </level> <level label="2"> <text>The form of advertisement of a summary notice of sale, which shall be published at least once in an appropriate newspaper of general circulation as determined by the Secretary;</text> </level> </level> <level label="ix"> <text>Whether all or any part of the bonds are redeemable before maturity and any terms, conditions, and prices of redemption; and</text> </level> <level label="x"> <text>Any other matter relating to the form, terms, conditions, issuance, sale, and delivery of the bonds.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>The resolution may provide that the Secretary may postpone the time for receipt of proposals for the bonds without republishing the form of advertisement for the bonds.</text> </level> <level label="2"> <level label="i"> <text>The Secretary shall provide notice of the new date and time of sale not less than 24 hours prior to the time proposals are to be submitted, which date may not be more than 30 days after the originally scheduled date of sale.</text> </level> <level label="ii"> <text>The notice may be given by TM3 News Service or a similar service or any other method that the Secretary deems appropriate.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>Special transportation project revenue bonds shall be executed on behalf of the Department by the manual or facsimile signature of the Secretary.</text> </level> <level label="2"> <text>Other signatures on the bonds may be either manual or facsimile.</text> </level> <level label="3"> <text>If an individual whose manual or facsimile signature appears on any bond or coupon ceases to serve in an authorized capacity before the delivery of the bond, the signature nevertheless is as valid and sufficient for all purposes as if the individual had remained in that capacity until delivery of the bond.</text> </level> </level> <level label="e"> <text>Forty-five days before each issuance of bonds under this section, the Department must report the proposed issuance to the Legislative Policy Committee for review and comment.</text> </level> <level label="f"> <text>Each issue of special transportation project revenue bonds shall be approved before sale by resolution of the Board of Public Works.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-603" title_number="3" title_name="Financing by Department" subtitle_number="6" subtitle_name="Special Bonds and Borrowings"> <level label="a"> <text>Notwithstanding any other provision of law or any recitals in the instruments, the bonds, notes, and other evidences of obligation issued under this subtitle are investment securities under the laws of this State.</text> </level> <level label="b"> <text>The bonds, notes, and other evidences of obligation issued under this subtitle and their issuance and sale are exempt from the provisions of §§ 8-206 and 8-208 of the State Finance and Procurement Article.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-604" title_number="3" title_name="Financing by Department" subtitle_number="6" subtitle_name="Special Bonds and Borrowings"> <level label="a"> <text>The Department from time to time may issue its refunding bonds for refunding any special transportation project revenue bonds.</text> </level> <level label="b"> <text>The powers granted and limitations imposed in this subtitle as to the issuance of special transportation project revenue bonds also apply to the issuance of refunding bonds.</text> </level> <level label="c"> <text>The State Treasurer shall segregate the proceeds of the sale of any refunding bonds in a separate trust fund to be used only to pay the purchase or redemption prices of the bonds to be refunded.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-605" title_number="3" title_name="Financing by Department" subtitle_number="6" subtitle_name="Special Bonds and Borrowings"> <level label="a"> <text>Before the preparation of definitive bonds, the Department may issue its interim certificates or temporary bonds, with or without coupons, exchangeable for definitive bonds when the definitive bonds have been executed and are available for delivery.</text> </level> <level label="b"> <text>The Department may issue its bond anticipation notes, payable to the bearer or registered holder of the notes out of the first proceeds of the next sale of special transportation project revenue bonds.</text> </level> <level label="c"> <text>The resolution authorizing the issuance of bond anticipation notes may provide for the issuance of these notes in series, as funds are required, and for the renewal of these notes at maturity, with or without resale.</text> </level> <level label="d"> <text>The issuance of bond anticipation notes, the details of issuance, the rights of their holders, and the rights, duties, and obligations of the Department with respect to the bond anticipation notes are governed by the provisions of this subtitle relating to the issuance of the bonds in anticipation of the sale of which the notes are issued.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-606" title_number="3" title_name="Financing by Department" subtitle_number="6" subtitle_name="Special Bonds and Borrowings"> <level label="a"> <level label="1"> <text>Bonds issued under this subtitle may be secured by a trust agreement between the Department and a corporate trustee, which may be any trust company or bank having trust powers within or without the State.</text> </level> <level label="2"> <text>The trust agreement may pledge or assign:</text> <level label="i"> <text>All or any part of the existing and anticipated federal funds paid to or expected to be paid to the Department for transportation purposes; or</text> </level> <level label="ii"> <text>Revenue from a dedicated revenue source, which may include revenues attributable to the transportation facilities being financed.</text> </level> </level> <level label="3"> <text>The trust agreement may not pledge or assign any State tax revenues pledged to meet debt service on Consolidated Transportation Bonds as prescribed under § 3–215 of this title.</text> </level> </level> <level label="b"> <text>Any trust agreement or bond authorizing resolution may:</text> <level label="1"> <text>Contain provisions for the protection and enforcement of the rights and remedies of bondholders as are considered reasonable and proper, including covenants setting forth the duties of the Department as to the financing or development of any transportation facility, the extension, enlargement, improvement, maintenance, operation, repair, and insurance of the transportation facility, and the custody, safeguarding, and application of money;</text> </level> <level label="2"> <text>Provide for the employment of consulting engineers in connection with the construction or operation of any transportation facility;</text> </level> <level label="3"> <text>Set forth the rights and remedies of the bondholders and of the trustee;</text> </level> <level label="4"> <text>Restrict the individual right of action by bondholders; and</text> </level> <level label="5"> <text>Contain any other provisions that the Department considers reasonable and proper for the security of the bondholders.</text> </level> </level> <level label="c"> <text>All expenses incurred in carrying out the trust agreement may be treated as a part of the cost of the operation of the transportation facility in connection with which the bonds have been issued.</text> </level> <level label="d"> <text>The proceeds of the sale of bonds shall be paid to the trustee under the trust agreement securing the bonds and shall be disbursed in the manner and under the restrictions, if any, provided in the trust agreement.</text> </level> <level label="e"> <text>Any bank or trust company incorporated under the laws of this State that acts as depositary of the proceeds of the bonds or of revenues may furnish any indemnifying bonds or pledge any securities that the Department requires.</text> </level> </section> <section article="gtr" article_name="Transportation" number="3-607" title_number="3" title_name="Financing by Department" subtitle_number="6" subtitle_name="Special Bonds and Borrowings"> <level label="a"> <text>The bonds, notes, and other evidences of obligation issued under this subtitle, their transfer, the interest payable on them, and any income derived from them, including any profit realized in their sale or exchange, shall be exempt from taxation by this State or by any of its political subdivisions, municipal corporations, or public agencies.</text> </level> <level label="b"> <text>The bonds, notes, and other evidences of obligation issued under this subtitle are not and may not be considered to constitute a debt or a pledge of the faith and credit of the State of Maryland, but shall be payable, as to both principal and interest, only from the proceeds of the revenues pledged or made available under this subtitle for this purpose.</text> </level> <level label="c"> <text>The Department’s pledge of revenues and funds to secure its bonds, notes, and other evidences of obligation issued under this subtitle, shall be valid and binding against any person having a claim against the Department, and shall have priority over any such claim, regardless of whether the person has notice of the Department’s pledge.</text> </level> <level label="d"> <text>Notwithstanding any other provision of law, the Department is only required to file or record in the records of the Department any resolution, trust agreement, or other instrument that creates a lien on, a security interest in, or an assignment of:</text> <level label="1"> <text>Any revenues;</text> </level> <level label="2"> <text>Any rights to receive revenues; or</text> </level> <level label="3"> <text>Any moneys or securities in the funds and accounts pledged to the bonds, notes, or other evidence of obligation of the Department.</text> </level> </level> </section>