(a) A governmental entity may issue bond or grant anticipation notes under this part as notes in the nature of commercial paper.
(b) A bond or grant anticipation note issued as a note in the nature of commercial paper may be secured by:
(1) a trust indenture with a trust company, or a bank with powers of a trust company, in or outside the State; and
(2) a letter of credit, line of credit, or other credit arrangement from or with a lending institution.
(c) (1) For bond anticipation notes, the credit arrangement may be made payable out of:
(i) the first proceeds of sale of the bonds; or
(ii) the tax or other revenue that the governmental entity has pledged to payment of the principal of and interest on the bonds.
(2) For grant anticipation notes, the credit arrangement may be made payable out of the proceeds of the grant.
Structure Maryland Statutes
Subtitle 2 - Public Securities
Part III - Bond and Grant Anticipation Notes
Section 19-211 - Scope of Part
Section 19-212 - Authority to Issue
Section 19-213 - Ordinance or Resolution
Section 19-214 - Amount of Notes
Section 19-215 - Written Commitment
Section 19-216 - Signing of Notes
Section 19-217 - Payment of Principal and Interest
Section 19-218 - Proceeds of Sale of Bond Anticipation Notes
Section 19-219 - Interest Rate Limit on Bonds