Maryland Statutes
Subtitle 1 - General Obligation Bonds and Notes
Section 22-108 - Distribution of Funds

(a)    (1)    From the money received from the taxes imposed under § 22–106 of this subtitle together with the amount in hand to the credit of the Current Bond Fund or the amount applicable to the payment of interest and principal on the bonds, the Commission shall:
            (i)    pay all interest on the bonds as and when due; and
            (ii)    pay or reserve a sufficient amount of money to pay the serial bonds becoming due during the taxable year.
        (2)    After making the distributions required under paragraph (1) of this subsection, the Commission shall deposit in one or more banks in Montgomery County or Prince George’s County, to the credit of both counties and the Commission, as a joint fund to be known as the Sinking Fund Account, the amount raised for the payment of the proportionate part of the principal of the sinking fund bonds.
    (b)    The Commission and Montgomery County and Prince George’s County shall invest money in the Sinking Fund Account in any bonds in which the U.S. Treasury Department authorizes national banks to invest savings or trust funds.
    (c)    If receipts from the tax or other sources are inadequate to pay the principal of the serial bonds becoming due during the taxable year and to deposit the principal payment on the sinking fund bonds, the deficiency shall be added to and collected in the following year’s tax levy.
    (d)    Before the first taxable year for property taxes, the Commission may pay the interest on any bonds it issues out of the proceeds of the sale of the bonds.

Structure Maryland Statutes