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Terms Used In Maryland Code, ECONOMIC DEVELOPMENT 10-515

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • state: means :

    (1) a state, possession, territory, or commonwealth of the United States; or

    (2) the District of Columbia. See
  • Trustee: A person or institution holding and administering property in trust.
(a) (1) The Corporation may secure a bond by a trust agreement between the Corporation and a corporate trustee.

(2) A corporate trustee may be any trust company or bank that has the powers of a trust company in or outside the State.

(3) A corporation or trust company incorporated in the State may:

(i) act as depository of bond proceeds or revenue; and

(ii) furnish any indemnity bond or pledge security that the Corporation requires.

(b) The trust agreement or the resolution that provides for the issuance of a bond may:

(1) state the rights and remedies of bondholders and any trustee;

(2) contain provisions to protect and enforce the rights and remedies of bondholders;

(3) contain covenants stating the duties of the Corporation as to the custody, safeguarding, and application of money;

(4) restrict the individual right of action of bondholders;

(5) provide for the payment of the bond proceeds and revenues to an officer, board, or depository that the Corporation determines with the safeguards and restrictions that the Corporation determines; and

(6) provide for the method of disbursement of the bond proceeds and revenues, with the safeguards and restrictions that the Corporation determines.

(c) Expenses incurred in carrying out a trust agreement may be treated as a part of the cost of operation of the Corporation.