Maturity

Checkout our iOS App for a better way to browser and research.

    (a)    (1)    This section does not apply to a bond that:

            (i)    matures within 1 year after the date of issue and is issued:

                1.    in anticipation of tax receipts;

                2.    to meet current expenses; or

                3.    to meet an emergency;

            (ii)    is sold to the United States or a unit or instrumentality of the United States;

            (iii)    is issued under a plan of composition approved in a proceeding under Chapter IX of the United States Bankruptcy Act; or

            (iv)    is issued under any other plan to refund or refinance in exchange, bond for bond, an outstanding maturing debt, other than:

                1.    a current or floating debt; or

                2.    a bond under item (i) of this paragraph.

        (2)    This section does not apply to bond or grant anticipation notes issued under Part III of this subtitle.

        (3)    This section does not apply to bonds issued under an enabling act that specifically states that this section does not apply or that provides a different method for establishing the maturity of the bonds.

    (b)    (1)    A State unit shall issue bonds on a serial maturity plan.

        (2)    The State unit may:

            (i)    vary the amounts of the series; and

            (ii)    provide for the maturity of a series in consecutive annual installments or at longer intervals.

    (c)    (1)    The maturity date of the final series shall be based on the purpose for which the bonds are issued:

            (i)    within the time limit that applies under the schedule in paragraph (2) of this subsection; or

            (ii)    if more than 1 time limit applies, within the shortest applicable time limit.

        (2)    The schedule of maturity dates is as follows:

� Limit on Maturity Purpose of Issue    of Issue�� Paving existing highways or streets      10 years�� Airports and buildings constructed or to be constructed on airports     

15 years�� Highway construction      20 years�� Electric light and power systems      25 years�� Gas systems      25 years�� Grade crossing eliminations      25 years�� Harbor improvements      25 years�� School construction      25 years�� All unscheduled permanent structures of durable materials     

25 years�� Bridges      30 years�� Land acquired for permanent improvements      40 years�� Sewerage installation      40 years�� Water systems      40 years�� All other unscheduled proprietary or public purposes 40 years��


Download our app to see the most-to-date content.