Bonds to be considered investment securities

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    (a)    In this section, “bond” means an obligation of the State or of any of its units or instrumentalities.

    (b)    If a bond otherwise complies with the requirements of the Commercial Law Article for investment securities, the bond shall be considered to be an investment security notwithstanding that:

        (1)    the resolution or other authority under which the bond is issued subjects the bond to an indenture or agreement that is separate from the resolution or authority;

        (2)    the resolution or other authority under which the bond is issued limits payment of principal and interest to:

            (i)    the proceeds of limited sources of revenue; or

            (ii)    a special fund established for that purpose;

        (3)    any law limits payment of principal and interest to a certain amount or rate of tax that may be imposed; or

        (4)    principal or interest are registrable.

    (c)    A bond that is considered to be an investment security under subsection (b) of this section has all the attributes of an investment security that are possessed by a bond that is:

        (1)    issued on the full faith and credit of the issuer;

        (2)    payable to bearer; and

        (3)    secured as to the payment of principal and interest by the unlimited taxing power of the issuer.


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