(a) (1) In this section, the following words have the meanings indicated.
(2) "Credit instrument" means a letter of credit, bond insurance
policy, guaranty, line of credit, surety bond, or similar agreement or
commitment securing an issue of consolidated transportation bonds or
county transportation bonds.
(3) "Credit instrument provider" means an issuer of a credit instrument
the unsecured indebtedness of which, or indebtedness insured by which,
is rated on the date of issuance of the credit instrument by a
nationally recognized rating agency in 1 of its 2 highest rating
categories.
(4) "Maximum annual debt service" means, as of any particular date of
computation:
(i) With respect to an issue of consolidated transportation bonds, the
greatest amount required in the then current or any future calendar
year to pay the principal of and interest on the bonds of that issue;
and
(ii) With respect to an issue of county transportation bonds, the greatest
amount required in the then current or any future fiscal year to pay
the principal of and interest on the bonds of that issue.
(b) With respect to an issue of consolidated transportation bonds sold
after June 1, 1989, the Secretary may provide in the resolution
authorizing the issuance of the bonds that there shall be deposited in
the sinking fund maintained under § 3-215(c) of this title only the
amounts of the proceeds of the taxes levied and imposed under § 3-215
of this title that may be required from time to time to pay the
principal of and interest on the bonds, as and when due, and that
holders of bonds of that issue shall have no right to receive payment
from any other amounts deposited or maintained in the sinking fund. The
Secretary may, at his discretion, determine that:
(1) There shall be deposited with or held for the paying agent for the
bonds a credit instrument under which the credit instrument provider is
obligated to pay an amount at least equal to the maximum annual debt
service on the bonds of that issue; or
(2) The bonds shall be issued without a credit instrument if, in the
Secretary's judgment, the absence of a credit instrument will not
adversely affect the credit rating of the bonds.
(c) With respect to an issue of county transportation bonds sold after June
1, 1989, the Secretary may provide in the resolution authorizing the
issuance of the bonds that there shall be withheld and deposited in the
sinking fund maintained under § 3-307(b) of this title from funds
allocable to the county under Title 8, Subtitle 4 of this article only
the amounts that may be required from time to time to pay debt service
on the bonds, as and when due, and that holders of bonds of that issue
shall have no right to receive payment from any other amounts deposited
or maintained in the sinking fund. The Secretary may, at his
discretion, determine that:
(1) There shall be deposited with or held for the paying agent for the
bonds a credit instrument under which the credit instrument provider is
obligated to pay an amount at least equal to the maximum annual debt
service on the bonds of that issue; or
(2) The bonds shall be issued without a credit instrument if, in the
Secretary's judgment, the absence of a credit instrument will not
adversely affect the credit rating of the bonds.
(d) The sinking fund requirements established for consolidated
transportation bonds and county transportation bonds sold before June
1, 1989 shall remain unchanged so long as those bonds are outstanding
and unpaid as if this section had not been enacted.
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