§ 31-109. Security for Authority bonds; trust agreements.

(a)

(1)

Any bonds issued under the provisions of this Subtitle may be secured by a trust agreement by and between the Authority, a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the State, and other persons, as appropriate.

(2)

Any trust agreement or bond resolution may:

(A)

Pledge or assign any revenues to be received by the Authority or proceeds or benefits of any contract and may serve to convey or mortgage or otherwise secure any property or property rights;

(B)

Contain provisions for protecting and enforcing the rights and remedies of bondholders;

(C)

Restrict the individual rights of actions by bondholders; and

(D)

Contain such other provisions as the Authority deems appropriate.

(3)

Any expense incurred in carrying out the provisions of the trust agreement may be treated as a part of the cost of the operation of an education loan program.

(Chapter 704, Laws of Md., 1986)