1. (a) This section applies only to the following governmental entities:

   1. (1) a county;
   2. (2) a municipality;
   3. (3) a public corporation or other political subdivision of the State; and
   4. (4) any instrumentality or agency of a county, municipality, public corporation, or other political subdivision of the State.

2. (b)

   1. (1) A bond or grant anticipation note issued under Part III of this subtitle shall be considered investment securities to the extent set forth in this section.

   2. (2) If a bond issued by a governmental entity 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. (i) the ordinance, resolution, or other authority under which the bond is issued subjects the bond to an indenture or agreement that is separate from the ordinance, resolution, or authority;

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

         1. 1. the proceeds of limited sources of revenue; or
         2. 2. a special fund established for that purpose;
      3. (iii) any law limits payment of principal and interest to a certain amount or rate of tax that may be imposed; or
      4. (iv) principal or interest are registrable.

3. (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. (1) issued on the full faith and credit of the governmental entity;
   2. (2) payable to bearer; and
   3. (3) secured as to the payment of principal and interest by the unlimited taxing power of the governmental entity.

Added by Acts 2013, c. 119, § 2, eff. Oct. 1, 2013.