1. (a)

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

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

         1. 1. in anticipation of tax receipts;
         2. 2. to meet current expenses; or
         3. 3. to meet an emergency;
      2. (ii) is sold to the United States or a unit or instrumentality of the United States;
      3. (iii) is issued under a plan of composition approved in a proceeding under Chapter IX of the United States Bankruptcy Act; or

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

         1. 1. a current or floating debt; or
         2. 2. a bond under item (i) of this paragraph.
   2. (2) This section does not apply to bond or grant anticipation notes issued under Part III of this subtitle.
   3. (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.

2. (b)

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

   2. (2) The State unit may:

      1. (i) vary the amounts of the series; and
      2. (ii) provide for the maturity of a series in consecutive annual installments or at longer intervals.

3. (c)

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

      1. (i) within the time limit that applies under the schedule in paragraph (2) of this subsection; or
      2. (ii) if more than 1 time limit applies, within the shortest applicable time limit.

   2. (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

Added by Acts 1985, c. 11, § 2, eff. Oct. 1, 1985.