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

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

      1. (i) the proceeds of limited sources of revenue; or
      2. (ii) a special fund established for that purpose;
   3. (3) any law limits payment of principal and interest to a certain amount or rate of tax that may be imposed; or
   4. (4) 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 issuer;
   2. (2) payable to bearer; and
   3. (3) secured as to the payment of principal and interest by the unlimited taxing power of the issuer.

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