Md. Code, Economic Development § 10-123

(a) (1) The Corporation may issue bonds to refund outstanding bonds, including paying:

(i) any redemption premium;

(ii) interest accrued or to accrue to the date of redemption, purchase, or maturity of the bonds; and

(iii) if considered advisable by the Corporation, any part of the cost of a project.

(2) Refunding bonds may be issued for any corporate purpose, including:

(i) realizing savings in the effective costs of debt service, directly or through a debt restructuring;

(ii) alleviating an impending or actual default; or

(iii) relieving the Corporation of a contractual agreement that the Corporation finds to be unreasonably onerous, impracticable, or impossible to perform.

(b) (1) The Corporation may issue refunding bonds in one or more series in an amount greater than the amount of the bonds to be refunded.

(2) (i) In addition to other sources of payment that the Corporation determines, refunding bonds may be payable from escrowed bond proceeds and earnings and profits on investments.

(ii) Escrowed bond proceeds and earnings and profits on investments used under subparagraph (i) of this paragraph constitute revenues of a project under this subtitle.

(c) In the discretion of the Corporation, the proceeds of refunding bonds may be:

(1) applied to the purchase, retirement at maturity, or redemption of outstanding bonds on a date the Corporation determines; and

(2) pending application under item (1) of this subsection, placed in escrow.

(d) (1) The Corporation may invest escrowed refunding bond proceeds in investments and other obligations, maturing on appropriate dates to assure the prompt payment of the principal of, interest on, and any redemption premium on the bonds to be refunded.

(2) (i) Except as provided in subparagraph (ii) of this paragraph, the Corporation shall determine the investment of the proceeds of refunding bonds.

(ii) If the Corporation loans the proceeds of refunding bonds to a person as provided in § 10-125 of this subtitle, the loan recipient shall determine the investment of the proceeds of refunding bonds.

(3) The earnings and profits on investments or other obligations may be applied to the payment of the bonds to be refunded.

(4) After the terms of the escrow have been fully satisfied, the balance of the proceeds and earnings and profits on investments or other obligations may be returned to the Corporation or the loan recipient for use in any lawful manner.