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

(1)    a county;

(2)    a municipality;

(3)    a public corporation or other political subdivision of the State; and

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

(b)    (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)    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:

(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;

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

1.    the proceeds of limited sources of revenue; or

2.    a special fund established for that purpose;

(iii)    any law limits payment of principal and interest to a certain amount or rate of tax that may be imposed; or

(iv)    principal or interest are registrable.

(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)    issued on the full faith and credit of the governmental entity;

(2)    payable to bearer; and

(3)    secured as to the payment of principal and interest by the unlimited taxing power of the governmental entity.