# Economic Development (GEC)

## Title 12. Local Development Authorities and Resources

### Subtitle 1. Economic Development Revenue Bond Act

#### Section 12-113

(a)

  (1) A bond and the interest on a bond are limited obligations of the public body.

  (2) Except for bond anticipation notes and notes in the nature of commercial paper, the principal of, premium, and interest on a bond are payable solely from:

    (i) money from the financing of a facility; or

    (ii) other money made available to the public body.

  (3) Bonds and the interest on them:

    (i) are not debts or charges against the general credit or taxing powers of a public body within the meaning of any constitutional or charter provision or statutory limitation; and

    (ii) may not give rise to any pecuniary liability of an issuing public body.

  (4) A bond may state on its face that the bond:

    (i) is issued under this subtitle; and

    (ii) is not a debt to which the public body's faith and credit is pledged.

(b) On default in the payment of the principal of or interest on a bond, a court with jurisdiction:

  (1) may appoint a receiver or take other appropriate action to provide for the payment of the bond; and

  (2) shall apply any available revenue as this subtitle or a resolution adopted under this subtitle provides.

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Md. Code Ann., Econ. Dev. (as displayed at mgaleg.maryland.gov, October 16, 2026)