In this section, “local government” means a county or municipal corporation in the State. A local government: may enter into an agreement to fund an insurance pool established under this subtitle; and except as otherwise provided in this section, may determine by resolution the provisions, terms, conditions, and duration of the agreement. Except as provided in paragraph (2) of this subsection, a payment obligation in an agreement authorized by this section: shall be a general obligation of the local government to which its full faith and credit and unlimited taxing power is pledged; and may not be subject to annual appropriation by the local government. If a provision of the Maryland Constitution limits a local government in undertaking a payment obligation described in paragraph (1) of this subsection, or requires a local government to comply with certain procedures before undertaking a payment obligation described in paragraph (1) of this subsection, the local government may provide that the payment obligation is: a limited obligation of the local government repayable from assets and revenues as provided in the agreement; or subject to annual appropriation by the local government. Subject to the limitations of this section, a local government may undertake a payment obligation in an agreement authorized by this section: without regard to any limitations contained in its charter or other applicable public local or public general law that otherwise would apply; and without complying with any procedures contained in its charter or other applicable public local or public general law that otherwise would be required. On the date a local government executes an agreement authorized by this section, the aggregate outstanding and unpaid principal amount that the local government is obligated to pay under the agreement may not exceed 0.2% of the local government’s assessable base for real property tax purposes for the fiscal year in which the agreement is executed, as determined by the State Department of Assessments and Taxation.