In this subtitle the following words have the meanings indicated. “Bond” means a bond, note, or other similar instrument that a county or municipality issues under this subtitle. “Chief executive” means the president, chair, mayor, county executive, or any other chief executive officer of a county or municipality. “Commercial property” means real property that is: not designed principally or intended for human habitation; or used for human habitation and is improved by more than four single family dwelling units. “Environmental remediation project” means a project that is intended to remove environmental or health hazards. “Environmental remediation project” includes: a project that promotes indoor air and water quality; asbestos remediation; lead paint removal; and mold remediation. “Program” means a clean energy loan program established under this subtitle. “Resiliency project” means a project that is intended to increase the capacity of a property to withstand natural disasters and the effects of climate change. “Resiliency project” includes: a flood mitigation project; a stormwater management project; a project to increase fire or wind resistance; a project to increase the capacity of a natural system; an inundation adaptation project; alternative vehicle charging infrastructure; and energy storage.

A county or municipality may enact an ordinance or a resolution to establish a clean energy loan program.

The purpose of a program is to provide loans to residential property owners, including low income residential property owners, and commercial property owners to finance or refinance: energy and water efficiency projects; environmental remediation projects; renewable energy projects; and resiliency projects. A private lender may provide capital for a loan provided to a commercial property owner under the program.

An ordinance or resolution enacted under § 1–1102 of this subtitle shall provide for: eligibility requirements for participation in the program, including eligibility requirements for: energy and water efficiency projects, renewable energy devices, environmental remediation projects, and resiliency projects; and property and property owners; and loan terms and conditions, including a provision that requires that a loan be repaid over a term not to exceed the useful life of the project as determined by the program. Eligibility requirements under subsection (a) of this section shall include a requirement that the county or municipality give due regard to the property owner’s ability to repay a loan provided under the program, in a manner substantially similar to that required for a mortgage loan under §§ 12–127, 12–311, 12–409.1, 12–925, and 12–1029 of the Commercial Law Article.

Subject to subsection (c) of this section, a program shall require a property owner to repay a loan provided under the program through a surcharge on the owner’s property tax bill. Except for a surcharge authorized under subsection (c) of this section, a county or municipality may not set a surcharge greater than an amount that allows the county or municipality to recover the costs associated with: issuing bonds to finance the loan; and administering the program. With the express consent of any holder of a mortgage or deed of trust on a commercial property that is to be financed through a loan to the commercial property owner under the program: a county or municipality may collect loan payments owed to a private lender or to the county or the municipality for a loan to a commercial property owner, and costs associated with administering the program, through a surcharge on the property owner’s property tax bill; an unpaid surcharge under this subsection shall be, until paid, a lien on the real property on which it is imposed from the date it becomes payable; and the provisions of Title 14, Subtitle 8 of the Tax – Property Article that apply to a tax lien shall also apply to a lien created under this subsection. A person who acquires property subject to a surcharge under this section assumes the obligation to pay the surcharge.

A county or municipality may issue bonds to finance loans made through a program. To issue a bond, a county or municipality shall adopt an ordinance or a resolution that specifies the maximum principal amount of the bond. In the ordinance or resolution, the county or municipality may: specify the items listed in subsection (d) of this section; authorize the finance board of the county or municipality to specify those items by ordinance or resolution; or authorize the chief executive to specify those items by executive order. For each issuance of a bond, the county or municipality may specify: the principal amount; the interest rate or, for floating or variable rates of interest, the method to determine the interest rate; the manner and terms of sale, including whether by competitive or negotiated sale; the time of execution, issuance, and delivery; the form and denomination; the source, manner, times, and places to pay principal or interest; conditions for redemption before maturity; the purposes for which proceeds may be spent; the source of security; and other provisions that are necessary or desirable to effect the program.

A county or municipality may incur general obligation debt for the purposes under this subtitle. Subject to subsection (c) of this section, a county or municipality may issue bonds to finance loans made under a program in accordance with the procedures of the county or municipality for authorization to sell and issue other evidences of indebtedness. A bond issued in accordance with an ordinance or a resolution that pledges the full faith and credit of a county or municipality is subject to: any applicable requirement of the Maryland Constitution and the county’s or municipality’s charter and laws on referendum for the issuance of general obligation debt; and any limitation imposed by public general law, public local law, or charter on general obligation debt of the county or municipality.

A bond: may be in bearer form; may be registrable as to principal alone or as to both principal and interest; and is a security under § 8–102 of the Commercial Law Article, whether or not the bond is one of a class or series or is divisible into a class or series of instruments. A bond shall be signed manually or in facsimile by the chief executive. An officer’s signature or facsimile signature on a bond remains valid even if the officer leaves office before the bond is delivered. The seal of the county or municipality shall be affixed to the bond and attested to by the clerk or other similar administrative officer of the county or municipality. A bond shall mature not later than 40 years after the date of issue. Bonds may be issued as serial bonds or term bonds with provisions for a mandatory sinking fund or other annual principal redemption beginning not later than 3 years after the date of issue. A bond shall be sold in the manner, at public sale or private negotiated sale, and on the terms at, above, or below par, as the county or municipality considers best. A bond is not subject to §§ 19–205 and 19–206 of this article.

A bond, the transfer of a bond, the interest payable on a bond, the income derived from a bond, and the profit realized on the sale or exchange of a bond are exempt from State and local taxes. A county or municipality may issue bonds without regard to the federal tax status of the bonds.

In an action involving the validity or enforceability of a bond or security for a bond, a finding by a county or municipality is conclusive as to: the public purpose of an action taken under this subtitle; and any other matter relating to the issuance of a bond.