In this subtitle the following words have the meanings indicated. “Authority” means a nonprofit or quasi–governmental entity created by one or more local governments under § 1–1403 of this subtitle. “Board” means the board of directors of an authority. “Bond” means a bond issued by an authority under this subtitle. “Bond” includes a bond, a refunding bond, a note, and any other obligation. “Cost” includes: the purchase price of property; the cost to acquire any right, title, or interest in property; the cost of any improvements made to property; the amount to be paid to discharge each obligation necessary or desirable to vest title to any part of property in an authority or other owner; the cost of any property, right, easement, franchise, or permit associated with a project; the cost of labor, machinery, and equipment necessary to implement a project; financing charges; interest and reserves for principal and interest and for improvements; the cost of revenue and cost estimates, engineering and legal services, plans, specifications, studies, surveys, and other expenses necessary or incident to determining the feasibility or practicability of a project; administrative expenses; and other expenses as necessary or incident to: financing a project; acquiring and improving a project; placing a project in operation, including reasonable provisions for working capital; and operating and maintaining a project. “Local government” means a municipality or a county. “Project” means any organized plan carried out by an authority in relation to: acquiring and rehabilitating abandoned and dilapidated properties; and marketing and leasing, selling, or otherwise transferring the rehabilitated properties. “Project” includes: acquiring land or an interest in land; acquiring structures, equipment, and furnishings located on a property; acquiring property that is functionally related and subordinate to a project; and obtaining or contracting for any services necessary for the rehabilitation of a property. “Revenue” means the income, revenue, and other money an authority receives from or in connection with a project and all other income of an authority. “Revenue” includes grants, rentals, rates, fees, and charges. “Tax sale property” means property or an interest in property sold by the tax collector of the county in accordance with Title 14, Subtitle 8, Part III of the Tax – Property Article. “Trust agreement” means an agreement entered into by an authority to secure a bond. “Trust agreement” includes a bond contract, bond resolution, or other contract with or for the benefit of a bondholder. “Water and sewer authority” means an authority established under Title 9, Subtitle 9 of the Environment Article. “Water and sewer lien” means a lien established under § 9–949 of the Environment Article.

This subtitle shall be liberally construed to accomplish its purposes. The powers granted to an authority under this subtitle are supplemental to powers granted to an authority under any other law. This subtitle does not authorize an authority to: exercise the power of eminent domain; or impose any tax or special assessment.

By ordinance, the governing body of a local government may establish a land bank authority in accordance with this subtitle. Two or more local governments may elect to enter into an intergovernmental cooperation agreement to create a single land bank to act on behalf of the local governments, which may include one or more water and sewer authorities. An ordinance adopted under this section: is administrative in nature; is not subject to referendum; and in a charter county that has a publicly elected county executive or in a municipality that has a publicly elected chief executive or mayor, is subject to approval by the county executive, chief executive, or mayor. An ordinance adopted under subsection (a) of this section shall include proposed articles of incorporation of an authority that state: the name of the authority, which shall be “Land Bank Authority of (name of the incorporating local government)”; that the authority is formed under this subtitle; the names, addresses, and terms of office of the initial members of the board; the address of the principal office of the authority; the purposes for which the authority is formed; and the powers of the authority, subject to the limitations of this subtitle. The chief executive, county executive, or mayor of the incorporating local government, or any other official designated in the ordinance establishing an authority, shall execute and file the articles of incorporation of the authority for recordation with the State Department of Assessments and Taxation. When the State Department of Assessments and Taxation accepts the articles of incorporation for recordation, the authority becomes a body politic and corporate and an instrumentality of the incorporating local government. Acceptance of the articles of incorporation for recordation by the State Department of Assessments and Taxation is conclusive evidence of the formation of the authority. By ordinance, the governing body of the incorporating local government may adopt an amendment to the articles of incorporation of an authority. Articles of amendment may contain any provision that lawfully could be contained in articles of incorporation at the time of the amendment. The articles of amendment shall be filed for recordation with the State Department of Assessments and Taxation. The articles of amendment are effective as of the time the State Department of Assessments and Taxation accepts the articles for recordation. Acceptance of the articles of amendment for recordation by the State Department of Assessments and Taxation is conclusive evidence that the articles have been lawfully and properly adopted. Subject to this section and any limitations imposed by law on the impairment of contracts, the incorporating local government, in its sole discretion, by ordinance may: set or change the structure, organization, procedures, programs, or activities of an authority; or subject to paragraph (2) of this subsection, terminate the authority. If one or more local governments engaged in an intergovernmental cooperation agreement decide not to terminate the authority, the authority may continue to operate if: the name of the authority is revised to remove the local government that has decided to terminate its participation in the authority by withdrawal; the withdrawing local government designates all property to remain with the authority except that: on demand of a withdrawing local government that is a municipality, all property located wholly within the municipality shall be transferred to the municipality; and on demand of a withdrawing local government that is a county, all property located wholly within the county and outside any municipality participating in the intergovernmental cooperation agreement shall be transferred to the county; and all obligations of the authority to the withdrawing local government and of the withdrawing local government to the authority are assumed by the withdrawing local government. On termination of the authority: title to all property of the authority shall be transferred to and shall vest in the incorporating local government; and all obligations of the authority shall be transferred to and assumed by the incorporating local government.

An ordinance that creates an authority shall establish a board to govern the authority and shall include provisions for: appointment procedures; powers of the board; removal procedures; term lengths; and the election of a chair.

Except as limited by the authority’s articles of incorporation, an authority has all the powers specified in this subtitle. An authority may: adopt, amend, and repeal bylaws for the conduct of business of the authority; sue and be sued; maintain an office at a place the authority designates; borrow money; issue bonds and other obligations for any corporate purpose in accordance with this subtitle or an ordinance adopted under this subtitle; invest money of the authority in instruments, obligations, securities, or property; enter into contracts and execute the instruments or agreements necessary or convenient to carry out this subtitle or an ordinance adopted under this subtitle to accomplish the purposes of the authority; solicit and accept gifts, grants, loans, or other assistance in any form from any public or private source, subject to this subtitle or any ordinance adopted under this subtitle; participate in a program of the federal government, the State, a political subdivision of the State, or an intergovernmental entity created under State law; contract for goods and services; study, develop, and prepare reports or plans to assist in the authority’s exercise of powers and to monitor and evaluate the authority’s progress; contract with public or private entities for services necessary to manage and operate the authority; provide acquisition, management, and sale services to a local government for property owned by the local government; create, own, control, or be a member of a corporation, limited liability company, partnership, or other person, whether operated for profit or not for profit, for the purposes of developing property in order to maximize marketability; exercise a power usually possessed by a private corporation in performing similar functions, unless to do so would conflict with State law; insure against losses in connection with the real property, assets, or activity of the authority; design, develop, construct, demolish, rehabilitate, renovate, relocate, and otherwise improve real property or interests in real property; raise revenue by any legal means required to make the operations and activities of the authority self–sustaining; and do all things necessary or convenient to carry out the powers expressly granted by this subtitle or by an ordinance adopted under this subtitle. An authority may delegate to a member or officer a power granted to the authority by this subtitle, including the power to execute a bond, obligation, certificate, deed, lease, mortgage agreement, or other document or instrument.

An authority may: acquire real property or rights or interests in real property, directly or through a person or governmental entity, by gift, devise, transfer, exchange, foreclosure, purchase, or otherwise on terms and conditions and in a manner the authority considers proper; own property in the authority’s name, including tax foreclosed property and property without clear title; sell, lease as lessor, transfer, and dispose of the authority’s interest in property; procure insurance against loss in connection with the property, assets, or activities of the authority; and execute deeds, mortgages, contracts, leases, purchases, or other agreements regarding the property of the authority. Property purchased, owned, or sold under this section may not be located outside the jurisdiction of the local government in which the authority is located. An authority may quiet title or foreclose on a property in which it holds an interest that is not fee simple title by: conducting an examination of title to determine the identity of any person possessing a claim or interest in the property; and filing a complaint to quiet title in accordance with Title 14, Subtitle 6 of the Real Property Article. An authority may join in a single complaint to quiet title or foreclose on one or more parcels of real property.

An authority may: employ staff and retain consultants; and set their compensation.

The court may appoint an authority to serve as a receiver in a receivership proceeding filed by a local government.

An authority shall: adopt a code of ethics for the authority’s directors, officers, and employees; establish policies and procedures requiring: the disclosure of relationships that may create a conflict of interest; and any member of the board with a direct or indirect interest in a matter before the authority to disclose the member’s interest to the board before the board takes any action on the matter; and comply with the Open Meetings Act. Except as otherwise provided in this subtitle or the ordinance establishing an authority, the procedures of the incorporating local government control any matter relating to the internal administration of an authority.

An authority may have the same immunities as the local government that creates the authority under § 1–1403 of this subtitle.

With respect to property held or owned by the authority, the authority may: grant or acquire a license, an easement, or an option; set, charge, and collect rents, fees, and charges for use of the property; pay taxes or special assessments due; take any action, provide any notice, or institute any proceeding required to clear or quiet title in order to establish ownership by and vest title to property in the authority; abate violations of the local and State building, fire, health, and related codes; and hold, manage, maintain, operate, repair, lease as lessor, secure, prevent the waste or deterioration of, or demolish the property and take all other actions necessary to preserve the value of the property. An authority shall be made a party to, and shall defend any action or proceeding concerning, claims against property held by the authority.

Property held by an authority shall be inventoried and classified according to title status and suitability for use. A clerk of the court may not charge a fee to record a document evidencing the transfer under this subtitle of property to the authority by the State or a local government.

After an unsuccessful attempt by the local government to collect outstanding liens at tax sale and subject to the approval of the water and sewer authority, governing body, or tax collector of the jurisdiction where the property is located, an authority may accept from a person with an interest in a parcel of water and sewer lien property, tax delinquent property, or tax sale property a deed or assignment conveying that person’s interest in the property instead of: the foreclosure or sale of the property for delinquent taxes, penalties, and interest, as defined by § 14–801(d) of the Tax – Property Article; delinquent–specific taxes imposed by a local taxing jurisdiction; or delinquent water and sewer liens imposed by a water and sewer authority. After an unsuccessful attempt by the local government or water and sewer authority to collect outstanding liens that are delinquent and at the discretion of the governing body of the jurisdiction, the water and sewer authority, or the tax collector where the property is located, an authority may accept from the local government or water and sewer authority with an interest in a parcel of delinquent water and sewer lien property, tax delinquent property, or tax sale property its interest in the water and sewer liens or tax liens in the property. The authority may: collect on liens or taxes collected under subparagraph (i) of this paragraph and retain all payment of taxes, liens, penalties, or any interest on the liens or taxes; or foreclose on, enter into a deed in lieu of foreclosure, or sell the property for the liens or taxes and retain all payment of taxes, penalties, or interest on the liens or taxes and the costs of selling the property and, if any other net proceeds remain from the sale, return any net proceeds to the tax collector for distribution on a pro rata basis to the appropriate taxing units and water and sewer authorities in a ratio equal to the delinquent taxes or water and sewer liens, penalties, and interest owed on the property. Conveyance of property by deed instead of foreclosure or transfer of a lien or tax on property under this section may not affect or impair any other lien against the property or any existing recorded or unrecorded interest in the property, including any: easement or right–of–way; future installment of a special assessment; lien recorded by the State; private deed restriction; security interest or mortgage; tax lien of another taxing jurisdiction that does not consent to a release of its lien; or water and sewer lien of a water and sewer authority that does not consent to a release of its lien. A tax lien or water and sewer lien against property held by or under the control of an authority may be released or abated at any time by: a local government with respect to a lien held by the local government; the governing body of any taxing jurisdiction other than the State, county, or municipality with respect to a lien held by the taxing jurisdiction; a public water or sewer authority with respect to a tax lien, water and sewer lien, or right to collect a tax held by the public water or sewer authority; or the Comptroller with respect to a State tax lien.

Except as provided in subsections (c) and (d) of this section, money received by an authority as payment of taxes, penalties, water and sewer liens, or interest, or from the redemption or sale of property subject to a tax lien of any taxing unit, shall be returned to the tax collector in the jurisdiction where the property is located for distribution on a pro rata basis to the appropriate taxing units in an amount equal to delinquent taxes, penalties, and interest owed on the property. Proceeds received by an authority may be retained by the authority for the purposes of this subtitle, unless otherwise designated by: an agreement of the authority; the provisions of a deed; this subtitle; or any other law. Money received by an authority as payment of water and sewer liens, taxes, penalties, or interest, or from the redemption or sale of property subject to a tax lien of any taxing unit may be retained by an authority under a written agreement with a local government or a law enacted by the legislative body of a local government. To facilitate a transfer of real property to an authority, the governing body for the jurisdiction where the real property is located may release any liens for unpaid real property taxes or other charges and assessments imposed by the governing body to which the property would be otherwise subject, if: the total amount of liens for unpaid real property taxes, charges, and assessments imposed with respect to the property exceeds the lesser of the total value of the land and any improvement on the land as last determined by the tax assessor of the governing body or as determined by an appraisal report prepared, not more than 6 months before the request for the release of the lien, by a real estate appraiser who is licensed under Title 16 of the Business Occupations and Professions Article; or the tax collector for the local government has sold the real property at a tax sale under Title 14, Subtitle 8 of the Tax – Property Article, but the tax sale certificate has become void; the code enforcement office, housing department, or equivalent department or agency of the local government of the jurisdiction where the tax lien is held certifies that the property: is a vacant lot; or has a building or structure that is: vacant; and unsafe or unfit for habitation; and the authority finds that a transfer under this section is necessary: to eliminate a blighting influence; and to prevent the tax abandonment of a property. The release of a lien for real property taxes, charges, or assessments as authorized under paragraph (1) of this subsection does not abate the transferor’s liability for the remaining amount of the tax debt. The governing body of a jurisdiction may set additional standards and requirements for approval of the release of liens under this section.

An authority is exempt from any State or local tax or assessment on the authority’s properties or activities or on any revenue from the properties or activities. Except as provided in subsection (d) of this section, property that an authority sells or leases to a private entity is subject to State and local property taxes from the time of the sale or lease. The principal of and interest on bonds, the transfer of bonds, and any income derived from the bonds, including profits made on their sale or transfer, are exempt from all State and local taxes. Sale or lease to a nonprofit organization, as defined in § 1–101 of the Housing and Community Development Article, is exempt from State and local property taxes from the time of sale or lease, if: the nonprofit organization has entered into an agreement with an authority to redevelop the property; and the agreement is in force and effect and not defaulted on within the application period.

An authority may bring a civil action to prevent, restrain, or enjoin the waste of or unlawful removal of any property from real property held by the authority. An authority shall be made a party to any action to set aside: title to property the authority holds; or the sale of property by the authority. A hearing in an action under this subsection may not be held until the authority is served in accordance with the Maryland Rules.

Property of an authority is public property devoted to an essential public and governmental function and purpose. Income of an authority is received for a public and governmental purpose.

An authority is subject to any local: land use controls; permitting processes for construction, demolition, or repair of a property; and zoning laws.

An authority shall report annually on the activities of the authority to the local government where the authority is located and, in accordance with § 2–1257 of the State Government Article, the General Assembly.

An authority may: issue bonds to pay the cost of acquiring or improving property; fund or refund the bonds; purchase bonds with any funds available; and hold, pledge, cancel, or resell bonds. By resolution, an authority may authorize the chair, one of the authority’s members, or a committee of the members to determine or provide for any matter relating to bonds that the authority considers appropriate, including: specifying, determining, requiring, and approving matters, documents, and procedures that relate to the authorization, sale, security, issuance, delivery, and payment of and for the bonds; creating security for the bonds; and providing for the administration of bond issues. The power granted in paragraph (2) of this subsection is in addition to powers conferred on the authority by this subtitle and does not limit any power of the authority under this subtitle. Within the limits that the authority sets, the authority may authorize the executive director to take any of the actions described in paragraph (2) of this subsection. An authority may issue the bonds at one time or in one or more series. For each issue of an authority’s bonds, the authority shall pass a resolution that: specifies and describes the project for which the proceeds of the bond issuance are intended; generally describes the public purpose and the financing transaction to be accomplished; specifies the maximum principal amount of the bonds that may be issued by the authority; and imposes any terms or conditions on the issuance and sale of the bonds that the authority considers appropriate. Subject to any provision for their registration, bonds are negotiable instruments for all purposes regardless of whether they are payable from a special fund. The bonds may be serial bonds,    term bonds, or both. Subject to any delegation under subsection (a)(2) of this section, the resolution authorizing bonds may provide: the dates of the bonds; the maturity dates of the bonds; the interest rates on the bonds; the time at which the bonds will be payable; the denominations of the bonds; whether the bonds will be in coupon or registered form; any registration privileges of the bonds; the manner of execution of the bonds; the place at which the bonds will be payable; and any terms of redemption of the bonds. The bonds shall mature within a period not to exceed 50 years after the date of issue. The bonds shall be payable in United States currency. An authority shall sell the bonds at competitive or negotiated sale in a manner and for a price the authority determines to be in the authority’s best interests. An officer’s signature or facsimile on a bond remains valid if the officer leaves office before the bond is delivered. Pending preparation of the definitive bonds, an authority may issue interim receipts or certificates that will be exchanged for definitive bonds. A trust agreement authorizing bonds may contain provisions that are part of the contract with the bondholders, including: the rates, rentals, fees, and other charges, the amounts to be raised in each year, and the use and disposition of the revenues; the setting aside of reserves and sinking funds and their disposition; limits on the right of the authority or the authority’s agents to restrict and regulate the use of a project; limits on the purpose to which the proceeds of the sale of bonds may be applied; limits on issuing additional bonds and refunding bonds and the terms under which additional bonds may be issued and secured; the procedure to amend or abrogate the terms of a contract with bondholders and the requirements for consent; limits on the amount of project revenues to be expended for operating, administrative, or other expenses of the authority; the acts or omissions that constitute default by the authority and the rights and remedies of the bondholders in a default; the conveyance or mortgaging of a project and its site to secure the bondholders; creation and disposition of a collateral fund to secure the bondholders; and pledging the following to secure payment of bonds, subject to any existing agreements with bondholders: the full faith and credit of an authority; revenues of a project; a revenue–producing contract the authority has made with a person or public entity; or the proceeds of the sale of bonds. The members of an authority and a person executing the bonds may not be held liable personally on the bonds.

The corporate trustee under a trust agreement may be a trust company or bank that has the powers of a trust company in or outside the State. An expense incurred in carrying out the trust agreement or a resolution may be treated as part of the cost of the operation of a project.

Notwithstanding any other provision of this subtitle, in a proceeding involving the validity or enforceability of a bond or the security for a bond, the determination of an authority under this subtitle is conclusive and binding.

Bonds are securities: that may be deposited with and received by a unit of the State or a political subdivision of the State for any purpose for which the deposit of bonds or obligations of the State is authorized by law; and in which any of the following persons or entities may legally and properly invest money, including capital that the person or entity owns or controls: an officer or a unit of the State or a political subdivision of the State; a bank, a trust company, a savings and loan association, an investment company, or any other person conducting a banking business; an insurance company, an insurance association, or any other person conducting an insurance business; a personal representative, a guardian, a trustee, or any other fiduciary; and any other person.

A bond is not: a debt or liability of the State or a political subdivision of the State; or a pledge of the full faith and credit of the State or a political subdivision of the State. Each bond shall state on its face that neither the State nor a political subdivision of the State is obliged to pay the principal of or interest on the bond except from revenues pledged to the payment of the bond. The issuance of bonds does not directly, indirectly, or contingently obligate the State or any political subdivision: to impose or pledge a tax to pay the bonds; or to appropriate money to pay the bonds. This subtitle does not prohibit an authority from pledging its full faith and credit in connection with the issuance of bonds.

An authority may: impose rates, rents, fees, and charges related to a project and for the services related to a project; and contract with any person or governmental entity to exercise its authority under this section. The rates, rents, fees, and charges established by an authority under this section shall be imposed and adjusted so that the aggregate amount of the rates, rents, fees, and charges from the project, when added to other available money, is sufficient to: pay for the expenses of the project; pay the principal of and the interest on the bonds that the authority issued for the project as they become due and payable; and create and maintain reserves required or provided for in a trust agreement. The rates, rents, fees, and charges established by an authority under this section are not subject to supervision or regulation by any unit of the State.

Any pledge of revenues and other money under § 1–1420(i) of this subtitle is valid and binding from the time the pledge is made. The revenue or money that an authority pledges and receives is subject immediately to the lien of the pledge. Neither physical delivery of the revenue or money nor any other act is required to validate the lien. The lien of the pledge is valid and binding against each party with a claim against the authority in tort, contract, or otherwise, regardless of whether the party has notice of the lien. The trust agreement and any other agreement or lease creating a pledge under this section need not be filed or recorded, except in the records of the authority.

Proceeds from the sale of bonds and other revenues received under this subtitle are trust funds to be held and applied solely as provided in this subtitle. Each officer, bank, or trust company that receives trust money from an authority under this subtitle shall act as trustee of the money and shall hold and apply the money for the purposes specified under this subtitle. The officer, bank, or trust company holding money is subject to: any regulation adopted under this subtitle; and the resolution authorizing the issuance of bonds or the trust agreement.

An authority may issue bonds to refund outstanding bonds of the authority, including paying: any redemption premium; interest accrued or to accrue to the date of redemption, purchase, or maturity of the bonds; and any part of the cost of acquiring or improving property as part of a project. Refunding bonds may be issued for any corporate purpose, including: realizing savings in the effective costs of debt service, directly or through a debt restructuring; or alleviating a potential or actual default. Refunding bonds issued under this section shall be issued in the same manner and are subject to this subtitle to the same extent as any other bond. An authority may issue refunding bonds in one or more series in an amount greater than the amount of the bonds to be refunded.

An authority may issue negotiable bond anticipation notes in anticipation of the sale of bonds for any corporate purpose. Bond anticipation notes issued under this section shall be issued in the same manner as bonds. Bond anticipation notes issued under this section and the resolution authorizing them may contain any provision, condition, or limitation that may be included in a trust agreement. An authority may issue bond anticipation notes to pay any other bond anticipation notes. Bond anticipation notes shall be paid from: money available and not otherwise pledged; revenues of the authority; or the proceeds of the sale of the bonds in anticipation of which the notes were issued.

An authority shall convey title to property relating to a project and release collateral in accordance with this section when: the principal of and interest on bonds issued to finance or refinance the project, including any refunding bonds, have been fully paid and retired; or adequate provision has been made to fully pay and retire the bonds; all other conditions of the trust agreement have been satisfied; and the lien of the trust agreement has been released. On satisfaction of the conditions under subsection (a) of this section, an authority promptly shall execute any deed, conveyance, release, or document and take any other action necessary to convey title to the property and release collateral free of any lien or encumbrance created through the authority.

A bondholder, a holder of any coupons attached to bonds, or a trustee under a trust agreement securing the bonds may sue: to protect and enforce rights under State law or a trust agreement; and to enforce and compel the performance of duties by an authority or its officer, employee, or agent that this subtitle or a trust agreement requires, including imposing rates, rents, fees, and charges that the trust agreement requires to be imposed. The rights under this section are subject to any trust agreement.