<section article="glg" article_name="Local Government" number="19-101" title_number="19" title_name="Public Debt" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>In authorizing the sale of municipal bonds, the governing body of a county, the commissioners of finance for Baltimore City, and the commissioners of the Washington Suburban Sanitary Commission, by resolution, may provide that loans authorized to be incurred and bonds authorized to be sold by separate acts of enabling legislation be consolidated for sale and issued, sold, and delivered as a single issue of bonds, regardless of when the enabling legislation authorizing any loan or the sale of any bonds evidencing a loan was enacted.</text> </level> <level label="2"> <text>A resolution under paragraph (1) of this subsection is not a legislative act.</text> </level> </level> <level label="b"> <level label="1"> <text>A consolidated issue of municipal bonds made under this section shall be designated as consolidated public improvement bonds of the issuing authority of the year in which the bonds are to be dated.</text> </level> <level label="2"> <text>A resolution authorizing the issuance and sale of consolidated public improvement bonds may specify all matters relating to the advertisement, sale, issuance, delivery, and payment of the bonds, including:</text> <level label="i"> <text>the forms, dates, and denominations of the bonds;</text> </level> <level label="ii"> <text>the principal maturities;</text> </level> <level label="iii"> <text>the methods to be used in determining interest payable on the bonds; and</text> </level> <level label="iv"> <text>any provisions for:</text> <level label="1"> <text>registration;</text> </level> <level label="2"> <text>redemption before stated maturity; and</text> </level> <level label="3"> <text>the use of facsimile signatures or seals.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>Notice of the public sale of consolidated public improvement bonds:</text> <level label="i"> <text>shall be made at least once in a newspaper of general circulation in the county, Baltimore City, or the Washington Suburban Sanitary District; and</text> </level> <level label="ii"> <text>also may be made in a newspaper which circulates primarily among bankers and investors.</text> </level> </level> <level label="2"> <text>At least one notice of public sale shall be made at least 10 days before the sale.</text> </level> </level> <level label="d"> <text>After deduction of the expenses of the sale of consolidated public improvement bonds, the net proceeds shall be applied in the manner and for the purposes designated in the separate underlying acts of enabling legislation.</text> </level> <level label="e"> <text>The provisions of this section supersede any inconsistent provision of law.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-102" title_number="19" title_name="Public Debt" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>This section applies to a financial officer who is entrusted with the duty of investing the sinking funds or other funds accumulated or to be accumulated for the retirement of debts or other obligations of a county, municipality, public corporation, special district, or political subdivision of the State.</text> </level> <level label="b"> <text>If a State or local law requires a financial officer to invest any portion of a sinking fund or other funds accumulated or to be accumulated for the retirement of debts or other obligations, the financial officer shall invest the funds in the following classes of securities:</text> <level label="1"> <text>the bonds or other obligations for the retirement of which the sinking fund is or will be created;</text> </level> <level label="2"> <text>the bonds, stock, or other valid obligations of the State or of any county, municipality, public corporation, special district, or other political subdivision of the State;</text> </level> <level label="3"> <text>the bonds or other obligations of the United States;</text> </level> <level label="4"> <text>United States Treasury Certificates; or</text> </level> <level label="5"> <text>bonds of any public corporation or other body, guaranteed as to payment of principal and interest by the United States.</text> </level> </level> <level label="c"> <text>If a financial officer purchases a security under subsection (b) of this section at a premium, the financial officer shall make adjustments out of the interest received from the security to reimburse any sinking fund in the custody of the financial officer for the premium paid before the maturity of the security.</text> </level> <level label="d"> <text>A security purchased under subsection (b) of this section that may be registered shall be registered in the name of the financial officer for the purpose for which the security is purchased.</text> </level> <level label="e"> <level label="1"> <text>Pending investment or reinvestment, a financial officer shall deposit any uninvested money or other funds belonging to a sinking fund described in subsection (a) of this section in a banking institution or trust company located in the State.</text> </level> <level label="2"> <text>The financial officer shall demand adequate security from the banking institution or trust company for the amount of the deposit in excess of the guarantee of the Federal Deposit Insurance Corporation.</text> </level> <level label="3"> <text>The security may consist of:</text> <level label="i"> <text>any of the classes of securities listed in subsection (b) of this section; or</text> </level> <level label="ii"> <text>a surety bond of a corporate surety company qualified to do business in the State.</text> </level> </level> <level label="4"> <text>A deposit may not be made unless security is provided in accordance with this subsection.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-103" title_number="19" title_name="Public Debt" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>Any charter provision of Anne Arundel County or Prince George’s County that requires or has the effect of requiring the county to pledge unlimited taxing powers, as to either the rate or amount, for the repayment of county debt may not be given effect if any later adopted charter provision is inconsistent with the pledge.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection applies to all bonds issued by Anne Arundel County or Prince George’s County before June 30, 1981.</text> </level> </level> <level label="b"> <text>To secure the payment of the principal of and interest on debt, Anne Arundel County or Prince George’s County, by charter provision or legislative act, may:</text> <level label="1"> <text>create, pledged for payment of principal of and interest on debt:</text> <level label="i"> <text>a sinking fund;</text> </level> <level label="ii"> <text>a debt service fund;</text> </level> <level label="iii"> <text>a debt service reserve fund; or</text> </level> <level label="iv"> <text>any other trust fund, including a fund held by a corporate trustee;</text> </level> </level> <level label="2"> <text>if sufficient money for the timely payment of principal of and interest on debt is not available or if there is a default in payment, provide that the first received general fund revenues of the county shall be applied to payment of principal of and interest on debt in an amount sufficient to:</text> <level label="i"> <text>make a payment when due; or</text> </level> <level label="ii"> <text>cure the default; and</text> </level> </level> <level label="3"> <text>pledge any county revenue to pay principal of and interest on the debt.</text> </level> </level> <level label="c"> <text>A charter provision of Anne Arundel County or Prince George’s County may not impair or be construed to impair the obligation of the county to impose and collect taxes to provide for the payment when due of principal of and interest on bonds of the county, or on bonds guaranteed by the county, if:</text> <level label="1"> <text>the county has pledged unlimited taxing powers to the bonds; and</text> </level> <level label="2"> <text>the bonds are outstanding on the effective date of the charter provision.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-104" title_number="19" title_name="Public Debt" subtitle_number="1" subtitle_name="General Provisions"> <text>The County Commissioners of Calvert County:</text> <level label="1"> <text>may charge a fee for the issuance of tax–exempt private activity bonds; and</text> </level> <level label="2"> <text>shall dedicate the proceeds of the fee to the Economic Development Loan Fund of the county.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-105" title_number="19" title_name="Public Debt" subtitle_number="1" subtitle_name="General Provisions"> <text>The governing body of Frederick County shall establish and maintain a bond rating enhancement reserve.</text> </section> <section article="glg" article_name="Local Government" number="19-106" title_number="19" title_name="Public Debt" subtitle_number="1" subtitle_name="General Provisions"> <text>Notwithstanding any other law, the pledge of any bonds or obligations issued on the full faith and credit of Harford County or any general obligation bonds of the State shall be accepted as sufficient collateral for the deposit of any money of Harford County.</text> </section> <section article="glg" article_name="Local Government" number="19-201" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Bond” means an obligation for the payment of money, by whatever name known or source of funds secured, issued by a governmental entity under general or special statutory authority.</text> </level> <level label="2"> <text>“Bond” includes:</text> <level label="i"> <text>a bond;</text> </level> <level label="ii"> <text>a certificate of indebtedness;</text> </level> <level label="iii"> <text>an interim certificate; and</text> </level> <level label="iv"> <text>a note.</text> </level> </level> </level> <level label="c"> <text>“Enabling act” means a law that authorizes a governmental entity to create a debt and sell bonds to evidence that debt.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-204" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>This section applies only to the following governmental entities:</text> <level label="1"> <text>a county;</text> </level> <level label="2"> <text>a municipality;</text> </level> <level label="3"> <text>a public corporation of the State;</text> </level> <level label="4"> <text>a sanitary commission or district; and</text> </level> <level label="5"> <text>a unit, public corporation, or other instrumentality of a county or a municipality.</text> </level> </level> <level label="b"> <text>Notwithstanding any other law, a governmental entity authorized to issue bonds may issue bonds in a form that qualifies as a registered form under §§ 103 and 149 of the Internal Revenue Code or a regulation adopted under those sections.</text> </level> <level label="c"> <text>Whenever a governmental entity provides for the sale of bonds in registered form, the governmental entity may:</text> <level label="1"> <text>establish procedures for the registration and transfer of the bonds;</text> </level> <level label="2"> <text>appoint any agent, including an authenticating trustee, corporate trustee, paying agent, registrar, or transfer agent;</text> </level> <level label="3"> <text>in connection with the establishment and maintenance of a central depository system for the transfer or pledge of the bonds, make agreements with:</text> <level label="i"> <text>custodian banks and their nominees; or</text> </level> <level label="ii"> <text>financial intermediaries and their nominees; and</text> </level> </level> <level label="4"> <text>exercise any other power that relates to issuance of bonds in registered form.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-205" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, this section applies only to the following governmental entities:</text> <level label="i"> <text>a county;</text> </level> <level label="ii"> <text>a public corporation or other political subdivision of the State; or</text> </level> <level label="iii"> <text>an instrumentality or agency of a county, public corporation, or other political subdivision of the State.</text> </level> </level> <level label="2"> <text>This section does not apply to the following governmental entities:</text> <level label="i"> <text>Baltimore City;</text> </level> <level label="ii"> <text>a municipality; or</text> </level> <level label="iii"> <text>a housing authority under Division II of the Housing and Community Development Article.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>This section does not apply if the total principal amount of the authorized issue is $25,000 or less.</text> </level> <level label="2"> <text>This section does not apply to a bond that:</text> <level label="i"> <text>matures within 1 year after the date of issue and is issued:</text> <level label="1"> <text>in anticipation of taxes;</text> </level> <level label="2"> <text>to meet current expenses; or</text> </level> <level label="3"> <text>to meet an emergency;</text> </level> </level> <level label="ii"> <text>is sold to the United States or a unit or instrumentality of the United States;</text> </level> <level label="iii"> <text>is issued under a plan of composition approved in a proceeding under Chapter IX of the United States Bankruptcy Act; or</text> </level> <level label="iv"> <text>is issued under any other plan to refund or refinance in exchange, bond for bond, for an outstanding maturing debt, other than:</text> <level label="1"> <text>a current or floating debt; or</text> </level> <level label="2"> <text>a bond under item (i) of this paragraph.</text> </level> </level> </level> <level label="3"> <text>This section does not apply if:</text> <level label="i"> <text>the proceeds of the sale of bonds are to be used with a grant from the United States or a unit or instrumentality of the United States to finance public works; and</text> </level> <level label="ii"> <text>in the opinion of the Attorney General, the agreement or other writing referring to the grant conditions the grant on the prior execution, by the governmental entity and a prospective buyer, of a contract for the sale of the bonds when issued.</text> </level> </level> <level label="4"> <text>This section does not apply to bond or grant anticipation notes issued under Part III of this subtitle.</text> </level> <level label="5"> <text>This section does not apply to a bond issued under an enabling act that:</text> <level label="i"> <text>states that this section does not apply; or</text> </level> <level label="ii"> <text>provides a different method for the sale of the bonds.</text> </level> </level> </level> <level label="c"> <text>A governmental entity shall offer bonds at a public sale.</text> </level> <level label="d"> <level label="1"> <text>A governmental entity shall give notice of a public sale of bonds at least twice in at least one newspaper of general circulation in the area in which the governmental entity is located.</text> </level> <level label="2"> <text>The first publication shall appear at least 10 days before the date of the sale.</text> </level> <level label="3"> <text>The notice shall:</text> <level label="i"> <text>be in the form required in the ordinance or resolution that authorizes the issuance of the bonds;</text> </level> <level label="ii"> <text>state the date, time, and place of the public sale;</text> </level> <level label="iii"> <text>reference the enabling act that authorized the bonds;</text> </level> <level label="iv"> <text>state the date of issue;</text> </level> <level label="v"> <text>state the total principal amount;</text> </level> <level label="vi"> <text>state the schedule of maturities;</text> </level> <level label="vii"> <text>state the interest payable or the manner of determining the interest;</text> </level> <level label="viii"> <text>state the purpose for which the proceeds will be used;</text> </level> <level label="ix"> <text>describe the general form of the bonds, including whether the bonds will be:</text> <level label="1"> <text>in coupon or registered form; and</text> </level> <level label="2"> <text>registrable as to principal or interest or both;</text> </level> </level> <level label="x"> <text>state that each bid must be made in writing by sealed proposal; and</text> </level> <level label="xi"> <text>state the amount of the good faith deposit that the governmental entity has determined must accompany the bid.</text> </level> </level> <level label="4"> <text>The notice may reserve to the governmental entity the right to reject any or all bids.</text> </level> </level> <level label="e"> <text>Except as provided in subsection (f) of this section, the governmental entity shall sell the bonds to the highest bidder or bidders at the public sale.</text> </level> <level label="f"> <level label="1"> <text>If the governmental entity has reserved the right to reject bids and does reject all bids, the governmental entity, within 30 days after rejecting all the bids, may sell the bonds at a private sale for not less than the highest amount bid by an acceptable bidder at the public sale.</text> </level> <level label="2"> <text>If the governmental entity fails to sell the bonds at a private sale within the 30–day period under paragraph (1) of this subsection, the governmental entity may sell the bonds only at another public sale after notice as required in subsection (d) of this section.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-206" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, this section applies only to the following governmental entities:</text> <level label="i"> <text>a county;</text> </level> <level label="ii"> <text>a public corporation or other political subdivision of the State; or</text> </level> <level label="iii"> <text>an agency or instrumentality of a county, public corporation, or other political subdivision of the State.</text> </level> </level> <level label="2"> <text>This section does not apply to the following governmental entities:</text> <level label="i"> <text>Baltimore City;</text> </level> <level label="ii"> <text>a municipality; or</text> </level> <level label="iii"> <text>a housing authority under Division II of the Housing and Community Development Article.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>This section does not apply to a bond that:</text> <level label="i"> <text>matures within 1 year after the date of issue and is issued:</text> <level label="1"> <text>in anticipation of taxes;</text> </level> <level label="2"> <text>to meet current expenses; or</text> </level> <level label="3"> <text>to meet an emergency;</text> </level> </level> <level label="ii"> <text>is sold to the United States or a unit or instrumentality of the United States;</text> </level> <level label="iii"> <text>is issued under a plan of composition approved in a proceeding under Chapter IX of the United States Bankruptcy Act; or</text> </level> <level label="iv"> <text>is issued under any other plan to refund or refinance in exchange, bond for bond, for an outstanding maturing debt, other than:</text> <level label="1"> <text>a current or floating debt; or</text> </level> <level label="2"> <text>a bond under item (i) of this paragraph.</text> </level> </level> </level> <level label="2"> <text>This section does not apply to bond or grant anticipation notes issued under Part III of this subtitle.</text> </level> <level label="3"> <text>This section does not apply to a bond issued under an enabling act that:</text> <level label="i"> <text>states that this section does not apply; or</text> </level> <level label="ii"> <text>provides a different method for establishing the maturity of the bond.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A governmental entity shall issue bonds on a serial maturity plan.</text> </level> <level label="2"> <text>The governmental entity may:</text> <level label="i"> <text>vary the amounts of the series; and</text> </level> <level label="ii"> <text>provide for the maturity of a series in consecutive annual installments or at longer intervals.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The maturity date of the final series shall be based on the purpose for which the bonds are issued:</text> <level label="i"> <text>within the time limit that applies under the schedule in paragraph (2) of this subsection; or</text> </level> <level label="ii"> <text>if more than one time limit applies, within the shortest applicable time limit.</text> </level> </level> <level label="2"> <text>The schedule of maturity dates is as follows:</text> <text>Limit on Purpose of Issue Maturity of Issue</text> <text>Paving existing highways or streets 10 years</text> <text>Airports and buildings constructed or to be constructed thereon 15 years</text> <text>Highway construction 20 years</text> <text>Electric light and power systems 25 years</text> <text>Gas systems 25 years</text> <text>Grade crossing eliminations 25 years</text> <text>Harbor improvements 25 years</text> <text>School construction 25 years</text> <text>All other permanent structures of durable materials 25 years</text> <text>Bridges 30 years</text> <text>Land acquired for permanent improvements 40 years</text> <text>Sewerage installation 40 years</text> <text>Water systems 40 years</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-207" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>This section applies only to the following governmental entities:</text> <level label="1"> <text>a county;</text> </level> <level label="2"> <text>a municipality;</text> </level> <level label="3"> <text>a public corporation of the State;</text> </level> <level label="4"> <text>a sanitary commission or district, but not including the Washington Suburban Sanitary Commission; and</text> </level> <level label="5"> <text>a unit, public corporation, or other instrumentality of a county or municipality.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to the limitations in this section, a governmental entity authorized to issue bonds may issue new bonds to refund its outstanding bonds.</text> </level> <level label="2"> <text>A single county, bicounty, or multicounty agency or instrumentality may not issue refunding bonds without the prior approval of the governing body of each county involved.</text> </level> </level> <level label="c"> <level label="1"> <text>The power to issue bonds under this section is in addition to any other power to borrow.</text> </level> <level label="2"> <text>If bonds to be refunded are secured as unconditional general obligations with a pledge of the full faith and credit and unlimited taxing power of the governmental entity, the governmental entity may secure an issue of refunding bonds as unconditional general obligations with a pledge of the full faith and credit and unlimited taxing power of the governmental entity in the same manner and, with respect to the application of any public general and public local law and otherwise, with the same force and effect as the original pledge.</text> </level> </level> <level label="d"> <text>A governmental entity may issue bonds under this section only for the public purpose of:</text> <level label="1"> <text>realizing for the governmental entity a savings in the total cost of debt service on a direct comparison or present value basis;</text> </level> <level label="2"> <text>debt restructuring that reduces the total cost of debt service; or</text> </level> <level label="3"> <text>debt restructuring that the governmental entity determines:</text> <level label="i"> <text>is in its best interests;</text> </level> <level label="ii"> <text>is consistent with its long–term financial plan; and</text> </level> <level label="iii"> <text>realizes a financial objective of the governmental entity, including improvement of the relationship of debt service to any source of payment such as taxes, assessments, or other charges.</text> </level> </level> </level> <level label="e"> <text>A governmental entity may:</text> <level label="1"> <text>provide that bonds under this section be in one or more series; and</text> </level> <level label="2"> <text>vary the amount of the series.</text> </level> </level> <level label="f"> <level label="1"> <text>The total principal amount of the bonds issued under this section may exceed the total principal amount of the bonds that are being refunded.</text> </level> <level label="2"> <text>To determine whether the bonds under this section are within any limit on debt that applies to the governmental entity:</text> <level label="i"> <text>the amount of the bonds that are being refunded shall be subtracted from its total outstanding debt; and</text> </level> <level label="ii"> <text>the amount of the bonds issued under this section shall be added to the difference.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>Except as provided in paragraphs (2) and (3) of this subsection, a governmental entity shall issue bonds under this section in accordance with the procedures that applied to issuance of the bonds that are being refunded.</text> </level> <level label="2"> <text>If, at a public meeting, the governmental entity determines that it would be in the public interest, the governmental entity may sell bonds issued under this section at a private sale, without soliciting bids.</text> </level> <level label="3"> <text>Baltimore City may issue bonds to the extent authorized by the Maryland Constitution, to refund obligations previously issued in accordance with the procedures set forth in Article XI, § 7 of the Maryland Constitution without repeating or further complying with those procedures in the issuance of the refunding bonds.</text> </level> </level> <level label="h"> <text>Bonds that are being refunded and that are subject to redemption before their stated dates of maturity may be called for redemption:</text> <level label="1"> <text>on the earliest redemption date; or</text> </level> <level label="2"> <text>at a later date that the governmental entity determines.</text> </level> </level> <level label="i"> <level label="1"> <text>A governmental entity shall invest and apply proceeds of a sale of bonds issued under this section to ensure that the principal and redemption premium of, and interest on, the bonds that are being refunded will be paid in full when due.</text> </level> <level label="2"> <text>The governmental entity may deposit any part of the proceeds of the sale of bonds issued under this section in a trust fund with a trust company or other banking institution, in the name of the governmental entity.</text> </level> <level label="3"> <text>The trustee may invest and reinvest money in the trust fund in:</text> <level label="i"> <text>obligations of the United States;</text> </level> <level label="ii"> <text>obligations guaranteed by the United States;</text> </level> <level label="iii"> <text>certificates of deposit or time deposits secured by an obligation of the United States; or</text> </level> <level label="iv"> <text>certificates of deposit or time deposits secured by an obligation guaranteed by the United States.</text> </level> </level> <level label="4"> <text>Interest, income, and profits on the investment may be:</text> <level label="i"> <text>considered to be revenue of a revenue project; and</text> </level> <level label="ii"> <text>applied in any lawful manner, including to the payment of:</text> <level label="1"> <text>the bonds that are being refunded; and</text> </level> <level label="2"> <text>the bonds issued under this section.</text> </level> </level> </level> <level label="5"> <text>The trustee shall make money in the trust fund available, as the governmental entity requires, for the payment of:</text> <level label="i"> <text>the principal and redemption premium of, and interest on, the bonds that are being refunded;</text> </level> <level label="ii"> <text>the principal and redemption premium of, and interest on, the bonds issued under this section; or</text> </level> <level label="iii"> <text>any other related costs.</text> </level> </level> </level> <level label="j"> <text>All or any part of the bonds issued under this section may be made payable from and secured by:</text> <level label="1"> <text>money in the trust fund; or</text> </level> <level label="2"> <text>other money or security that the governmental entity provides.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-208" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, this section applies only to the following governmental entities:</text> <level label="i"> <text>a county;</text> </level> <level label="ii"> <text>a municipality;</text> </level> <level label="iii"> <text>a public corporation of the State; and</text> </level> <level label="iv"> <text>a political subdivision or an agency or instrumentality of a political subdivision of the State.</text> </level> </level> <level label="2"> <text>This section does not apply to Baltimore City.</text> </level> </level> <level label="b"> <text>A governmental entity authorized to issue bonds:</text> <level label="1"> <text>subject to the limitations in this section and notwithstanding any other law, if the governmental entity determines that it is in the public interest, may issue and sell bonds in denominations of $1,000 or less, in any form;</text> </level> <level label="2"> <text>may sell the bonds in integral multiples; and</text> </level> <level label="3"> <text>subject to any other provision of law, may set the prices for and the interest rates to be paid on the bonds.</text> </level> </level> <level label="c"> <level label="1"> <text>A governmental entity may not have bonds outstanding under this section in excess of a total principal amount of the greater of:</text> <level label="i"> <text>$1,000,000; or</text> </level> <level label="ii"> <text>10% of the total outstanding bonded indebtedness of the governmental entity at the time the bonds are issued.</text> </level> </level> <level label="2"> <text>The total debts of a governmental entity, including bonds under this section, may not exceed a limit set by law.</text> </level> </level> <level label="d"> <text>A governmental entity may sell bonds issued under this section in any manner that the governmental entity considers appropriate, notwithstanding §§ 19–205 and 19–206 of this subtitle or any other law that requires the solicitation of competitive bids or the public sale of bonds to the highest bidder or bidders or that regulates the manner in which the sale shall be advertised or the bonds sold.</text> </level> <level label="e"> <level label="1"> <text>A governmental entity that issues bonds under this section shall approve a disclosure document that includes:</text> <level label="i"> <text>a description of the security for the bonds;</text> </level> <level label="ii"> <text>a statement of the purposes for which the proceeds of the bonds will be used;</text> </level> <level label="iii"> <text>a description of the financial condition of the governmental entity;</text> </level> <level label="iv"> <text>a statement of the prices for and the interest rates to be paid on the bonds; and</text> </level> <level label="v"> <text>a statement of the times and places of payment of the principal of and interest on the bonds.</text> </level> </level> <level label="2"> <text>A governmental entity shall make the disclosure document available to buyers of the bonds.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-211" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>Except as provided in subsection (b) of this section, this part applies only to the following governmental entities:</text> <level label="1"> <text>a county;</text> </level> <level label="2"> <text>a municipality;</text> </level> <level label="3"> <text>a public corporation or other political subdivision of the State; or</text> </level> <level label="4"> <text>an instrumentality or agency of a county, public corporation, or other political subdivision of the State.</text> </level> </level> <level label="b"> <text>This part does not apply to a housing authority under Division II of the Housing and Community Development Article.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-212" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>A governmental entity authorized to issue bonds may issue and sell bond anticipation notes if, in the ordinance, resolution, or other form of official action that authorizes the notes, the governmental entity covenants to:</text> <level label="1"> <text>pay from the proceeds of the bonds in anticipation of the sale of which the notes are issued:</text> <level label="i"> <text>the principal of the notes; and</text> </level> <level label="ii"> <text>to the extent that the interest on the notes is not paid from the proceeds of the sale of the notes, the interest on the notes; and</text> </level> </level> <level label="2"> <text>issue the bonds as soon as there is no longer a reason for deferring their issuance.</text> </level> </level> <level label="b"> <text>A governmental entity may issue and sell grant anticipation notes in anticipation of the receipt of a grant from the United States, the State, or any of their units if, in the ordinance, resolution, or other form of official action that authorizes the notes, the governmental entity covenants to pay from the proceeds of the grant in anticipation of the receipt of which the notes are issued:</text> <level label="1"> <text>the principal of the notes; and</text> </level> <level label="2"> <text>the interest on the notes.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-213" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>Bond and grant anticipation notes issued under this part shall be authorized by ordinance, resolution, or other form of official action customarily used by the governmental entity.</text> </level> <level label="b"> <level label="1"> <text>The ordinance, resolution, or other form of official action that authorizes the bond or grant anticipation notes shall state:</text> <level label="i"> <text>the authority for the notes and, if the notes are bond anticipation notes, the authority for the bonds;</text> </level> <level label="ii"> <text>the amount of notes authorized; and</text> </level> <level label="iii"> <text>the terms of the notes.</text> </level> </level> <level label="2"> <text>The ordinance, resolution, or other form of official action shall specify that the notes:</text> <level label="i"> <text>be sold in a certain manner, at public sale or, if the governmental entity considers private negotiation to be in its best interest, at private sale;</text> </level> <level label="ii"> <text>mature at certain times;</text> </level> <level label="iii"> <text>bear interest at certain rates or at rates to be determined in the manner stated in the ordinance, resolution, or other form of official action; and</text> </level> <level label="iv"> <text>be sold for certain prices or for prices to be determined in the manner stated in the ordinance, resolution, or other form of official action, which may be at, above, or below par.</text> </level> </level> <level label="3"> <text>The ordinance, resolution, or other form of official action may provide that the notes:</text> <level label="i"> <text>be in one or more series, as money is required; and</text> </level> <level label="ii"> <text>be renewable at maturity with or without resale.</text> </level> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-214" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>A governmental entity may not issue bond anticipation notes under this part in a total principal amount that exceeds the authorized amount of the bonds in anticipation of the sale of which the notes are issued and sold.</text> </level> <level label="b"> <text>A governmental entity may not issue grant anticipation notes under this part in a total amount, including interest, that exceeds the amount of the grant in anticipation of the receipt of which the notes are issued and sold.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-215" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <text>Grant anticipation notes may not be sold under this part until the governmental entity receives from the grantor a written commitment for the grant.</text> </section> <section article="glg" article_name="Local Government" number="19-216" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>A bond anticipation note may not be issued under this part unless it is signed, endorsed, or guaranteed in the manner required by law for the bonds in anticipation of which the note is issued.</text> </level> <level label="b"> <text>A bond or grant anticipation note is valid and binding in accordance with its terms notwithstanding that:</text> <level label="1"> <text>an official whose signature appears on the note is no longer an official when the note is delivered; or</text> </level> <level label="2"> <text>an official whose signature appears on the note became an official after the note was issued.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-217" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <level label="1"> <text>The principal of and interest on bond anticipation notes under this part shall be payable from:</text> <level label="i"> <text>the first proceeds of sale of the bonds; or</text> </level> <level label="ii"> <text>the tax or other revenue that the governmental entity has pledged to the payment of the bonds.</text> </level> </level> <level label="2"> <text>One year’s interest on the notes, or on any renewal of the notes, accounting from the date of the initial issue of the notes, may be paid from the proceeds of sale of the notes.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraphs (2) and (3) of this subsection, the principal of and interest on grant anticipation notes under this part shall be payable from the proceeds of the grant.</text> </level> <level label="2"> <text>The governmental entity may make the grant anticipation notes payable only from the proceeds of the grant and need not pledge the faith and credit or taxing power of the governmental entity.</text> </level> <level label="3"> <text>If the governmental entity does not pledge its faith and credit or taxing power, the grant anticipation notes are not a debt or charge against the general credit or taxing power of the governmental entity under any constitutional provision, charter provision, or statutory limitation.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-218" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <text>The proceeds of sale of bond anticipation notes shall be spent:</text> <level label="1"> <text>first, for payment of the expenses of issuance of the notes; and</text> </level> <level label="2"> <text>then, subject to § 19–217(a)(2) of this subtitle, only for the public purposes for which the bonds are authorized.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-219" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <level label="1"> <text>Except for the provisions of this section, each governmental entity shall comply with the provisions, requirements, and limitations in the enabling act.</text> </level> <level label="2"> <text>If a governmental entity is unable to sell bonds to pay the bond anticipation notes under this part when due because of an interest rate limitation in the enabling act, the governmental entity may:</text> <level label="i"> <text>issue bonds in a total principal amount sufficient to pay the principal of and not more than 1 year’s interest on the notes; and</text> </level> <level label="ii"> <text>provide for payment of interest on the bonds at a rate that is higher than the interest rate limitation in the enabling act.</text> </level> </level> <level label="3"> <text>This section is supplemental authority for a governmental entity to issue bonds free of an interest rate limitation to pay outstanding bond anticipation notes under this part.</text> </level> </level> <level label="b"> <text>The ordinance, resolution, or other form of official action that authorizes the issuance of bonds under subsection (a)(2) of this section shall refer to:</text> <level label="1"> <text>the enabling act; and</text> </level> <level label="2"> <text>this section.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-220" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>A governmental entity may issue bond or grant anticipation notes under this part as notes in the nature of commercial paper.</text> </level> <level label="b"> <text>A bond or grant anticipation note issued as a note in the nature of commercial paper may be secured by:</text> <level label="1"> <text>a trust indenture with a trust company, or a bank with powers of a trust company, in or outside the State; and</text> </level> <level label="2"> <text>a letter of credit, line of credit, or other credit arrangement from or with a lending institution.</text> </level> </level> <level label="c"> <level label="1"> <text>For bond anticipation notes, the credit arrangement may be made payable out of:</text> <level label="i"> <text>the first proceeds of sale of the bonds; or</text> </level> <level label="ii"> <text>the tax or other revenue that the governmental entity has pledged to payment of the principal of and interest on the bonds.</text> </level> </level> <level label="2"> <text>For grant anticipation notes, the credit arrangement may be made payable out of the proceeds of the grant.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-221" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <text>The following obligations are exempt from State and local taxation:</text> <level label="1"> <text>a bond or grant anticipation note issued under this part;</text> </level> <level label="2"> <text>a bond issued to pay the notes issued under item (1) of this section; and</text> </level> <level label="3"> <text>the interest on the obligations.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-224" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>This section applies only to the following governmental entities:</text> <level label="1"> <text>a county;</text> </level> <level label="2"> <text>a municipality;</text> </level> <level label="3"> <text>a public corporation or other political subdivision of the State; and</text> </level> <level label="4"> <text>any instrumentality or agency of a county, municipality, public corporation, or other political subdivision of the State.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>the ordinance, resolution, or other authority under which the bond is issued limits payment of principal and interest to:</text> <level label="1"> <text>the proceeds of limited sources of revenue; or</text> </level> <level label="2"> <text>a special fund established for that purpose;</text> </level> </level> <level label="iii"> <text>any law limits payment of principal and interest to a certain amount or rate of tax that may be imposed; or</text> </level> <level label="iv"> <text>principal or interest are registrable.</text> </level> </level> </level> <level label="c"> <text>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:</text> <level label="1"> <text>issued on the full faith and credit of the governmental entity;</text> </level> <level label="2"> <text>payable to bearer; and</text> </level> <level label="3"> <text>secured as to the payment of principal and interest by the unlimited taxing power of the governmental entity.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-227" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Chief executive officer” means the county executive, mayor, president, chairman, or similar official of a governmental entity.</text> </level> <level label="c"> <text>“Financial officer” means the controller, the director of finance, or similar official of a governmental entity.</text> </level> <level label="d"> <text>“Internal Revenue Code” means the Internal Revenue Code of 1986 and includes regulations and rulings issued under that Code.</text> </level> <level label="e"> <level label="1"> <text>“Proceeds” means money received from the sale of bonds.</text> </level> <level label="2"> <text>“Proceeds” includes any money deemed to be proceeds of bonds under the Internal Revenue Code.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-228" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <text>This part applies only to the following governmental entities:</text> <level label="1"> <text>a county;</text> </level> <level label="2"> <text>a municipality;</text> </level> <level label="3"> <text>a public corporation of the State;</text> </level> <level label="4"> <text>a sanitary commission or district; and</text> </level> <level label="5"> <text>a unit, public corporation, or other instrumentality of a county or a municipality.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-229" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>The financial officer may establish and maintain funds and accounts for the administration, management, investment, and accounting of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate to comply with the Internal Revenue Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on the bonds.</text> </level> <level label="b"> <level label="1"> <text>The financial officer may manage and invest proceeds, including any investment earnings on proceeds, in a manner so as to maintain the exclusion from gross income for federal income tax purposes of interest on the bonds.</text> </level> <level label="2"> <text>The financial officer may restrict the yields on investments of proceeds if and to the extent necessary to maintain the exclusion from gross income for federal income tax purposes of interest on the bonds.</text> </level> </level> <level label="c"> <text>The financial officer may prepare and maintain records of the receipt, deposit, investment, management, disbursement, and application of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate from time to time to comply with the Internal Revenue Code and to maintain or verify the exclusion from gross income for federal income tax purposes of interest on the bonds.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-230" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>The financial officer may establish a separate rebate fund to be used to make any payments to the United States with respect to investment earnings on proceeds that may be required by the Internal Revenue Code.</text> </level> <level label="b"> <text>There may be separate accounts within the rebate fund.</text> </level> <level label="c"> <text>Amounts deposited to the rebate fund shall be used only for the purpose of making rebate payments, and no appropriation will be required before payment of any required rebates from the rebate fund to the United States.</text> </level> <level label="d"> <text>The financial officer may make payments from the rebate fund as required in order to:</text> <level label="1"> <text>comply with the Internal Revenue Code; and</text> </level> <level label="2"> <text>maintain the exclusion from gross income for federal income tax purposes of interest on the bonds.</text> </level> </level> <level label="e"> <text>Any excess money held in the rebate fund with respect to an issue of bonds after all required rebate payments for that issue have been made, as certified by the financial officer, shall be applied in a manner consistent with the Internal Revenue Code.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-231" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <text>The financial officer may prepare and file with the appropriate agency of the United States any forms, information, and reports with respect to the bonds and the expenditure and investment of proceeds that may be required under the Internal Revenue Code.</text> </section> <section article="glg" article_name="Local Government" number="19-232" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <text>For purposes of doing whatever is necessary or appropriate to comply with the Internal Revenue Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on the bonds, the financial officer and the chief executive officer may each:</text> <level label="1"> <text>take any other or further actions;</text> </level> <level label="2"> <text>enter into any agreement or covenant regarding the use of proceeds, including any investment earnings on proceeds, the deposit of money to the rebate fund, and the making of rebate payments; and</text> </level> <level label="3"> <text>provide certifications of facts and estimates.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-233" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <text>This part does not prevent the governing authority of a governmental entity from authorizing the issuance and sale of bonds the interest on which is not excludable from gross income for federal income tax purposes.</text> </section> <section article="glg" article_name="Local Government" number="19-236" title_number="19" title_name="Public Debt" subtitle_number="2" subtitle_name="Public Securities"> <level label="a"> <text>Notwithstanding any other law and in addition to any other authority, to improve the management of debt service or interest rate risks on its bonds or to reduce the cost of servicing its bonds, the governing body of a county may enact, by local law or resolution, authority for the county to:</text> <level label="1"> <text>enter into interest rate exchange agreements providing for payments based on levels of or changes in interest rates; and</text> </level> <level label="2"> <text>appoint any agents necessary to implement and administer the agreements.</text> </level> </level> <level label="b"> <level label="1"> <text>A county that proposes to enter into one or more interest rate exchange agreements shall enact a local law or resolution that authorizes the transaction on the terms and conditions established by the county in the local law or resolution.</text> </level> <level label="2"> <level label="i"> <text>In the local law or resolution that authorizes the transaction or in a separate resolution, the county may provide for the final form and the final terms and provisions of the agreement, after giving due consideration to the creditworthiness of the counterparty.</text> </level> <level label="ii"> <text>The county may delegate to an officer, an official, a board, or an agency of the county specified in the local law or resolution the power to provide for the final form and the final terms and provisions of the agreement, after giving due consideration to the creditworthiness of the counterparty.</text> </level> </level> </level> <level label="c"> <text>An interest rate exchange agreement may be entered into in connection with, or incidental to, any bonds of the county.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-301" title_number="19" title_name="Public Debt" subtitle_number="3" subtitle_name="Creation of Public Debt -- Municipalities"> <level label="a"> <text>In its charter, each municipality may provide a procedure to borrow money for any public purpose that is different from the procedure described in this subtitle.</text> </level> <level label="b"> <text>If a conflict exists between this subtitle and the charter of a municipality, the charter controls.</text> </level> <level label="c"> <text>Notwithstanding this subtitle or the charter of the municipality, each municipality may exercise all powers granted to municipalities under Title 9 of the Environment Article.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-302" title_number="19" title_name="Public Debt" subtitle_number="3" subtitle_name="Creation of Public Debt -- Municipalities"> <level label="a"> <text>A municipality may:</text> <level label="1"> <text>borrow money for any public purpose; and</text> </level> <level label="2"> <text>issue and sell general obligation bonds to evidence the borrowing.</text> </level> </level> <level label="b"> <text>In its charter, a municipality may provide for the issuance of revenue bonds payable as to principal and interest solely from the revenues of one or more revenue–producing projects of the municipality.</text> </level> <level label="c"> <level label="1"> <text>Unless the charter of the municipality provides otherwise, in anticipation of the receipt of current taxes, a municipality may:</text> <level label="i"> <text>borrow money for any public purpose; and</text> </level> <level label="ii"> <text>issue and sell tax anticipation notes to evidence the borrowing.</text> </level> </level> <level label="2"> <text>The municipality shall pay the principal of and interest on tax anticipation notes when current taxes are received.</text> </level> <level label="3"> <text>Tax anticipation notes:</text> <level label="i"> <text>shall be issued in accordance with § 19–303 of this subtitle; but</text> </level> <level label="ii"> <text>may be sold by private negotiations.</text> </level> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-303" title_number="19" title_name="Public Debt" subtitle_number="3" subtitle_name="Creation of Public Debt -- Municipalities"> <level label="a"> <text>The issuance of all bonds of a municipality shall be authorized by a resolution adopted or an ordinance enacted by the legislative body of the municipality.</text> </level> <level label="b"> <level label="1"> <text>A resolution or an ordinance authorizing municipal bonds shall contain:</text> <level label="i"> <text>a statement of the public purpose for which the bond proceeds are to be spent;</text> </level> <level label="ii"> <text>the form of the bonds, including:</text> <level label="1"> <text>the place at which the bonds will be payable;</text> </level> <level label="2"> <text>the time at which the bonds will be payable;</text> </level> <level label="3"> <text>the interest rate on the bonds or a space to insert the interest rate when determined;</text> </level> <level label="4"> <text>the title of each official whose signature must be affixed to or imprinted on the bonds;</text> </level> <level label="5"> <text>the authority for issuance of the bonds; and</text> </level> <level label="6"> <text>the revenues from which the principal of and interest on the bonds will be payable;</text> </level> </level> <level label="iii"> <text>specific provision for the appropriation and disposal of the bond proceeds;</text> </level> <level label="iv"> <text>specific provision for the payment of the principal of and interest on the bonds, including the source of payment; and</text> </level> <level label="v"> <text>the form of the notice soliciting bids for the purchase of the bonds, including:</text> <level label="1"> <text>the date, place, and time for receiving and opening bids;</text> </level> <level label="2"> <text>a brief description of the purpose for which the bonds will be issued;</text> </level> <level label="3"> <text>a brief description of the denominations, maturities, terms, and conditions of the bonds;</text> </level> <level label="4"> <text>a statement of the interest rate of the bonds or the manner of determining the rate;</text> </level> <level label="5"> <text>a precise statement of the manner in which the best offer for the bonds will be determined; and</text> </level> <level label="6"> <text>a reference to the resolution or ordinance authorizing the bonds.</text> </level> </level> </level> <level label="2"> <text>The provision made for payment of the bonds under paragraph (1)(iv) of this subsection is a covenant binding the municipality to provide money from the source described to pay the principal of and interest on the bonds when due.</text> </level> </level> <level label="c"> <level label="1"> <text>A resolution or an ordinance authorizing any municipal bonds may contain any other provision not inconsistent with this subtitle that the legislative body of the municipality considers appropriate, including a provision that:</text> <level label="i"> <text>the principal of and interest on the bonds shall be payable at one or more banks or trust companies in or outside the State;</text> </level> <level label="ii"> <text>except for the signature of the clerk or secretary which must be manually affixed, the signatures of officials of the municipality and official seals to be affixed to the bonds or any coupons attached to the bonds shall be imprinted on the bonds or coupons in facsimile;</text> </level> <level label="iii"> <text>at the option of the municipality, some or all of the bonds shall be made redeemable before maturity, at or above par value as required in the enabling resolution or ordinance if:</text> <level label="1"> <text>the bonds contain a statement of the redemption provisions; and</text> </level> <level label="2"> <text>the enabling resolution or ordinance provides for published notice before a redemption;</text> </level> </level> <level label="iv"> <text>the issue of bonds shall be in varying denominations and in coupon form registrable as to principal only, in fully registered form, or both forms if they are interchangeable; and</text> </level> <level label="v"> <text>a bond is a valid and binding obligation of the municipality in accordance with the terms of the bond even if an official whose signature appears on the bond:</text> <level label="1"> <text>ceases to be an official before the delivery of the bond; or</text> </level> <level label="2"> <text>becomes an official after the date of issue of the bond.</text> </level> </level> </level> <level label="2"> <text>Each resolution or ordinance may authorize the executive of the municipality to modify the forms adopted by the resolution or ordinance if the modifications do not alter the substance of the forms.</text> </level> </level> <level label="d"> <level label="1"> <text>The notice soliciting bids for the purchase of the bonds may:</text> <level label="i"> <text>require prospective purchasers to submit bids on specified forms;</text> </level> <level label="ii"> <text>require prospective purchasers to accompany their bids with good faith deposits in specified amounts;</text> </level> <level label="iii"> <text>provide for approval of the legality of the bonds; and</text> </level> <level label="iv"> <text>contain a financial statement of the municipality.</text> </level> </level> <level label="2"> <text>The provisions in paragraph (1) of this subsection may be included in the notice of sale or separately set forth in a circular or an official statement, the form of which must be adopted by a resolution or an ordinance of the municipality.</text> </level> </level> <level label="e"> <text>Unless the resolution, ordinance, or municipal charter requires a referendum, neither a resolution or an ordinance authorizing any bonds of a municipality nor the question of the issuance of the bonds need be submitted to referendum of the voters of the municipality.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-304" title_number="19" title_name="Public Debt" subtitle_number="3" subtitle_name="Creation of Public Debt -- Municipalities"> <level label="a"> <level label="1"> <text>A municipality may not issue bonds that mature later than 40 years after the date of issue.</text> </level> <level label="2"> <text>A municipality may not issue tax anticipation notes that mature later than 18 months after the date of issue.</text> </level> </level> <level label="b"> <text>A municipality may issue bonds and tax anticipation notes only for cash.</text> </level> <level label="c"> <text>A municipality may not sell bonds or tax anticipation notes at less than par value.</text> </level> <level label="d"> <level label="1"> <text>If the charter of a municipality requires a referendum on the issuance of municipal bonds, the bonds may be issued only if the bonds are approved by a majority of voters voting on the question.</text> </level> <level label="2"> <text>If the referendum fails, another referendum may not be held on the question of issuing bonds for the same public purpose until 1 year after the election.</text> </level> </level> <level label="e"> <text>A municipality may not sell bonds unless the municipality:</text> <level label="1"> <text>solicits competitive bids at a public sale; and</text> </level> <level label="2"> <text>publishes notice of the bond sale:</text> <level label="i"> <text>in the form required by the resolution or ordinance;</text> </level> <level label="ii"> <text>in a newspaper of general circulation in the municipality and any other publication that is specified in the resolution or ordinance; and</text> </level> <level label="iii"> <text>two times over a period of at least 10 days before the date specified for the bond sale.</text> </level> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-305" title_number="19" title_name="Public Debt" subtitle_number="3" subtitle_name="Creation of Public Debt -- Municipalities"> <text>All bonds and tax anticipation notes issued in accordance with the charter of a municipality or this subtitle shall be considered investment securities as provided in § 19–224 of this title. </text> </section> <section article="glg" article_name="Local Government" number="19-306" title_number="19" title_name="Public Debt" subtitle_number="3" subtitle_name="Creation of Public Debt -- Municipalities"> <text>The principal of and interest on bonds or tax anticipation notes issued in accordance with the charter of a municipality or this subtitle are exempt from State and local taxes. </text> </section> <section article="glg" article_name="Local Government" number="19-307" title_number="19" title_name="Public Debt" subtitle_number="3" subtitle_name="Creation of Public Debt -- Municipalities"> <level label="a"> <text>A fiscal officer of a municipality who has custody of a sinking fund established by the municipality to pay the principal of or the interest on bonds issued in accordance with the charter of the municipality or this subtitle may invest the sinking fund only as provided in § 19–102 of this title.</text> </level> <level label="b"> <text>A fiscal officer of a municipality who has custody of bond proceeds may invest the proceeds as provided in §§ 17–101 and 17–102 of this article.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-308" title_number="19" title_name="Public Debt" subtitle_number="3" subtitle_name="Creation of Public Debt -- Municipalities"> <level label="a"> <text>Except as provided in subsection (b) of this section, each bond or tax anticipation note issued in accordance with the charter of the municipality or this subtitle is a pledge of the full faith and credit of the municipality to the prompt payment, from the revenues described in the resolution or ordinance, of the principal of and interest on the bond or tax anticipation note when due.</text> </level> <level label="b"> <text>A revenue bond issued in accordance with the charter of the municipality is not a debt of the municipality to which its faith and credit or taxing power is pledged.</text> </level> <level label="c"> <level label="1"> <text>If at the time bonds are issued there is no charter or statutory limit on the power of the municipality to impose property taxes, the pledge under subsection (a) of this section is a covenant by the municipality to impose ad valorem taxes:</text> <level label="i"> <text>on all real and tangible personal property in the municipality that is subject to assessment for unlimited municipal taxation; and</text> </level> <level label="ii"> <text>at a rate and in an amount sufficient to pay the principal of and the interest on the bonds in each year in which any of the bonds are outstanding.</text> </level> </level> <level label="2"> <text>If at the time bonds are issued there is a charter or statutory limit on the power of the municipality to impose property taxes, the pledge under subsection (a) of this section is a covenant by the municipality to impose ad valorem taxes described in paragraph (1) of this subsection within the limits imposed by law.</text> </level> </level> <level label="d"> <text>A charter provision or a statute that establishes a maximum limit on the rate at which a municipality may impose property taxes, or that removes an existing limit, enacted after bonds are issued by the municipality does not affect the covenants of the municipality under subsection (c) of this section with respect to bonds outstanding on the effective date of the charter provision or statute.</text> </level> <level label="e"> <level label="1"> <text>A municipality may not issue a bond under the charter of the municipality or this subtitle if, by its issuance, the maximum limits on the power of the municipality to incur debt imposed by charter or statute will be exceeded.</text> </level> <level label="2"> <text>A maximum limit imposed after a bond is issued does not affect the municipality’s obligation on the bond.</text> </level> <level label="3"> <text>The obligation of a municipality on an outstanding bond is not affected by the issuance of a bond in accordance with an increase in the maximum limit on the power of the municipality to incur debt, or the removal of an existing maximum limit, enacted after the outstanding bond is issued.</text> </level> </level> <level label="f"> <level label="1"> <text>In addition to the pledge of its full faith and credit and taxing power to pay the principal of and interest on bonds, a municipality may secure the payment by the pledge of any other revenues, including:</text> <level label="i"> <text>payments to the municipality from the State or federal government; and</text> </level> <level label="ii"> <text>special benefit assessments, taxes, fees, or service charges.</text> </level> </level> <level label="2"> <text>To the extent that the additional revenues are sufficient in any year to pay the principal of and interest on the bonds to which they are pledged, the municipality is not obligated in that year to impose property taxes also pledged to pay the bonds.</text> </level> <level label="3"> <text>If the additional revenues are sufficient in any year to pay the principal of and interest on the bonds to which they are pledged, the failure of the municipality to impose property taxes in that year is not in breach of any of the municipal covenants described in subsection (c) of this section.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-309" title_number="19" title_name="Public Debt" subtitle_number="3" subtitle_name="Creation of Public Debt -- Municipalities"> <text>This subtitle does not impair any term or condition of any bond, note, or other obligation of a municipality issued by the municipality before Article XI–E of the Maryland Constitution took effect.</text> </section> <section article="glg" article_name="Local Government" number="19-401" title_number="19" title_name="Public Debt" subtitle_number="4" subtitle_name="Creation of Public Debt -- Charter Counties"> <text>Section 10–203 of this article applies to the creation of public debt by a charter county.</text> </section> <section article="glg" article_name="Local Government" number="19-501" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <text>In this subtitle, “public local law” has the meaning stated in Article XI–F, § 1 of the Maryland Constitution.</text> </section> <section article="glg" article_name="Local Government" number="19-502" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <text>This subtitle applies only to code counties.</text> </section> <section article="glg" article_name="Local Government" number="19-503" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <level label="a"> <text>A county may:</text> <level label="1"> <text>borrow money for any public purpose; and</text> </level> <level label="2"> <text>issue and sell general obligation bonds to evidence the borrowing.</text> </level> </level> <level label="b"> <text>By local law, a county may provide for the issuance of revenue bonds payable as to principal and interest solely from the revenues of one or more revenue–producing projects of the county.</text> </level> <level label="c"> <text>Notwithstanding any other provision of this subtitle, a county may issue bonds:</text> <level label="1"> <text>for sanitary facilities as provided in the Environment Article; and</text> </level> <level label="2"> <text>as authorized by local law in effect on the date the county adopts code home rule.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-504" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <level label="a"> <text>Except as provided in subsection (b) of this section, the issuance of all bonds of a county shall be authorized by public local law enacted in accordance with §§ 9–308 through 9–315 of this article.</text> </level> <level label="b"> <text>To issue bonds described in § 19–503(c) of this subtitle, a county:</text> <level label="1"> <text>need not enact a public local law; and</text> </level> <level label="2"> <text>shall comply with the law authorizing issuance of the bonds.</text> </level> </level> <level label="c"> <text>The public local law required under subsection (a) of this section shall contain:</text> <level label="1"> <text>a statement of:</text> <level label="i"> <text>the aggregate amount of bonds authorized by the public local law;</text> </level> <level label="ii"> <text>the public purpose for which the bond proceeds are to be spent; and</text> </level> <level label="iii"> <text>the revenues from which the principal of and interest on the bonds will be payable; and</text> </level> </level> <level label="2"> <text>a requirement that the county commissioners, before issuing any of the bonds, adopt a resolution containing the information specified in subsection (d) of this section.</text> </level> </level> <level label="d"> <level label="1"> <text>A resolution adopted under subsection (c)(2) of this section shall contain:</text> <level label="i"> <text>a statement of:</text> <level label="1"> <text>the amount of bonds to be issued; and</text> </level> <level label="2"> <text>the public purpose for which the bond proceeds are to be spent;</text> </level> </level> <level label="ii"> <text>the form of the bonds, including:</text> <level label="1"> <text>the place at which the bonds will be payable;</text> </level> <level label="2"> <text>the time at which the bonds will be payable;</text> </level> <level label="3"> <text>the interest rate on the bonds or a space to insert the interest rate when determined;</text> </level> <level label="4"> <text>the title of each official whose signature must be affixed to or imprinted on the bonds;</text> </level> <level label="5"> <text>the authority for issuance of the bonds; and</text> </level> <level label="6"> <text>the revenues from which the principal of and interest on the bonds will be payable;</text> </level> </level> <level label="iii"> <text>specific provision for the appropriation and disposal of the bond proceeds;</text> </level> <level label="iv"> <text>specific provision for the payment of the principal of and interest on the bonds, including the source of payment; and</text> </level> <level label="v"> <text>the form of the notice soliciting bids for the purchase of the bonds.</text> </level> </level> <level label="2"> <text>The provision made for payment of the bonds under paragraph (1)(iv) of this subsection is a covenant binding the county to provide money from the source described to pay the principal of and interest on the bonds when due.</text> </level> </level> <level label="e"> <level label="1"> <text>If the public local law authorizing the bonds does not exempt them from §§ 19–205 and 19–206 of this title, the form of the notice soliciting bids for the purchase of the bonds shall include the information required by § 19–205 of this title.</text> </level> <level label="2"> <text>The notice of sale also may:</text> <level label="i"> <text>require prospective purchasers to submit bids on specified forms;</text> </level> <level label="ii"> <text>provide for approval of the legality of the bonds; and</text> </level> <level label="iii"> <text>contain a financial statement of the county.</text> </level> </level> <level label="3"> <text>Any of the items under paragraph (2) of this subsection also may be separately set forth in a circular or official statement.</text> </level> </level> <level label="f"> <text>A resolution authorizing any bonds of a county may contain any other provision not inconsistent with this subtitle that the county commissioners consider appropriate, including a provision that:</text> <level label="1"> <text>the principal of and interest on the bonds shall be payable at one or more banks or trust companies in or outside the State;</text> </level> <level label="2"> <text>except for the signature of the clerk or secretary, which must be manually affixed, the signatures of officials of the county and official seals to be affixed to the bonds or any coupons attached to the bonds shall be imprinted on the bonds or coupons in facsimile;</text> </level> <level label="3"> <text>at the option of the county, some or all of the bonds shall be made redeemable, before maturity, at or above par value as required in the resolution if:</text> <level label="i"> <text>the bonds contain a statement of the redemption provisions; and</text> </level> <level label="ii"> <text>the resolution provides for published notice before a redemption;</text> </level> </level> <level label="4"> <text>the issue of bonds shall be in varying denominations and in coupon form registrable as to principal only, in fully registered form, or both forms if they are interchangeable; and</text> </level> <level label="5"> <text>a bond is a valid and binding obligation of the county in accordance with the terms of the bond even if an official whose signature appears on the bond:</text> <level label="i"> <text>ceases to be an official before the delivery of the bond; or</text> </level> <level label="ii"> <text>becomes an official after the date of issue of the bond.</text> </level> </level> </level> <level label="g"> <text>Subject to § 19–505(d) of this subtitle, neither a resolution authorizing any bonds of a county nor the question of the issuance of bonds authorized by the resolution need be submitted to referendum of the voters of the county.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-505" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <level label="a"> <text>A county may not issue bonds that mature later than 40 years after the date of issue.</text> </level> <level label="b"> <text>A county may issue bonds only for cash.</text> </level> <level label="c"> <text>A county may not sell bonds at less than par value.</text> </level> <level label="d"> <text>If a legally sufficient referendum petition on a public local law authorizing the issuance of bonds is properly filed with the county board of elections, the bonds may be issued only if the public local law is approved by a majority of the voters voting on the question.</text> </level> <level label="e"> <text>Any bonds sold by a county are subject to §§ 19–205 and 19–206 of this title, unless the public local law authorizing the bonds provides a specific exemption.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-506" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <text>Any bonds issued in accordance with this subtitle shall be considered investment securities as provided in § 19–224 of this title and Title 8 of the Maryland Uniform Commercial Code.</text> </section> <section article="glg" article_name="Local Government" number="19-507" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <text>The principal of and interest on bonds issued in accordance with this subtitle are exempt from State and local taxes.</text> </section> <section article="glg" article_name="Local Government" number="19-508" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <level label="a"> <text>A county fiscal officer who has custody of a sinking fund established by the county to pay the principal of or the interest on bonds issued in accordance with this subtitle may invest the sinking fund only as provided in § 19–102 of this title.</text> </level> <level label="b"> <text>A county fiscal officer who has custody of bond proceeds may invest the proceeds as provided in §§ 17–101 and 17–102 of this article.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-509" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <level label="a"> <text>Except as provided in subsection (b) of this section, each bond issued in accordance with this subtitle is a pledge of the full faith and credit of the county to the prompt payment, from the revenues described in the public local law authorizing the bond, of the principal of and interest on the bond when due.</text> </level> <level label="b"> <text>A revenue bond issued in accordance with this subtitle is not a debt of the county to which its faith and credit or taxing power is pledged.</text> </level> <level label="c"> <level label="1"> <text>If at the time bonds are issued there is no statutory limit on the power of the county to impose property taxes, the pledge under subsection (a) of this section is a covenant by the county to impose ad valorem taxes:</text> <level label="i"> <text>on all real and tangible personal property in the county that is subject to assessment for unlimited county taxation; and</text> </level> <level label="ii"> <text>at a rate and in an amount sufficient to pay the principal of and the interest on the bonds in each year in which any of the bonds are outstanding.</text> </level> </level> <level label="2"> <text>If at the time bonds are issued there is a statutory limit on the power of the county to impose property taxes, the pledge under subsection (a) of this section is a covenant by the county to impose the ad valorem taxes described in paragraph (1) of this subsection within the limits imposed by law.</text> </level> </level> <level label="d"> <text>A statute that establishes a maximum limit on the rate at which a county may impose property taxes, or that removes an existing limit, enacted after bonds are issued by the county does not affect the covenants of the county under subsection (c) of this section with respect to bonds outstanding on the effective date of the statute.</text> </level> <level label="e"> <level label="1"> <text>A county may not issue a bond under this subtitle if, by its issuance, a statutory maximum limit imposed by statute on the power of the county to incur debt will be exceeded.</text> </level> <level label="2"> <text>A statutory maximum limit imposed after a bond is issued does not affect the county’s obligation on the bond.</text> </level> <level label="3"> <text>The obligation of a county on an outstanding bond is not affected by the issuance of a bond in accordance with an increase in the statutory maximum limit on the power of the county to incur debt, or the removal of an existing maximum limit, enacted after the outstanding bond is issued.</text> </level> </level> <level label="f"> <level label="1"> <text>In addition to the pledge of its full faith and credit and taxing power to pay the principal of and interest on bonds, a county may secure the payment by the pledge of any other revenues, including:</text> <level label="i"> <text>payments to the county from the State or federal government; and</text> </level> <level label="ii"> <text>special benefit assessments, taxes, fees, or service charges.</text> </level> </level> <level label="2"> <text>To the extent that the additional revenues are sufficient in any year to pay the principal of and interest on the bonds to which they are pledged, the county is not obligated in that year to impose property taxes also pledged to pay the bonds.</text> </level> <level label="3"> <text>If the additional revenues are sufficient in any year to pay the principal of and interest on the bonds to which they are pledged, the failure of the county to impose property taxes pledged to pay the bonds in that year is not a breach of any payment of the principal of and interest on the bonds.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-510" title_number="19" title_name="Public Debt" subtitle_number="5" subtitle_name="Creation of Public Debt -- Code Counties"> <text>This subtitle does not impair any term or condition of any bond, note, or other obligation of a county issued or authorized to be issued by the county before adoption of code home rule.</text> </section> <section article="glg" article_name="Local Government" number="19-601" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authorizing resolution” means an administrative resolution adopted by the legislative body of a county.</text> </level> <level label="c"> <text>“County” includes a combination of two or more counties that have entered into an agreement under this part.</text> </level> <level label="d"> <level label="1"> <text>“Note” means an evidence of indebtedness of a county issued under this part.</text> </level> <level label="2"> <text>“Note” includes:</text> <level label="i"> <text>a bond;</text> </level> <level label="ii"> <text>commercial paper;</text> </level> <level label="iii"> <text>a refunding bond;</text> </level> <level label="iv"> <text>a refunding note; and</text> </level> <level label="v"> <text>any other obligation.</text> </level> </level> </level> <level label="e"> <text>“State share”, with reference to a particular county on a particular date, means the aggregate amount of the anticipated State share of the costs of public school construction and capital improvements under § 5–303 of the Education Article that:</text> <level label="1"> <text>has been approved by the Board of Public Works; and</text> </level> <level label="2"> <text>has not been advanced to the county.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-602" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <level label="a"> <level label="1"> <text>A county may borrow money and incur indebtedness through the issuance and sale of notes in anticipation of the receipt of any of the county’s State share.</text> </level> <level label="2"> <text>The amount borrowed may not exceed at any one time the county’s State share.</text> </level> <level label="3"> <text>In calculating the maximum principal amount of notes that may be outstanding, the State share may not be reduced with respect to any outstanding notes except on receipt by the county of money advanced by the State with respect to the State share and payment of notes with the money.</text> </level> </level> <level label="b"> <text>A county may enter into an agreement with one or more counties to provide for the issuance and sale of consolidated notes in anticipation of the receipt of any of the aggregate State shares of the participating counties.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-603" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <text>A county may expend the net proceeds of the sale of an issue of notes only to:</text> <level label="1"> <text>pay the costs of public school construction or capital improvements approved at any time by the Board of Public Works in anticipation of State money for any of the construction or improvements; or</text> </level> <level label="2"> <text>refund one or more issues of notes.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-604" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <level label="a"> <text>The principal of the notes may be paid from:</text> <level label="1"> <text>the proceeds of any of the State share for a county;</text> </level> <level label="2"> <text>any other revenues that are pledged to the payment of the notes in the authorizing resolution; or</text> </level> <level label="3"> <text>money made available to the county to finance the public school construction and capital improvements from:</text> <level label="i"> <text>the State or unit of the State;</text> </level> <level label="ii"> <text>the federal government or a unit of the federal government; or</text> </level> <level label="iii"> <text>any other source.</text> </level> </level> </level> <level label="b"> <text>The interest on the notes may be paid from:</text> <level label="1"> <text>any revenues, other than the proceeds of the State share for a county, that are pledged to the payment of the notes in the authorizing resolution; or</text> </level> <level label="2"> <text>money made available to the county to finance public school construction and capital improvements from:</text> <level label="i"> <text>the State or a unit of the State, except for the State share allocated under this part for public school construction and capital improvements;</text> </level> <level label="ii"> <text>the federal government or a unit of the federal government; or</text> </level> <level label="iii"> <text>any other source.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A county may pledge its full faith and credit and taxing power to the payment of the principal of and interest on the notes in the authorizing resolution.</text> </level> <level label="2"> <text>A county that makes a pledge under paragraph (1) of this subsection shall, in each fiscal year that any of the notes are outstanding, impose ad valorem taxes on all assessable property in the county at a rate and amount sufficient to pay the principal of and interest on the notes maturing in that fiscal year.</text> </level> <level label="3"> <text>If the proceeds from the taxes imposed in any fiscal year prove inadequate for the payment, the county shall impose additional taxes in the succeeding fiscal year to make up the deficiency.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-605" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <level label="a"> <text>The notes shall be authorized by a resolution.</text> </level> <level label="b"> <text>The authorizing resolution shall:</text> <level label="1"> <text>cite the authority to issue the notes and the amount authorized; and</text> </level> <level label="2"> <text>specify:</text> <level label="i"> <text>the maturity;</text> </level> <level label="ii"> <text>the interest rate or manner of determining the rate, which may include a variable rate;</text> </level> <level label="iii"> <level label="1"> <text>the price at which the notes will be sold, which may be at, above, or below the face value of the notes; or</text> </level> <level label="2"> <text>the manner of determining the price at which the notes will be sold;</text> </level> </level> <level label="iv"> <text>the manner of the sale of the notes, which may be by private negotiation by the county with a prospective purchaser, if determined by the county to be in the county’s best interest;</text> </level> <level label="v"> <text>the terms or conditions, if any, under which notes may or shall be redeemed prior to their stated maturity; and</text> </level> <level label="vi"> <text>other terms on the notes.</text> </level> </level> </level> <level label="c"> <text>The authorizing resolution may provide for:</text> <level label="1"> <text>the issuance of the notes in series, as money is required; and</text> </level> <level label="2"> <text>the renewal of the notes at maturity, with or without resale.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-606" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <level label="a"> <text>If the authorizing resolution provides, notes may be secured by:</text> <level label="1"> <text>a trust indenture with a corporate trustee, which may be any trust company or bank having the powers of a trust company in or outside the State; and</text> </level> <level label="2"> <text>a letter of credit, line of credit, or other credit or liquidity instrument from or with a bank or other lending institution.</text> </level> </level> <level label="b"> <text>A security provided by an authorizing resolution under this section may be secured by the same security given to holders of the notes for the performance by a county of the county’s monetary obligations under the notes.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-607" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <text>A note is not subject to §§ 19–205 and 19–206 of this title.</text> </section> <section article="glg" article_name="Local Government" number="19-608" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <text>A note is a valid and binding obligation of the issuing county in accordance with the terms of the note even if an official whose signature appears on the note:</text> <level label="1"> <text>ceases to be an official before the delivery of the note; or</text> </level> <level label="2"> <text>becomes an official after the date of issue of the note.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-609" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <text>The notes, the transfer of the notes, the interest payable on the notes, and any income derived from the notes, including profit realized in the sale or exchange of the notes, are exempt from State and local taxes.</text> </section> <section article="glg" article_name="Local Government" number="19-610" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <level label="a"> <text>The authorizing resolution, and notes and agreements authorized under the authorizing resolution, are not subject to:</text> <level label="1"> <text>procedures required for legislative acts; or</text> </level> <level label="2"> <text>referendum.</text> </level> </level> <level label="b"> <text>The authorizing resolution may include covenants regarding the payment of principal of and interest on the notes, notwithstanding any:</text> <level label="1"> <text>limitation in the county charter;</text> </level> <level label="2"> <text>other public general law; or</text> </level> <level label="3"> <text>public local law.</text> </level> </level> <level label="c"> <level label="1"> <text>A county may adopt an authorizing resolution without complying with any procedures in:</text> <level label="i"> <text>the county charter;</text> </level> <level label="ii"> <text>any public general law; or</text> </level> <level label="iii"> <text>a public local law.</text> </level> </level> <level label="2"> <text>Public school construction and capital improvements financed by a county under this part are not a capital project of a county for purposes of any constitutional, charter, statutory, or other limitation.</text> </level> </level> <level label="d"> <text>Any notes or agreements issued or entered into under this part may not be subject to or included in any constitutional, charter, statutory, or other limitation for the issuance of indebtedness by a county.</text> </level> <level label="e"> <text>The provisions of this part are self–executing.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-611" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, an agreement entered under § 19–602(b) of this subtitle may include the provisions that the counties adopt in the authorizing resolution.</text> </level> <level label="2"> <text>An agreement may not expire before the redemption or maturity of the notes issued under the agreement.</text> </level> </level> <level label="b"> <text>By agreement, two or more counties may establish a trust or similar arrangement authorized to sell notes on the same terms and in the same manner as counties may sell notes under this part and loan the proceeds of the notes to the counties.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-612" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <text>The authority to borrow money and issue notes granted to counties by this part is:</text> <level label="1"> <text>supplemental to any other power granted to a county by any other law; and</text> </level> <level label="2"> <text>not in derogation of any other existing power of a county to borrow money.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-615" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <text>“New school capacity construction bonds” means 10–year bonds issued under this part.</text> </section> <section article="glg" article_name="Local Government" number="19-616" title_number="19" title_name="Public Debt" subtitle_number="6" subtitle_name="Creation of Public Debt -- Public Schools"> <level label="a"> <level label="1"> <text>The County Commissioners of Charles County may issue new school capacity construction bonds at any time on the full faith and credit of the county to fund the costs incurred to construct new capacity for public elementary, middle, and high school facilities in the county, including:</text> <level label="i"> <text>costs for land acquisition, architectural and engineering design, infrastructure, new classrooms, equipment, interest on bond principal, and bond issuance; and</text> </level> <level label="ii"> <text>an amount equal to the total square footage of new public elementary, middle, and high school facilities in the county multiplied by the State square foot construction allowance, less the State funding share.</text> </level> </level> <level label="2"> <text>The new school capacity construction bonds shall constitute securities:</text> <level label="i"> <text>in which all public officers, public bodies of the State and its political subdivisions, insurance companies, State banks and trust companies, national banking associations, savings banks, savings and loan associations, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest money, including capital in their control or belonging to them; and</text> </level> <level label="ii"> <text>which may be properly and legally deposited with and received by any State or county officer, State unit, or political subdivision of the State for any purpose for which the deposit of bonds or obligations of the State may be authorized by law.</text> </level> </level> </level> <level label="b"> <text>The County Commissioners of Charles County shall hold a public hearing and provide reasonable notice of the hearing before issuing new school capacity construction bonds.</text> </level> <level label="c"> <text>The issuance and sale of new school capacity construction bonds under this part is exempt from § 19–205 and § 19–206 of this title.</text> </level> <level label="d"> <text>The transfer of, interest on, and any income derived from new school capacity construction bonds are exempt from State and local taxes.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-701" title_number="19" title_name="Public Debt" subtitle_number="7" subtitle_name="Creation of Public Debt -- Public Libraries in Calvert County, Harford County, and St. Mary's County"> <text>This subtitle applies only to:</text> <level label="1"> <text>Calvert County;</text> </level> <level label="2"> <text>Harford County; and</text> </level> <level label="3"> <text>St. Mary’s County.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-702" title_number="19" title_name="Public Debt" subtitle_number="7" subtitle_name="Creation of Public Debt -- Public Libraries in Calvert County, Harford County, and St. Mary's County"> <level label="a"> <text>The governing body of a county may borrow money to pay any of the capital construction costs of public library buildings in the county.</text> </level> <level label="b"> <text>The County Commissioners of St. Mary’s County may borrow money to pay any of the costs of preservation for public libraries in the county.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-703" title_number="19" title_name="Public Debt" subtitle_number="7" subtitle_name="Creation of Public Debt -- Public Libraries in Calvert County, Harford County, and St. Mary's County"> <text>The governing body of a county may:</text> <level label="1"> <text>issue bonds, notes, or other evidence of indebtedness to repay money borrowed under this subtitle; and</text> </level> <level label="2"> <text>impose a tax to pay the principal of and interest on the evidences of indebtedness.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-801" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <text>In this subtitle, “program” means a residential mortgage program authorized under this subtitle.</text> </section> <section article="glg" article_name="Local Government" number="19-802" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <text>A transaction under this subtitle is not a capital project within the meaning of any statutory or charter provision. </text> </section> <section article="glg" article_name="Local Government" number="19-803" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <level label="a"> <text>The General Assembly finds that:</text> <level label="1"> <text>persons and families in many areas in Cecil County, including areas that contain presently stable neighborhoods and middle class residential housing, are unable to purchase, rehabilitate, and maintain decent, safe, and sanitary housing that provides an opportunity for home ownership either directly or through a condominium or cooperative form of ownership due to continuing increases in the cost of construction and rehabilitation, county taxes, heating and electricity expenses, maintenance and repair expenses, inflation, the cost of land, the cost of energy conservation measures, and the levels of borrowing costs;</text> </level> <level label="2"> <text>the inability of families to purchase and maintain housing in the county results in:</text> <level label="i"> <text>the decline of new housing;</text> </level> <level label="ii"> <text>the decay of existing housing and neighborhoods; and</text> </level> <level label="iii"> <text>increases in costs for welfare, police, and fire protection;</text> </level> </level> <level label="3"> <text>the decline in new housing construction, and the decay of existing housing, has produced a critical shortage of adequate housing in the county that harms the economy of the county and the well–being of county residents;</text> </level> <level label="4"> <text>without a program, private enterprise cannot construct or rehabilitate adequate housing for persons and families in the county;</text> </level> <level label="5"> <text>forcing families to live in substandard housing is undesirable because it tends to decrease the interest of families in their communities, the maintenance of their property, and the preservation of their neighborhoods;</text> </level> <level label="6"> <text>the county has a basic public interest in:</text> <level label="i"> <text>providing a supplemental source of single–family residential mortgage funds at a cost lower to the borrower than prevailing rates for residential mortgages; and</text> </level> <level label="ii"> <text>stimulating a steady flow of money for residential housing to help in maintaining a well–balanced society, existing housing, a sound tax base, and established neighborhoods;</text> </level> </level> <level label="7"> <text>unless new facilities are constructed and existing housing, where appropriate, is rehabilitated, a large number of county residents have been and will be subject to hardship in finding decent, safe, and sanitary housing;</text> </level> <level label="8"> <text>unless the supply of housing and the ability of persons and families to obtain mortgage financing is increased significantly and expeditiously, many county residents may be compelled to live in unsanitary, overcrowded, or unsafe conditions to the detriment of the health and welfare of the residents and of their community;</text> </level> <level label="9"> <text>increasing the housing supply of the county and the ability of persons and families to obtain mortgage financing will:</text> <level label="i"> <text>aid the clearance, replanning, development, and redevelopment of blighted areas;</text> </level> <level label="ii"> <text>alleviate the critical shortage of adequate housing; and</text> </level> <level label="iii"> <text>greatly enhance the ability of the county to preserve and utilize existing housing and neighborhoods;</text> </level> </level> <level label="10"> <text>a major cause of the housing crisis is the lack of affordable loans so that persons and families can own and maintain decent, safe, and sanitary housing;</text> </level> <level label="11"> <text>an additional major cause of the housing crisis is the lack of money available to finance housing by the private mortgage lending institutions of the State, frustrating the maintenance, sale, and purchase of existing housing in the county;</text> </level> <level label="12"> <text>the powers authorized under this subtitle and the expenditure of public money necessary and appropriate to carry out a program are a valid public purpose; and</text> </level> <level label="13"> <text>the enactment of this subtitle is in the public interest.</text> </level> </level> <level label="b"> <text>The legislative purpose of this subtitle is to expand money available at borrowing costs that are lower than prevailing costs for residential mortgages for persons and families to alleviate the shortage of adequate housing in Cecil County and to preserve existing housing and neighborhoods.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-804" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <level label="a"> <text>By ordinance or resolution, the governing body of Cecil County shall specify:</text> <level label="1"> <text>the program;</text> </level> <level label="2"> <text>the amount of bonds to be issued under the program;</text> </level> <level label="3"> <text>the interest rate of the bonds, or the manner of determining the rate; and</text> </level> <level label="4"> <text>other provisions not inconsistent with this subtitle to effect the financing of the mortgage loans.</text> </level> </level> <level label="b"> <text>In the ordinance or resolution adopted under this subtitle, the governing body of Cecil County shall make findings regarding:</text> <level label="1"> <text>the need for the financing authorized under this subtitle;</text> </level> <level label="2"> <text>the types of housing available and needed in the county; and</text> </level> <level label="3"> <text>other factors that the governing body finds appropriate to establish a program.</text> </level> </level> <level label="c"> <text>An ordinance or resolution adopted under this subtitle is not subject to:</text> <level label="1"> <text>referendum; or</text> </level> <level label="2"> <text>other procedures that do not apply to all ordinances or resolutions enacted by Cecil County.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-805" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <level label="a"> <level label="1"> <text>Notwithstanding any other law, Cecil County may issue revenue bonds, notes, or other evidence of indebtedness to accomplish the purposes of this subtitle.</text> </level> <level label="2"> <text>The county may use money borrowed under this subtitle to make funds available, directly or through mortgage lending institutions, for residential mortgage loans by:</text> <level label="i"> <text>forward commitment mortgage purchases;</text> </level> <level label="ii"> <text>existing mortgage purchases;</text> </level> <level label="iii"> <text>loans to lenders;</text> </level> <level label="iv"> <text>a revolving mortgage fund; or</text> </level> <level label="v"> <text>any other manner the county considers appropriate.</text> </level> </level> <level label="3"> <level label="i"> <text>The county may issue new bonds to provide funds for the payment of any outstanding bonds in accordance with this subtitle and § 19–207 of this title.</text> </level> <level label="ii"> <text>The new bonds shall be secured to the same extent and have the same source of payment as the refunded bonds.</text> </level> </level> </level> <level label="b"> <text>The amount borrowed under this subtitle may not exceed $35,000,000 in the total aggregate amount.</text> </level> <level label="c"> <text>Cecil County may collect participation charges to cover loan processing, loan administration, mortgage insurance, and other costs and expenses of a program from a borrower participating in the program.</text> </level> <level label="d"> <text>A program may provide for:</text> <level label="1"> <text>loan agreements;</text> </level> <level label="2"> <text>security agreements;</text> </level> <level label="3"> <text>loan servicing agreements;</text> </level> <level label="4"> <text>forms of mortgages, notes, and deeds of trust; and</text> </level> <level label="5"> <text>other appropriate securities, documents, agreements, and provisions.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-806" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <level label="a"> <level label="1"> <text>A program shall require a down payment of at least 10% of the purchase price of the dwelling.</text> </level> <level label="2"> <level label="i"> <text>The down payment may be in the form of cash or real property owned by a mortgagor on which a dwelling has been constructed.</text> </level> <level label="ii"> <text>If the down payment is in the form of real property, the property shall be valued at the lesser of its purchase price or appraised value.</text> </level> </level> </level> <level label="b"> <text>An individual mortgage loan authorized under a program may not exceed $90,000.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-807" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <level label="a"> <level label="1"> <text>A bond issued under this subtitle:</text> <level label="i"> <text>shall be negotiable;</text> </level> <level label="ii"> <text>may be issued in coupon form or registrable as to principal or as to both principal and interest;</text> </level> <level label="iii"> <text>may be issued to bear interest, payable annually, semiannually, or otherwise; and</text> </level> <level label="iv"> <text>may be executed, issued, or delivered at any time.</text> </level> </level> <level label="2"> <level label="i"> <text>A bond issued under this subtitle shall be signed by the president of the governing body of Cecil County.</text> </level> <level label="ii"> <text>The seal of the county shall be affixed to the bond and attested to by the clerk or the officer performing the functions of the clerk.</text> </level> <level label="iii"> <text>An officer’s signature or countersignature on a bond or coupon remains valid even if the officer ceases to be an officer before the delivery of the bond.</text> </level> </level> <level label="3"> <level label="i"> <text>The county may not issue a bond under this subtitle that matures later than 40 years from the date of issue.</text> </level> <level label="ii"> <text>The county shall pay for a mature bond at the place that the county determines.</text> </level> </level> </level> <level label="b"> <text>Bonds issued under this subtitle may be secured by a pledge of mortgages or notes secured by deeds of trust on any type of interest in real or other property, including:</text> <level label="1"> <text>real property or other interests held by stock cooperatives and condominiums and their unit owners;</text> </level> <level label="2"> <text>servicing agreements;</text> </level> <level label="3"> <text>condemnation proceeds;</text> </level> <level label="4"> <text>proceeds of private mortgage insurance or casualty and special hazard insurance; or</text> </level> <level label="5"> <text>any other security that Cecil County determines is appropriate.</text> </level> </level> <level label="c"> <text>Bonds issued under this subtitle may provide that the bonds may be redeemed, at the option of Cecil County, before maturity, at the price and under the terms and conditions that the county sets before the bonds are issued.</text> </level> <level label="d"> <text>Money received from bonds issued under this subtitle may be used only to:</text> <level label="1"> <text>make residential mortgage loans in Cecil County, either directly or through mortgage lending institutions;</text> </level> <level label="2"> <text>establish reserve funds;</text> </level> <level label="3"> <text>pay necessary financing expenses; or</text> </level> <level label="4"> <text>advance the payment of interest on the bonds during the 3 years after the date of the bonds.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-808" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <level label="a"> <text>Cecil County shall sell bonds authorized under this subtitle at public or private sale and on the terms that the county considers best.</text> </level> <level label="b"> <text>Bonds issued under this subtitle are exempt from §§ 19–205 and 19–206 of this title.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-809" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <level label="a"> <text>A bond issued under this subtitle and the interest on the bond are limited obligations of Cecil County.</text> </level> <level label="b"> <text>Cecil County may pay the principal of and interest on a bond issued under this subtitle only from:</text> <level label="1"> <text>revenues derived from interest, mortgage insurance proceeds, casualty or special hazard insurance proceeds, other insurance proceeds, or condemnation proceeds; or</text> </level> <level label="2"> <text>other revenues derived from or related to loans made under a program.</text> </level> </level> <level label="c"> <text>Bonds and interest coupons issued under this subtitle:</text> <level label="1"> <text>are not debts or charges against the general credit or taxing powers of Cecil County within the meaning of any constitutional or county code provision or statutory limitation; and</text> </level> <level label="2"> <text>do not give rise to any pecuniary liability of the county.</text> </level> </level> <level label="d"> <text>On the advice of counsel, Cecil County may state on the face of a bond that the bond:</text> <level label="1"> <text>is issued under this subtitle; and</text> </level> <level label="2"> <text>is not an indebtedness to which the faith and credit of the county is pledged.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-810" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <text>A finding made by Cecil County regarding a program or the qualification of a person or family to participate in a program is conclusive in a proceeding involving the validity or enforceability of a bond, or security for a bond, issued under this subtitle.</text> </section> <section article="glg" article_name="Local Government" number="19-811" title_number="19" title_name="Public Debt" subtitle_number="8" subtitle_name="Creation of Public Debt -- Financing Residential Mortgages in Cecil County"> <text>The principal amount of the bonds issued under this subtitle, the transfer of the bonds, the interest payable on the bonds, and any income derived from the bonds, including profit realized in the sale or exchange of the bonds, are exempt from State and local taxes. </text> </section> <section article="glg" article_name="Local Government" number="19-901" title_number="19" title_name="Public Debt" subtitle_number="9" subtitle_name="Pension Liability Funding Bonds"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Bond” means an obligation for the payment of money, by whatever name known or source of funds secured, issued by a governmental entity under general or special statutory authority.</text> </level> <level label="2"> <text>“Bond” includes:</text> <level label="i"> <text>a bond;</text> </level> <level label="ii"> <text>a certificate of indebtedness;</text> </level> <level label="iii"> <text>an interim certificate; and</text> </level> <level label="iv"> <text>a note.</text> </level> </level> </level> <level label="c"> <text>“Pension liability funding bond” means a bond authorized to be issued under this subtitle.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-902" title_number="19" title_name="Public Debt" subtitle_number="9" subtitle_name="Pension Liability Funding Bonds"> <level label="a"> <text>This subtitle applies only to:</text> <level label="1"> <text>charter counties;</text> </level> <level label="2"> <text>code counties; and</text> </level> <level label="3"> <text>municipalities.</text> </level> </level> <level label="b"> <text>This subtitle applies only to a pension or retirement plan or system:</text> <level label="1"> <text>that is closed to new membership; and</text> </level> <level label="2"> <text>under which a county or municipality is directly or indirectly obligated to pay or cause to be paid retirement, disability, death, or other benefits.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-903" title_number="19" title_name="Public Debt" subtitle_number="9" subtitle_name="Pension Liability Funding Bonds"> <text>The General Assembly finds that it is in the best interests of the charter counties, code counties, and municipalities and the residents of the State to authorize each charter county, code county, or municipality to issue bonds in order to fund any unfunded liability of the county or municipality with respect to any pension or retirement plan or system to:</text> <level label="1"> <text>use favorable market conditions that may exist to reduce the cost of the pension or retirement plan or system to the county or municipality; or</text> </level> <level label="2"> <text>otherwise structure and provide for pension plan liability funding in a manner consistent with the financial plans of the county or municipality.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-904" title_number="19" title_name="Public Debt" subtitle_number="9" subtitle_name="Pension Liability Funding Bonds"> <level label="a"> <text>A county or municipality that is authorized under law to borrow money and issue bonds may issue pension liability funding bonds to fund any unfunded present or contingent liability of any kind under a pension or retirement plan or system.</text> </level> <level label="b"> <text>Pension liability funding bonds may be issued for the public purposes of:</text> <level label="1"> <text>realizing savings with respect to the aggregate cost of the pension or retirement plan or system being funded, on either a direct comparison or present value basis; or</text> </level> <level label="2"> <text>structuring or restructuring pension or retirement plan or system costs in a manner that:</text> <level label="i"> <text>in the aggregate effects a reduction in the total cost of the pension or retirement plan or system as provided in item (1) of this subsection; or</text> </level> <level label="ii"> <text>is determined by the county or municipality:</text> <level label="1"> <text>to be in the best interests of the county or municipality;</text> </level> <level label="2"> <text>to be consistent with the county’s or municipality’s long–term financial plan; and</text> </level> <level label="3"> <text>to realize a financial objective of the county or municipality, including:</text> </level> <level label="A"> <text>improving the relationship of pension or retirement plan or system costs to a source of payment such as taxes, assessments, or other charges; or</text> </level> <level label="B"> <text>improving the benefits payable under the pension or retirement plan or system.</text> </level> </level> </level> </level> <level label="c"> <text>The authority to issue pension liability funding bonds under this subtitle is supplemental to any authority to borrow money or issue bonds granted to a county or municipality under any other law.</text> </level> <level label="d"> <text>Except as otherwise provided in this subtitle, pension liability funding bonds are subject to any requirement that applies to the issuance of the county’s or municipality’s bonds that have the same source of payment as the pension liability funding bonds regarding:</text> <level label="1"> <text>the terms, conditions, and covenants of the bonds;</text> </level> <level label="2"> <text>the taxes or other sources of money for payment of the bonds; and</text> </level> <level label="3"> <text>the procedures for issuance of the bonds.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-905" title_number="19" title_name="Public Debt" subtitle_number="9" subtitle_name="Pension Liability Funding Bonds"> <level label="a"> <text>Notwithstanding any State or local law to the contrary, a county or municipality may:</text> <level label="1"> <text>issue pension liability funding bonds:</text> <level label="i"> <text>without regard to:</text> <level label="1"> <text>any provision of the county’s or municipality’s charter or any other law that:</text> </level> <level label="A"> <text>requires a public referendum before the issuance of public debt by the county or municipality; or</text> </level> <level label="B"> <text>requires that debt be issued only to finance certain projects such as capital projects defined in a charter; or</text> </level> <level label="2"> <text>any other provision that is inconsistent with this subtitle;</text> </level> </level> <level label="ii"> <text>in one or more series, each series being in the principal amount that the county or municipality determines to be required to achieve the purpose for the issuance of the pension liability funding bonds; and</text> </level> <level label="iii"> <text>as serial bonds or as term bonds with provisions for mandatory sinking fund or other annual principal redemption;</text> </level> </level> <level label="2"> <text>sell pension liability funding bonds on a negotiated basis without solicitation of bids at a price at, above, or below par;</text> </level> <level label="3"> <text>provide for pension liability funding bonds to bear interest at fixed rates determined by the county or municipality or at floating or variable rates established by a method of determination approved by the county or municipality; and</text> </level> <level label="4"> <text>provide for the principal and interest installments on pension liability funding bonds to be unequal from year to year and to be consistent with the general financial plan of the county or municipality.</text> </level> </level> <level label="b"> <text>A county or municipality may not issue pension liability funding bonds that mature later than 30 years from the date of issue.</text> </level> <level label="c"> <text>The first principal installment payment or mandatory redemption of any pension liability funding bonds may not be later than 3 years from the date of issue.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-906" title_number="19" title_name="Public Debt" subtitle_number="9" subtitle_name="Pension Liability Funding Bonds"> <level label="a"> <text>The proceeds of pension liability funding bonds may be deposited, in amounts determined by the county or municipality, in trust with a trust company or other banking institution as trustee, in a trust fund established in the name of the county or municipality.</text> </level> <level label="b"> <text>Money in the trust fund may be invested and reinvested in any taxable or tax–exempt securities, obligations, or other investments and at any yields that are determined by the county or municipality to be consistent with the purposes for which the pension liability funding bonds were issued and with the financial plan of the county or municipality.</text> </level> <level label="c"> <text>The interest, income, and profits earned or realized on any investment may be:</text> <level label="1"> <text>applied to the payment of a portion of the benefits under the pension or retirement plan or system to be funded;</text> </level> <level label="2"> <text>applied to the payment of the pension liability funding bonds; or</text> </level> <level label="3"> <text>otherwise applied in any lawful manner.</text> </level> </level> <level label="d"> <text>Money in the trust fund shall be available to pay:</text> <level label="1"> <text>the benefits under the pension or retirement plan or system being funded;</text> </level> <level label="2"> <text>the pension liability funding bonds; and</text> </level> <level label="3"> <text>any other related costs, as the county or municipality requires.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-907" title_number="19" title_name="Public Debt" subtitle_number="9" subtitle_name="Pension Liability Funding Bonds"> <text>In any proceeding involving the validity or enforceability of pension liability funding bonds or any security for the bonds, a finding by the legislative or other governing body of the county or municipality as to the public purpose of any actions taken under this subtitle or as to other matters relating to the issuance of the bonds is conclusive.</text> </section> <section article="glg" article_name="Local Government" number="19-908" title_number="19" title_name="Public Debt" subtitle_number="9" subtitle_name="Pension Liability Funding Bonds"> <level label="a"> <text>Pension liability funding bonds, the transfer of the bonds, the interest payable on the bonds, and any income derived from the bonds, including any profit realized in the sale and exchange of the bonds, are exempt from State and local taxes.</text> </level> <level label="b"> <text>This subtitle does not prevent a county or municipality from authorizing the issuance and sale of pension liability funding bonds, the interest on which is not excludable from gross income for federal income tax purposes.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-1001" title_number="19" title_name="Public Debt" subtitle_number="10" subtitle_name="Public Debt -- Grants and Loans for Septic Upgrades"> <text>A county may borrow money and incur indebtedness through the issuance and sale of notes in anticipation of the receipt of the county’s allocation of funds from the separate account of the Bay Restoration Fund established under § 9–1605.2(h) of the Environment Article.</text> </section> <section article="glg" article_name="Local Government" number="19-1002" title_number="19" title_name="Public Debt" subtitle_number="10" subtitle_name="Public Debt -- Grants and Loans for Septic Upgrades"> <text>A county may expend the net proceeds of the sale of an issue of notes only to:</text> <level label="1"> <text>make grants and loans in accordance with § 9–1605.2(h)(2)(i) of the Environment Article;</text> </level> <level label="2"> <text>make grants and loans to cover engineering costs and non–best–available–technology components, including drainfields, needed for the repair of existing on–site sewage disposal systems or the installation of new on–site sewage disposal systems that use the best available technology for nitrogen removal; or</text> </level> <level label="3"> <text>refund one or more issues of notes.</text> </level> </section> <section article="glg" article_name="Local Government" number="19-1003" title_number="19" title_name="Public Debt" subtitle_number="10" subtitle_name="Public Debt -- Grants and Loans for Septic Upgrades"> <level label="a"> <text>The principal of the notes may be paid from:</text> <level label="1"> <text>the county’s allocation of funds from the special account of the Bay Restoration Fund established under § 9–1605.2(h) of the Environment Article; and</text> </level> <level label="2"> <text>any other revenues that are pledged to the payment of the notes in the authorizing resolution.</text> </level> </level> <level label="b"> <text>The interest on the notes may be paid from:</text> <level label="1"> <text>any revenues, other than the county’s allocation of funds from the special account of the Bay Restoration Fund, that are pledged to the payment of the notes in the authorizing resolution; or</text> </level> <level label="2"> <text>money made available to the county to finance upgrades to on–site sewage disposal systems from:</text> <level label="i"> <text>the State or a unit of the State, except for the funds from the special account of the Bay Restoration Fund allocated under this subtitle for grants and loans;</text> </level> <level label="ii"> <text>the federal government or a unit of the federal government; or</text> </level> <level label="iii"> <text>any other source.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A county may pledge its full faith and credit and taxing power to the payment of the principal of and interest on the notes in the authorizing resolution.</text> </level> <level label="2"> <text>A county that makes a pledge under paragraph (1) of this subsection shall, in each fiscal year that any of the notes are outstanding, impose ad valorem taxes on all assessable property in the county at a rate and amount sufficient to pay the principal of and interest on the notes maturing in that fiscal year.</text> </level> <level label="3"> <text>If the proceeds from the taxes imposed in any fiscal year prove inadequate for the payment, the county shall impose additional taxes in the succeeding fiscal year to make up the deficiency.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="19-1004" title_number="19" title_name="Public Debt" subtitle_number="10" subtitle_name="Public Debt -- Grants and Loans for Septic Upgrades"> <text>The authority to borrow money and issue notes granted to a county under this subtitle is:</text> <level label="1"> <text>supplemental to any other power granted to a county by any other law; and</text> </level> <level label="2"> <text>not in derogation of any other existing power of a county to borrow money.</text> </level> </section>