Title 19. Public Debt — Subtitle 1. General Provisions
Statutes in effect as of October 1, 2026.
Md. Code Ann., Local Gov't § 19-101 (2026)
Title 19. Public Debt
Subtitle 1. General Provisions
§ 19–101LinkCopy Citation
(a)
(1)
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.
(2)
A resolution under paragraph (1) of this subsection is not a legislative act.
(b)
(1)
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.
(2)
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:
(i)
the forms, dates, and denominations of the bonds;
(ii)
the principal maturities;
(iii)
the methods to be used in determining interest payable on the bonds; and
(iv)
any provisions for:
(1)
registration;
(2)
redemption before stated maturity; and
(3)
the use of facsimile signatures or seals.
(c)
(1)
Notice of the public sale of consolidated public improvement bonds:
(i)
shall be made at least once in a newspaper of general circulation in the county, Baltimore City, or the Washington Suburban Sanitary District; and
(ii)
also may be made in a newspaper which circulates primarily among bankers and investors.
(2)
At least one notice of public sale shall be made at least 10 days before the sale.
(d)
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.
(e)
The provisions of this section supersede any inconsistent provision of law.
Md. Code Ann., Local Gov't § 19-102 (2026)
Title 19. Public Debt
Subtitle 1. General Provisions
§ 19–102LinkCopy Citation
(a)
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.
(b)
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:
(1)
the bonds or other obligations for the retirement of which the sinking fund is or will be created;
(2)
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;
(3)
the bonds or other obligations of the United States;
(4)
United States Treasury Certificates; or
(5)
bonds of any public corporation or other body, guaranteed as to payment of principal and interest by the United States.
(c)
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.
(d)
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.
(e)
(1)
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.
(2)
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.
(3)
The security may consist of:
(i)
any of the classes of securities listed in subsection (b) of this section; or
(ii)
a surety bond of a corporate surety company qualified to do business in the State.
(4)
A deposit may not be made unless security is provided in accordance with this subsection.
Md. Code Ann., Local Gov't § 19-103 (2026)
Title 19. Public Debt
Subtitle 1. General Provisions
§ 19–103LinkCopy Citation
(a)
(1)
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.
(2)
Paragraph (1) of this subsection applies to all bonds issued by Anne Arundel County or Prince George’s County before June 30, 1981.
(b)
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:
(1)
create, pledged for payment of principal of and interest on debt:
(i)
a sinking fund;
(ii)
a debt service fund;
(iii)
a debt service reserve fund; or
(iv)
any other trust fund, including a fund held by a corporate trustee;
(2)
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:
(i)
make a payment when due; or
(ii)
cure the default; and
(3)
pledge any county revenue to pay principal of and interest on the debt.
(c)
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:
(1)
the county has pledged unlimited taxing powers to the bonds; and
(2)
the bonds are outstanding on the effective date of the charter provision.
Md. Code Ann., Local Gov't § 19-104 (2026)
Title 19. Public Debt
Subtitle 1. General Provisions
§ 19–104LinkCopy Citation
The County Commissioners of Calvert County:
(1)
may charge a fee for the issuance of tax–exempt private activity bonds; and
(2)
shall dedicate the proceeds of the fee to the Economic Development Loan Fund of the county.
Md. Code Ann., Local Gov't § 19-105 (2026)
Title 19. Public Debt
Subtitle 1. General Provisions
§ 19–105LinkCopy Citation
The governing body of Frederick County shall establish and maintain a bond rating enhancement reserve.
Md. Code Ann., Local Gov't § 19-106 (2026)
Title 19. Public Debt
Subtitle 1. General Provisions
§ 19–106LinkCopy Citation
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.