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. If a conflict exists between this subtitle and the charter of a municipality, the charter controls. 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.

A municipality may: borrow money for any public purpose; and issue and sell general obligation bonds to evidence the borrowing. 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. Unless the charter of the municipality provides otherwise, in anticipation of the receipt of current taxes, a municipality may: borrow money for any public purpose; and issue and sell tax anticipation notes to evidence the borrowing. The municipality shall pay the principal of and interest on tax anticipation notes when current taxes are received. Tax anticipation notes: shall be issued in accordance with § 19–303 of this subtitle; but may be sold by private negotiations.

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. A resolution or an ordinance authorizing municipal bonds shall contain: a statement of the public purpose for which the bond proceeds are to be spent; the form of the bonds, including: the place at which the bonds will be payable; the time at which the bonds will be payable; the interest rate on the bonds or a space to insert the interest rate when determined; the title of each official whose signature must be affixed to or imprinted on the bonds; the authority for issuance of the bonds; and the revenues from which the principal of and interest on the bonds will be payable; specific provision for the appropriation and disposal of the bond proceeds; specific provision for the payment of the principal of and interest on the bonds, including the source of payment; and the form of the notice soliciting bids for the purchase of the bonds, including: the date, place, and time for receiving and opening bids; a brief description of the purpose for which the bonds will be issued; a brief description of the denominations, maturities, terms, and conditions of the bonds; a statement of the interest rate of the bonds or the manner of determining the rate; a precise statement of the manner in which the best offer for the bonds will be determined; and a reference to the resolution or ordinance authorizing the bonds. 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. 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: the principal of and interest on the bonds shall be payable at one or more banks or trust companies in or outside the State; 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; 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: the bonds contain a statement of the redemption provisions; and the enabling resolution or ordinance provides for published notice before a redemption; 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 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: ceases to be an official before the delivery of the bond; or becomes an official after the date of issue of the bond. 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. The notice soliciting bids for the purchase of the bonds may: require prospective purchasers to submit bids on specified forms; require prospective purchasers to accompany their bids with good faith deposits in specified amounts; provide for approval of the legality of the bonds; and contain a financial statement of the municipality. 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. 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.

A municipality may not issue bonds that mature later than 40 years after the date of issue. A municipality may not issue tax anticipation notes that mature later than 18 months after the date of issue. A municipality may issue bonds and tax anticipation notes only for cash. A municipality may not sell bonds or tax anticipation notes at less than par value. 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. 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. A municipality may not sell bonds unless the municipality: solicits competitive bids at a public sale; and publishes notice of the bond sale: in the form required by the resolution or ordinance; in a newspaper of general circulation in the municipality and any other publication that is specified in the resolution or ordinance; and two times over a period of at least 10 days before the date specified for the bond sale.

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.

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.

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. 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.

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. 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. 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: on all real and tangible personal property in the municipality that is subject to assessment for unlimited municipal taxation; and 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. 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. 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. 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. A maximum limit imposed after a bond is issued does not affect the municipality’s obligation on the bond. 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. 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: payments to the municipality from the State or federal government; and special benefit assessments, taxes, fees, or service charges. 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. 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.

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.