In this subtitle, “public local law” has the meaning stated in Article XI–F, § 1 of the Maryland Constitution.

This subtitle applies only to code counties.

A county may: borrow money for any public purpose; and issue and sell general obligation bonds to evidence the borrowing. 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. Notwithstanding any other provision of this subtitle, a county may issue bonds: for sanitary facilities as provided in the Environment Article; and as authorized by local law in effect on the date the county adopts code home rule.

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. To issue bonds described in § 19–503(c) of this subtitle, a county: need not enact a public local law; and shall comply with the law authorizing issuance of the bonds. The public local law required under subsection (a) of this section shall contain: a statement of: the aggregate amount of bonds authorized by the public local law; the public purpose for which the bond proceeds are to be spent; and the revenues from which the principal of and interest on the bonds will be payable; and 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. A resolution adopted under subsection (c)(2) of this section shall contain: a statement of: the amount of bonds to be issued; and 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. 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. 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. The notice of sale also may: require prospective purchasers to submit bids on specified forms; provide for approval of the legality of the bonds; and contain a financial statement of the county. Any of the items under paragraph (2) of this subsection also may be separately set forth in a circular or official statement. 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: 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 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; 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: the bonds contain a statement of the redemption provisions; and the resolution 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 county 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. 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.

A county may not issue bonds that mature later than 40 years after the date of issue. A county may issue bonds only for cash. A county may not sell bonds at less than par value. 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. 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.

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.

The principal of and interest on bonds issued in accordance with this subtitle are exempt from State and local taxes.

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. 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.

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. 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. 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: on all real and tangible personal property in the county that is subject to assessment for unlimited county 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 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. 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. 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. A statutory maximum limit imposed after a bond is issued does not affect the county’s obligation on the bond. 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. 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: payments to the county 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 county 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 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.

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.