# Land Use (GLU) ## Title 18. Finances ### Subtitle 2. Debt and Securities #### Section 18-201 In this subtitle, "bond" means a bond, note, or other evidence of indebtedness issued under this title. #### Section 18-202 A requirement for signature under this subtitle may be satisfied by manual or facsimile signature. #### Section 18-203 (a) The Commission may issue and sell bonds in amounts necessary for the purposes under subsection (b) of this section and under regulations the Commission determines. (b) The Commission may issue the bonds to pay for the acquisition of property in the metropolitan district for the purposes of Sec. 17-101(b) of this article. (c) The Commission may issue the bonds periodically in one or more series. (d) (1) Subject to paragraph (2) of this subsection, the amount of bonds outstanding at any time may not exceed an amount that is redeemable within 30 years from the date of issue by the tax authorized and pledged to pay the bonds, to the extent that the tax is proposed to be imposed in Montgomery County or Prince George's County or both. (2) To determine the amount of bonds that may be outstanding under paragraph (1) of this subsection, the Commission may assume: (i) future imposition of the tax at the rate established by each county; (ii) 100% collection of the tax in each fiscal year; and (iii) the assessed value of property at the time the bonds are issued will remain constant. (e) The bonds shall: (1) be registered or coupon bonds in denominations determined by the Commission; (2) bear interest: (i) annually at a rate the Commission determines to be advantageous and otherwise in the public interest; and (ii) payable semiannually or at a time determined by the Commission; (3) mature within 50 years from the date of issue; and (4) be issued under the hand and seal of the Commission, by manual or facsimile signature. (f) Notwithstanding any other law, the Commission may sell the bonds by competitive or negotiated sale in a manner, for a price, and at rates the Commission determines to be in its best interests. (g) (1) In the issue of bonds, the Commission may provide for the redemption of some or all of the bonds before their stated maturity. (2) The redemption price of the bonds may be greater than the par value of the bonds. #### Section 18-204 (a) The bonds shall be issued on the full faith and credit of the Commission and the county guaranteeing the bonds. (b) (1) If the Commission decides to spend the proceeds of a bond issue throughout the metropolitan district, Montgomery County and Prince George's County shall guarantee the payment of principal of and interest on the bonds. (2) The following guarantee shall be stated on each bond: "The payment of interest when due and of the principal on maturity is guaranteed by Montgomery and Prince George's counties, Maryland.". (3) The county executives of Montgomery County and Prince George's County shall sign the endorsement by manual or facsimile signature on each bond. (4) If there is any liability under the guarantee, each county's liability shall be in the proportion the assessable basis for that part of the county in the metropolitan district bears to the assessable basis of the whole district. (c) (1) If the proceeds of a bond issue are to be expended only in or for the benefit of a portion of the metropolitan district that is in Montgomery County, Montgomery County shall guarantee the payment of principal of and interest on the bonds. (2) The following guaranty shall be stated on each bond: "The payment of interest when due and of the principal on maturity is guaranteed by Montgomery County, Maryland.". (3) The County Executive of Montgomery County shall sign the endorsement by manual or facsimile signature on each bond. (d) (1) If the proceeds of a bond issue are to be expended only in or for the benefit of a portion of the metropolitan district that is in Prince George's County, Prince George's County shall guarantee the payment of principal of and interest on the bonds. (2) The following guaranty shall be endorsed on each bond: "The payment of interest when due and of the principal on maturity is guaranteed by Prince George's County, Maryland.". (3) The County Executive of Prince George's County shall sign the endorsement by manual or facsimile signature on each bond. #### Section 18-205 (a) Subject to subsections (b) and (c) of this section, if the proceeds of a bond issue are to be expended throughout the metropolitan district, the proceeds shall be expended in the portion of each county in the metropolitan district in the proportion that the assessable base of that portion of either county bears to the assessable base of the entire metropolitan district. (b) The Commission may issue bonds to carry out the Commission's corporate purposes in the metropolitan district in either county. (c) (1) The proceeds of the sale of bonds to be expended in or for the benefit of the portion of the metropolitan district in Montgomery County shall be expended only on the recommendation of the commissioners from Montgomery County. (2) The proceeds of the sale of bonds to be expended in or for the benefit of the portion of the metropolitan district in Prince George's County shall be expended only on the recommendation of the commissioners from Prince George's County. #### Section 18-206 (a) (1) To accomplish the purposes under Sec. 18-203(b) of this subtitle, the Commission may issue bonds to finance the cost of revenue-producing facilities in Montgomery County or Prince George's County, including: (i) the cost of acquiring or constructing a facility; (ii) the cost of enlarging, improving, remodeling, or restoring an acquired facility; (iii) the cost of surveys, studies, drawings, and architectural and engineering plans and specifications; (iv) the cost of site assembly, including legal proceedings, title fees, and settlement charges; (v) the cost of issuance of bonds under this section, including advertising and printing charges and legal fees; (vi) the cost of interest on the bonds during construction of a facility and for 1 year after completion of the facility; and (vii) the cost to the Commission of performance of any of the functions under this paragraph by Commission staff. (2) The Commission may be reimbursed for performance of any of the functions under paragraph (1) of this subsection from the proceeds of the bonds issued to finance the facility with respect to which the services were performed. (3) The bonds are payable as to principal and interest solely from revenues of the Commission from fees, rates, rents, or other charges received by the Commission for: (i) the use of the facility; or (ii) the use of a facility that is not financed by the borrowing. (4) The Commission may secure any borrowing by a pledge of the revenues. (b) (1) The Commission may set and periodically amend fees, rates, rentals, or other charges for the use of the Commission's facilities in Montgomery County or Prince George's County: (i) to provide revenue to pay debt service: (1) on bonds issued under this section to finance the cost of a facility either separately or together with other revenue-producing facilities of the Commission in either county; or (2) on bonds issued to finance the cost of other revenue-producing facilities of the Commission in either county; and (ii) to pay the expenses of the Commission for the facility, including operating and maintenance expenses, unless the Commission authorizes the use of funds from another source for payment of other expenses. (2) To sell and secure the bonds of the Commission authorized under this section, the Commission may enter into agreements to set the fees, rates, rentals, or other charges and the collection and application of the fees, rates, rentals, or other charges. (c) (1) The Commission may determine the form, terms and conditions, issuance, and sale and delivery of an obligation issued under this section, including: (i) the interest rate or method of determining the interest rate of the obligation; (ii) the maturity date of the obligation and any provisions for redemption prior to maturity; (iii) the price at which the obligation is to be sold, which may be above or below par value; and (iv) the security for the obligation. (2) The Commission may sell the bonds by competitive or negotiated sale in a manner, for a price, and at rates the Commission determines to be in its best interests. (3) Notwithstanding any other law or any recitals in any instruments creating the obligation, the obligations are negotiable instruments. (4) The chair of the Commission shall execute the obligation on behalf of the Commission by manual or facsimile signature. (5) The secretary-treasurer of the Commission shall attest to the execution of the obligation by manual or facsimile signature. (6) The seal of the Commission shall be impressed or imprinted on the obligation. (7) An officer's signature or facsimile signature on an obligation remains valid even if the officer leaves office before the obligation is delivered. (d) (1) The Commission may enter into a trust agreement with, and designate as trustee under the trust agreement, a bank with trust powers, or a trust company, located in or outside the State to secure payment of the principal of and interest on an obligation issued under this section. (2) The trust agreement may provide for: (i) the deposit of the proceeds of the sale of the obligations secured by the trust agreement with the trustee; and (ii) the application of the proceeds to pay the cost of the facility financed by the obligations. (3) The Commission may enter into covenants and agreements in the trust agreement for: (i) the setting of fees, charges, and rentals for the use and enjoyment of the facility; (ii) the payment of gross or net revenues from the facility and other funds pledged under this section to the trustee; (iii) the application of the payments by the trustee to the payment of the principal of and interest on the obligations secured by the trust agreement; and (iv) the establishment and maintenance of reserves or a sinking fund. (4) The trust agreement may contain a pledge of and constitute a lien on: (i) the revenues and funds pledged by the Commission for the payment of obligations issued under this section; and (ii) the proceeds of sale of the obligations, the investment of the proceeds, and the income or gain resulting from the investment of the proceeds. (5) The trust agreement may create a security interest for the benefit of the holders of the obligations in the facility that is financed with the proceeds of the obligations, but not in any other facility the revenues from which are pledged by the Commission to the payment of debt service on the obligations. (6) The trust agreement may provide for the protection of the holders of the obligations if the Commission fails to perform any of the covenants under the agreement, including the right of the trustee to sell any of the facilities at public or private sale and the application of the proceeds of the sale to the payment of the obligations secured by the agreement. (e) (1) The Commission may apply general funds not otherwise committed to the payment of the principal of and interest on bonds issued under this section, either on maturity or redemption. (2) The Commission may retire an entire issue of the bonds issued under this subsection from the proceeds of general obligation refunding bonds issued under Sec. 18-207 of this subtitle. (3) The Commission may: (i) continue to charge for the use or enjoyment of a facility on the retirement of an issue of bonds from: (1) the revenues of the facility financed by the bonds; (2) other funds of the Commission; or (3) refunding as authorized under Sec. 18-207 of this subtitle; and (ii) apply the revenues from the charge to any other function, objective, or purpose of the Commission. (f) (1) The Commission may adopt rules and regulations for the use and enjoyment by the general public of a facility financed under this subsection. (2) The rules and regulations may not exclude a person that pays the required charge or fee for use and enjoyment of the facility because of creed, race, or gender of the person. (3) A lease of a facility by the Commission shall contain enforceable covenants by the lessee to comply with this section. #### Section 18-207 (a) If any bonds are issued under this title subject to redemption or repurchase, the Commission may: (1) redeem or repurchase the bonds at the stated redemption prices plus accrued interest; and (2) issue and sell refunding bonds as provided under this section to provide funds for the redemption or repurchase. (b) (1) The refunding bonds may be: (i) issued in amounts sufficient to accomplish the redemption or repurchase and in units corresponding to the bonds to be repurchased or refunded; or (ii) issued in an amount sufficient to provide for the refunding or repurchase of several issues of bonds. (2) Bonds initially issued on account of lands purchased in Montgomery County or Prince George's County may not be refunded or repurchased through the flotation of a single issue of refunding bonds. (c) (1) The refunding bonds may be identified as refunding bonds or designated in any other appropriate fashion. (2) The Commission may determine: (i) the terms and conditions of the bonds; and (ii) the manner, method, and place of sale of the bonds. (3) The maturity date of an issue of bonds may not exceed 60 years from the earliest of the respective dates of issue of the corresponding series of bonds or notes in substitution for which any issue of bonds is issued. (d) The Commission may: (1) sell the bonds, at not less than par value, by competitive or negotiated sale in a manner, for a price, and at rates the Commission determines to be in its best interests; (2) issue the bonds in serial maturity form or with a single fixed date of maturity; (3) make the bonds redeemable wholly or partly by lot or otherwise after a certain period or date; (4) issue the bonds subject to registration as to principal and interest or as to principal only; (5) establish and maintain a sinking fund for the payment of the maturing principal and interest of the bonds; (6) set the interest rate payable on the bonds at the rate the Commission determines to be advantageous and in the public interest or otherwise establish the manner of determining the interest rate; and (7) generally determine all of the provisions of the bonds. (e) (1) Montgomery County and Prince George's County shall guarantee the payment of principal of and interest on the bonds issued under this subsection by endorsement as provided under Sec. 18-204 of this subtitle. (2) The bonds shall be issued on the full faith and credit of the county guaranteeing them. (3) The principal of and interest on the bonds shall be paid from the proceeds of the collection of the taxes authorized to provide funds for servicing the bonds in substitution for which the bonds are issued. (4) The funds needed for principal and interest payments of the bonds authorized may not be preferred in the division of tax proceeds over the funds needed for principal and interest payment or any other issue of bonds payable. #### Section 18-208 (a) (1) The Commission may borrow money to meet its expenses, including debt service for any bonds issued under this title, within either county by issuing tax anticipation notes. (2) The tax anticipation notes shall: (i) bear interest at an annual rate that the Commission determines to be advantageous and in the public interest; and (ii) be signed by the chair and secretary-treasurer of the Commission by manual or facsimile signature. (3) The tax anticipation notes may be issued to any bank, institution, or person willing to lend the money. (b) The Commission may reissue or renew its tax anticipation notes at an interest rate that the Commission determines to be advantageous. (c) The total amount borrowed under this section and outstanding in any fiscal year may not exceed 75% of the total revenues received by the Commission from the taxes imposed and derived during the Commission's preceding fiscal year under this title. (d) Money borrowed during any fiscal year shall be repaid not later than during the next fiscal year from the revenues derived from the taxes under this title. #### Section 18-209 (a) The revenues derived from the collection of the taxes authorized under this title shall pay the principal of and interest on bonds issued under this title. (b) (1) If the revenues from the taxes are inadequate to pay the principal of and interest on the bonds, the county guaranteeing the bonds shall impose, in each year the taxes are inadequate, an additional tax on all assessable property in the portion of the metropolitan district in that county sufficient to make up the deficiency. (2) If the revenues from the additional tax under paragraph (1) of this subsection are inadequate, the county shall impose a tax on all assessable property in the corporate limits of the county sufficient to pay the deficiency in the revenues available to pay the principal of and interest on the bonds. (c) This division may not be construed to modify the limitations on the powers of the Commission to issue bonds under Sec.Sec. 18-203 through 18-207 of this subtitle or in any other law. #### Section 18-210 The principal amount of bonds issued under this title, the interest on the bonds, transfer of the bonds, and any income derived from the bonds, including any profit from the sale or transfer of the bonds, are exempt from State and local taxes. #### Section 18-211 The sale of the bonds under this title is exempt from Sec.Sec. 19-205 and 19-206 of the Local Government Article. --- Md. Code Ann., Land Use (as displayed at mgaleg.maryland.gov, October 16, 2026)