<section article="gpu" article_name="Public Utilities" number="22-101" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <text>In this subtitle, “bond” means a bond, note, certificate of indebtedness, security, or other instrument evidencing debt issued and sold or offered for sale in accordance with law.</text> </section> <section article="gpu" article_name="Public Utilities" number="22-102" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <text>The Commission may issue bonds of the sanitary district in amounts necessary to carry on its work, including for:</text> <level label="1"> <text>acquisition, design, construction, reconstruction, establishment, extension, enlargement, or condemnation of the water and sewer systems in the sanitary district or in an area where extension of the systems may be authorized by law;</text> </level> <level label="2"> <text>acquisition of land or equipment for, or construction, remodeling, enlargement, or replacement of any office or operating building necessary to administer or operate the systems; or</text> </level> <level label="3"> <text>design and construction of trunk sewers and sewers or portions of sewer lines required to relieve septic tank failures and for which no front foot benefit charges can be collected as determined by the Commission, and sewage pumping stations and sewage disposal facilities, including reimbursement to the District of Columbia or other federal authorities for any construction within the District of Columbia.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission may issue bonds of the sanitary district for the acquisition of capital equipment in amounts necessary to carry on its work, including:</text> <level label="i"> <text>computer equipment;</text> </level> <level label="ii"> <text>laboratory equipment;</text> </level> <level label="iii"> <text>maintenance field and yard equipment;</text> </level> <level label="iv"> <text>office equipment;</text> </level> <level label="v"> <text>telecommunication equipment; and</text> </level> <level label="vi"> <text>trucks and fleet vehicles.</text> </level> </level> <level label="2"> <text>The bonds may be issued only to finance the acquisition of equipment:</text> <level label="i"> <text>with a useful life of 4 to 7 years;</text> </level> <level label="ii"> <text>that the Commission expects to finance over a period of 4 years or less; and</text> </level> <level label="iii"> <text>for which the Commission budgets accordingly.</text> </level> </level> <level label="3"> <text>The principal of the bonds issued under this subsection shall be payable annually beginning not more than 1 year after the date of issue.</text> </level> <level label="4"> <text>The bonds issued under this subsection shall mature not more than 4 years after the date of issue.</text> </level> <level label="5"> <text>The aggregate amount of bonds issued under this subsection outstanding at any time may not exceed $15,000,000, subject to annual upward adjustment in accordance with the Consumer Price Index – All Urban Consumers (CPI–U), for the Washington, DC–MD–VA metropolitan area, over the base year 1997.</text> </level> </level> <level label="c"> <text>Except as otherwise provided in this section, bonds issued under this section shall be issued as serial bonds with the principal payable annually, beginning no later than 3 years from the date of issue.</text> </level> <level label="d"> <level label="1"> <text>The bonds shall:</text> <level label="i"> <text>be issued in denominations determined by the Commission;</text> </level> <level label="ii"> <text>bear interest annually at rates the Commission determines to be advantageous to the sanitary district and in the public interest; and</text> </level> <level label="iii"> <text>mature no later than 40 years from the date of issue.</text> </level> </level> <level label="2"> <text>The bonds may be:</text> <level label="i"> <text>registered or coupon bonds; or</text> </level> <level label="ii"> <text>registrable as to principal with interest represented by coupons.</text> </level> </level> <level label="3"> <text>The interest on the bonds shall be payable semiannually.</text> </level> </level> <level label="e"> <level label="1"> <text>Notwithstanding any other provision of law, the Commission may issue bonds that have a maturity of more than 1 year as fully registered bonds without coupons.</text> </level> <level label="2"> <text>The Commission may determine the form of the bonds issued under paragraph (1) of this subsection for the purposes of:</text> <level label="i"> <text>qualifying the interest on the bonds for exemption from federal income tax; and</text> </level> <level label="ii"> <text>conforming to standards and practices for the registration and transfer of bonds generally followed by banks and trust companies acting as registrars and transfer agents of bonds, including:</text> <level label="1"> <text>signing of bonds by facsimile signatures of Commission officers;</text> </level> <level label="2"> <text>authentication of bonds by the manual signature of an officer of a bank or trust company signing as the registrar or transfer agent;</text> </level> <level label="3"> <text>maintenance by registrars or transfer agents of records of owners of bonds;</text> </level> <level label="4"> <text>complying with the standard record date system for payment of interest;</text> </level> <level label="5"> <text>issuing bonds on the basis of book entries and certificates; and</text> </level> <level label="6"> <text>complying with requirements for the form of bond that is acceptable to central depositories used in the marketing and trading of municipal bond issues.</text> </level> </level> </level> </level> <level label="f"> <text>The bonds of the sanitary district or of the Commission are forever exempt from taxation by the State and counties and municipalities in the State.</text> </level> <level label="g"> <text>The bonds may be made redeemable before maturity at the option of the Commission at the prices and under terms and conditions that the Commission sets before the bonds are issued.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-103" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <text>Except as provided in subsection (b) of this section, the aggregate principal amount of bonds outstanding at any time that will not reach full maturity within 5 years from the date of issue may not exceed the greater of:</text> <level label="1"> <text>the sum of:</text> <level label="i"> <level label="3"> <text>8% of the total assessable base of all real property assessed for county tax purposes within the sanitary district; and</text> </level> </level> <level label="ii"> <text>7% of the total assessable personal property and operating real property described under § 8–109(c) of the Tax – Property Article assessed for county tax purposes within the sanitary district; or</text> </level> </level> <level label="2"> <text>the sum of:</text> <level label="i"> <level label="3"> <text>8% of the total assessable base of all real property assessed for county tax purposes within the sanitary district as of July 1, 1997; and</text> </level> </level> <level label="ii"> <text>7% of the total assessable personal property and operating real property described under § 8–109(c) of the Tax – Property Article assessed for county tax purposes within the sanitary district as of July 1, 1997.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>In this subsection, “government obligation” means:</text> <level label="i"> <text>a direct obligation of the United States; or</text> </level> <level label="ii"> <text>an obligation unconditionally guaranteed as to principal and interest by the United States.</text> </level> </level> <level label="2"> <text>To calculate the maximum debt authorized under this section, the aggregate amount of bonds outstanding is reduced by:</text> <level label="i"> <text>the amount held in the joint sinking fund account for the payment of principal of the bonds; and</text> </level> <level label="ii"> <text>the amount of any bond for which there is irrevocably deposited:</text> <level label="1"> <text>cash; or</text> </level> <level label="2"> <text>government obligations maturing as to principal and interest at times and in amounts sufficient to provide adequate and complete payment of the principal or redemption price and interest as required on the bond.</text> </level> </level> </level> </level> <level label="c"> <text>Except as otherwise provided by an act of the General Assembly of Maryland, the maximum debt level authorized under this section applies to any bond issued under an act of the General Assembly of Maryland enacted on or after July 1, 1997.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-104" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <level label="1"> <text>The bonds shall be:</text> <level label="i"> <text>issued under the hand and seal of the Commission; and</text> </level> <level label="ii"> <text>guaranteed as to payment of principal and interest by Montgomery County and Prince George’s County.</text> </level> </level> <level label="2"> <text>Each bond shall contain the following statement:</text> <text>“The payment of interest when due and the principal at maturity is guaranteed by Montgomery and Prince George’s counties, Maryland”.</text> </level> </level> <level label="b"> <level label="1"> <text>The bonds of the sanitary district shall be signed:</text> <level label="i"> <text>by the chair, secretary, and treasurer of the Commission; or</text> </level> <level label="ii"> <text>if authorized by the Commission, by any two commissioners.</text> </level> </level> <level label="2"> <text>The official seal of the Commission shall be impressed on a bond of the sanitary district.</text> </level> <level label="3"> <text>For bonds issued for the purposes described under § 22–102(a)(1) and (2) of this subtitle, the Commission may authorize:</text> <level label="i"> <text>any of its officials to sign a bond by facsimile signature; and</text> </level> <level label="ii"> <text>a facsimile of the official seal to be printed on the bond.</text> </level> </level> <level label="4"> <text>For bonds issued for the purposes described under § 22–102(a)(3) of this subtitle, the Commission may authorize:</text> <level label="i"> <text>any of its officials to sign a bond by facsimile signature, provided that the bond is manually signed by at least one official; and</text> </level> <level label="ii"> <text>a facsimile of the official seal to be printed on the bond.</text> </level> </level> </level> <level label="c"> <text>Within 20 days after the bonds are presented by the Commission for signing, the guaranty or endorsement by Montgomery County and Prince George’s County shall be signed on each of the bonds on behalf of each county by the county executives of Montgomery County and Prince George’s County, or by the county executive’s designee, by facsimile or manual signature as the county executive determines.</text> </level> <level label="d"> <text>The liability under the guarantee for each county is in the same proportion that the assessable base of that part of that county within the sanitary district bears to the assessable base of the sanitary district.</text> </level> <level label="e"> <level label="1"> <text>The Commission may waive the guarantee required under subsection (d) of this section, if the Commission determines that:</text> <level label="i"> <text>the waiver would not seriously affect the sale of the bonds of the sanitary district; and</text> </level> <level label="ii"> <text>money market conditions justify the sale of the bonds of the sanitary district without the guarantee.</text> </level> </level> <level label="2"> <text>The waiver of the guarantee under paragraph (1) of this subsection on one issue of bonds may not be construed to be a waiver of the guarantee of future bond issues.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-105" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <level label="1"> <text>If a bond issued by the Commission is destroyed, lost, or mutilated, the Commission may execute and deliver to the holder or registered owner of the bond a new bond with the same date, number, maturity, and tenor:</text> <level label="i"> <text>on conditions to evidence ownership and the destruction or loss of the bond that the Commission determines; or</text> </level> <level label="ii"> <text>in exchange and substitution for and cancellation of the mutilated bond and any interest coupons.</text> </level> </level> <level label="2"> <text>The Commission may require indemnity and payment of charges in connection with the exchange or substitution of a bond.</text> </level> </level> <level label="b"> <level label="1"> <text>If the destroyed, lost, or mutilated bond was guaranteed by Montgomery County and Prince George’s County, the new bond issued in substitution shall be endorsed with a guaranty identical to the guaranty on the destroyed, lost, or mutilated bond.</text> </level> <level label="2"> <text>The endorsement shall be signed as provided in § 22–104 of this subtitle.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-106" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <level label="1"> <text>To retire and pay the interest on bonds issued under this subtitle, each year the county councils of Montgomery County and Prince George’s County shall impose against the assessable property that is in the sanitary district a tax sufficient to pay the principal of and interest on the bonds, as and when due and until paid in full.</text> </level> <level label="2"> <text>The tax is to be determined, imposed, collected, and paid over to the Commission as provided in this section.</text> </level> <level label="3"> <text>Each year the Commission shall determine the amount necessary to pay the principal and interest on bonds issued to provide funds for the construction, remodeling, enlargement, or replacement of any office or operating building.</text> </level> <level label="4"> <level label="i"> <text>The Commission shall set aside the amount determined under paragraph (3) of this subsection from water service charges, sewer usage charges, house connection charges, and any other charges imposed by the Commission as the Commission determines to be fair and equitable.</text> </level> <level label="ii"> <text>The amount set aside shall be deducted from the amount that the Commission determines to be necessary to be raised by direct taxation under this section on certification to the county councils of Montgomery County and Prince George’s County.</text> </level> </level> </level> <level label="b"> <text>At least 30 days before the taxable year for property taxes, the county executives of Montgomery County and Prince George’s County shall certify to the Commission the total valuation of assessable property within the sanitary district in each county.</text> </level> <level label="c"> <level label="1"> <text>The Commission shall determine the amount necessary, for the next taxable year, to pay:</text> <level label="i"> <text>interest on all outstanding bonds;</text> </level> <level label="ii"> <text>principal of all serial bonds maturing during the year; and</text> </level> <level label="iii"> <text>the proportionate part of principal of all outstanding sinking fund bonds as determined by the usual table of redemption of bonds by annual deposit in a sinking fund on interest.</text> </level> </level> <level label="2"> <text>After deducting all amounts in hand applicable to payment of interest and principal on the bonds, the Commission shall certify to the county councils of Montgomery County and Prince George’s County the number of cents per $100 necessary to raise the amount determined under paragraph (1) of this subsection.</text> </level> </level> <level label="d"> <level label="1"> <text>Each year the county councils of Montgomery County and Prince George’s County shall impose a tax in the amount determined under subsection (c)(1) of this section on all assessable property within the sanitary district.</text> </level> <level label="2"> <text>The taxes imposed under this section shall:</text> <level label="i"> <text>have the same status as county taxes; and</text> </level> <level label="ii"> <text>be imposed and collected by the tax collecting authority for each county as county taxes.</text> </level> </level> </level> <level label="e"> <text>Every 60 days, each county shall pay to the Commission the taxes collected under this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-107" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <level label="1"> <text>The amount collected by the Commission for benefits imposed against property for water supply and sewer construction under Title 25, Subtitle 2 of this article shall be set aside in a separate fund known as the Current Bond Fund.</text> </level> <level label="2"> <level label="i"> <text>The Current Bond Fund shall be used to pay interest on all outstanding bonds.</text> </level> <level label="ii"> <text>The balance of the Current Bond Fund shall be prorated monthly and applied to:</text> <level label="1"> <text>the payment of the principal of maturing serial bonds; and</text> </level> <level label="2"> <text>the payment into the joint Sinking Fund Account, as provided under § 22–108 of this subtitle, of the proportionate part of the principal of outstanding sinking fund bonds as the outstanding par value of both types of bonds bear to each other.</text> </level> </level> </level> </level> <level label="b"> <text>To determine the amount necessary to be imposed under § 22–106 of this subtitle, the Commission shall deduct the amount to its credit in the Current Bond Fund account from the amount necessary to be raised in any 1 year for interest on all outstanding bonds.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-108" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <level label="1"> <text>From the money received from the taxes imposed under § 22–106 of this subtitle together with the amount in hand to the credit of the Current Bond Fund or the amount applicable to the payment of interest and principal on the bonds, the Commission shall:</text> <level label="i"> <text>pay all interest on the bonds as and when due; and</text> </level> <level label="ii"> <text>pay or reserve a sufficient amount of money to pay the serial bonds becoming due during the taxable year.</text> </level> </level> <level label="2"> <text>After making the distributions required under paragraph (1) of this subsection, the Commission shall deposit in one or more banks in Montgomery County or Prince George’s County, to the credit of both counties and the Commission, as a joint fund to be known as the Sinking Fund Account, the amount raised for the payment of the proportionate part of the principal of the sinking fund bonds.</text> </level> </level> <level label="b"> <text>The Commission and Montgomery County and Prince George’s County shall invest money in the Sinking Fund Account in any bonds in which the U.S. Treasury Department authorizes national banks to invest savings or trust funds.</text> </level> <level label="c"> <text>If receipts from the tax or other sources are inadequate to pay the principal of the serial bonds becoming due during the taxable year and to deposit the principal payment on the sinking fund bonds, the deficiency shall be added to and collected in the following year’s tax levy.</text> </level> <level label="d"> <text>Before the first taxable year for property taxes, the Commission may pay the interest on any bonds it issues out of the proceeds of the sale of the bonds.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-109" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <text>To ensure the prompt payment of interest and provision for the payment of the principal on bonds issued under this subtitle:</text> <level label="1"> <text>the prompt and proper performance of the acts required under §§ 22–106 and 22–108 of this subtitle is specially enjoined; and</text> </level> <level label="2"> <text>a person who is required to act under §§ 22–106 and 22–108 of this subtitle:</text> <level label="i"> <text>shall perform the acts required under those sections;</text> </level> <level label="ii"> <text>shall pay over any funds as required under those sections; and</text> </level> <level label="iii"> <text>may not use any part of the funds for any other purpose than for the payment of principal and interest on the bonds.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-110" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Commission may borrow money in anticipation of taxes, sale of bonds, or other revenue of the fiscal year in which the loan is made or the next succeeding fiscal year to:</text> <level label="i"> <text>pay the principal and interest of bonds due or to become due within 4 months;</text> </level> <level label="ii"> <text>pay the interest becoming due on any bonds within 4 months and not otherwise adequately provided for; or</text> </level> <level label="iii"> <text>meet payments required to be made to employees and laborers and not otherwise provided for.</text> </level> </level> <level label="2"> <text>The loan shall be payable not later than the end of the fiscal year after the year in which the loan is made.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission shall issue negotiable notes for all money borrowed under subsection (a) of this section.</text> </level> <level label="2"> <text>The notes may be renewed and money may be borrowed on new notes to pay any indebtedness.</text> </level> <level label="3"> <text>The notes and loans shall mature within the time limit for the payment of the original loan.</text> </level> <level label="4"> <text>The Commission shall authorize, by resolution, the notes and set:</text> <level label="i"> <text>the actual or maximum face amount of the notes;</text> </level> <level label="ii"> <text>the actual or maximum rate of interest to be paid on the amount borrowed; and</text> </level> <level label="iii"> <text>the actual or approximate maturity of the notes.</text> </level> </level> <level label="5"> <text>The Commission shall determine the form and manner of execution of the notes.</text> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Commission may determine the manner in which the notes may be disposed of.</text> </level> <level label="2"> <text>The aggregate amount of notes outstanding at any one time may not exceed an amount equal to the total principal of and interest on bonds of the sanitary district due and payable in the fiscal year in which the notes are issued.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-111" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <text>Each year the Commission shall:</text> <level label="1"> <text>determine the amount necessary to pay the principal and interest requirements of the bonds; and</text> </level> <level label="2"> <text>set the water service charge of the sanitary district at a rate sufficient to pay:</text> <level label="i"> <text>the cost of the service; and</text> </level> <level label="ii"> <text>the requirements of bonds, issued and outstanding, that are to be paid out of the water service.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-112" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <text>The amount of water service charges and sewer usage charges collected each year for the payment of principal and interest due on outstanding bonds shall be deducted from the amount that the Commission has determined is necessary to be raised by an ad valorem tax on certification to the county councils of Montgomery County and Prince George’s County.</text> </section> <section article="gpu" article_name="Public Utilities" number="22-113" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <level label="1"> <text>Subject to written approval of the county executives and county councils of Montgomery County and Prince George’s County, the Commission, on behalf of the sanitary district, may:</text> <level label="i"> <text>borrow money for any purpose for which bonds of the Commission are to be issued; and</text> </level> <level label="ii"> <text>issue negotiable bond anticipation notes of the Commission for any money borrowed in anticipation of the issuance of the bonds or of other revenues for capital expenditures.</text> </level> </level> <level label="2"> <text>The aggregate amount of all bond anticipation notes outstanding under this section at any one time may not exceed $85,000,000.</text> </level> <level label="3"> <text>The aggregate amount of bond anticipation notes issued under this section in anticipation of the issuance of bonds that are subject to the 7% limitation under § 22–103(a) of this subtitle, together with the aggregate amount of bonds then outstanding that are subject to the limitation, may not exceed the 7% limitation.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as otherwise provided for emergent purposes under subsection (d) of this section, bond anticipation notes, including any renewals under item (ii) of this paragraph:</text> <level label="i"> <text>shall mature within 5 years from the date the notes are first issued; or</text> </level> <level label="ii"> <text>if issued for a period of less than 5 years, may be renewed for successive periods not to exceed 1 year each.</text> </level> </level> <level label="2"> <text>The notes shall be payable within 5 years after the date of the first issue.</text> </level> </level> <level label="c"> <text>The notes shall:</text> <level label="1"> <text>be issued in denominations determined by the Commission;</text> </level> <level label="2"> <text>bear interest as provided in § 22–102(d) of this subtitle;</text> </level> <level label="3"> <text>be payable at or before maturity; and</text> </level> <level label="4"> <text>be in the form and executed in the manner that the Commission determines.</text> </level> </level> <level label="d"> <level label="1"> <level label="i"> <text>Except as provided in paragraph (2) of this subsection, bond anticipation notes shall be sold at public sale.</text> </level> <level label="ii"> <text>Renewal notes may be exchanged for outstanding notes on terms that the Commission determines.</text> </level> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection, the Commission may sell the notes at a negotiated sale if:</text> <level label="i"> <text>the Commission determines that, for economic, engineering, or financial administration purposes, the requirements for the funds require the sale of the notes at an immediate or earlier time than is possible through the procedures of a public sale; and</text> </level> <level label="ii"> <text>the amount of bond anticipation notes sold at negotiated sale, issued or outstanding at any one time, does not exceed $10,000,000.</text> </level> </level> <level label="3"> <text>Before concluding a negotiated sale, the Commission shall negotiate with at least two recognized banking institutions that purchase bond anticipation notes and obtain the terms most favorable in the Commission’s interest.</text> </level> <level label="4"> <text>Bond anticipation notes sold at a negotiated sale:</text> <level label="i"> <text>shall mature within a period not exceeding 180 days; and</text> </level> <level label="ii"> <text>may be renewed not more than one time for an additional period not to exceed 180 days.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, bond anticipation notes shall be paid from the proceeds of the bonds in anticipation of which they are issued.</text> </level> <level label="2"> <level label="i"> <text>The Commission may retire the notes from funds available for the payment of the bonds authorized by the Commission.</text> </level> <level label="ii"> <text>The amount of the bonds authorized shall be reduced by the amount of the retired notes.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>Bond anticipation notes issued under this section are general obligations of the Commission.</text> </level> <level label="2"> <text>The full faith, credit, and taxing power of the Commission shall be pledged for the repayment of the notes.</text> </level> </level> <level label="g"> <level label="1"> <text>Montgomery County and Prince George’s County shall guarantee the bond anticipation notes as to payment of principal and interest substantially in the manner and form and with the effect provided for the guarantee of the construction bonds of the Commission issued under § 22–102(a)(1) of this subtitle.</text> </level> <level label="2"> <text>The Commission may waive the required guarantee.</text> </level> </level> <level label="h"> <text>Bond anticipation notes issued under this section, including the interest on the notes, are forever exempt from taxation by the State and counties and municipalities in the State.</text> </level> <level label="i"> <text>The powers and authority granted under this section are in addition and supplemental to the powers and authority granted under any other law and shall be liberally construed to effectuate the purposes of this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-114" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <text>The Commission may borrow money and issue refunding bonds to refund bonds issued and outstanding by the Commission if:</text> <level label="1"> <text>the county executives and county councils of Montgomery County and Prince George’s County approve the plan for the issuance of refunding bonds; and</text> </level> <level label="2"> <text>the Commission determines that issuing refunding bonds will result in total savings in debt service costs, directly or through any debt restructuring.</text> </level> </level> <level label="b"> <text>The Commission shall authorize the issuance of refunding bonds by resolution that may include:</text> <level label="1"> <text>the date of the refunding bonds;</text> </level> <level label="2"> <text>the maturity dates of the refunding bonds, which may not exceed 40 years from the date of issue;</text> </level> <level label="3"> <text>the interest rates on the refunding bonds, which may not exceed 10% annually;</text> </level> <level label="4"> <text>the denominations of the refunding bonds;</text> </level> <level label="5"> <text>the form of the refunding bonds, which may be coupon or registered;</text> </level> <level label="6"> <text>registration or conversion privileges;</text> </level> <level label="7"> <text>the manner of executing the refunding bonds;</text> </level> <level label="8"> <text>the manner of payment at places in or outside of the State;</text> </level> <level label="9"> <text>terms for redemption before maturity;</text> </level> <level label="10"> <text>terms for replacement of mutilated, destroyed, stolen, or lost bonds; and</text> </level> <level label="11"> <text>any other terms, conditions, or covenants.</text> </level> </level> <level label="c"> <text>Refunding bonds issued to refund outstanding bonds for which front foot benefit charges have been imposed shall mature on or before 1 year after the date set for the payment of the final installment of the front foot benefit charge.</text> </level> <level label="d"> <level label="1"> <text>Refunding bonds may be:</text> <level label="i"> <text>exchanged for bonds being refunded;</text> </level> <level label="ii"> <text>sold at public sale; or</text> </level> <level label="iii"> <text>subject to paragraph (2) of this subsection, sold at a negotiated sale in an open meeting.</text> </level> </level> <level label="2"> <text>Refunding bonds may be sold at a negotiated sale if the Commission determines:</text> <level label="i"> <text>that a public sale would be impracticable to effectuate the purpose of the refunding bonds; and</text> </level> <level label="ii"> <text>the price, terms, and conditions are in the best interest of the Commission.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>At least 45 days before the sale or exchange of any refunding bonds, the Commission shall deliver its plan on the issuance of the refunding bonds to the county executives and county councils of Montgomery County and Prince George’s County.</text> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, the Commission may not sell or exchange the refunding bonds unless the plan under paragraph (1) of this subsection is approved by the county executives and county councils of Montgomery County and Prince George’s County.</text> </level> <level label="3"> <level label="i"> <text>On or before 30 days after the delivery of the plan, the county executives and county councils of Montgomery County and Prince George’s County shall approve or disapprove of the plan.</text> </level> <level label="ii"> <text>Failure of a county executive or county council of Montgomery County or Prince George’s County to act within 30 days is deemed as approval of the plan by that county.</text> </level> </level> <level label="4"> <text>The county executives and county councils of Montgomery County and Prince George’s County may waive the time period requirements under this subsection.</text> </level> </level> <level label="f"> <text>If an officer whose signature or facsimile signature appears on a refunding bond or coupon ceases to be an officer before the delivery of the refunding bond, the signature or facsimile is valid and sufficient as if the officer remained in office until delivery.</text> </level> <level label="g"> <text>Refunding bonds issued to refund bonds guaranteed as to payment of principal and interest by Montgomery County or Prince George’s County may be guaranteed in the same manner and form as under § 22–104 of this subtitle.</text> </level> <level label="h"> <text>Refunding bonds authorized under this section are:</text> <level label="1"> <text>in addition to any other bonds authorized under this subtitle; and</text> </level> <level label="2"> <text>included in computing the amount of bonds that may be issued under the 7% limitation under § 22–103 of this subtitle.</text> </level> </level> <level label="i"> <text>Refunding bonds authorized under this section are forever exempt from taxation by the State and counties and municipalities in the State.</text> </level> <level label="j"> <text>The powers granted under this section are not subject to the provisions of any other law in conflict with the powers.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-115" title_number="22" title_name="Bonds and Notes" subtitle_number="1" subtitle_name="General Obligation Bonds and Notes"> <level label="a"> <text>The Commission may determine the amount of proceeds from the refunding bonds to deposit in a trust fund established in the name of the Commission with a trust company or other banking institution as trustee.</text> </level> <level label="b"> <level label="1"> <text>Money in the trust fund may be invested and reinvested in direct obligations of, or obligations the principal of which and the interest on which is guaranteed by, the United States.</text> </level> <level label="2"> <text>The Commission may provide for the use of money in the trust fund to pay all or part of the principal, interest, and redemption premium of the bonds being refunded and of the refunding bonds.</text> </level> <level label="3"> <text>The proceeds of the refunding bonds shall be invested and applied so that the principal, interest, and redemption premium on the bonds being refunded is paid in full on maturity, redemption, or interest payment dates.</text> </level> </level> <level label="c"> <text>On or after the earliest redemption date, the Commission may call for redemption any bonds being refunded that are subject to redemption before the stated maturity dates.</text> </level> <level label="d"> <level label="1"> <text>The Commission may issue refunding bonds in one or more series.</text> </level> <level label="2"> <level label="i"> <text>The Commission shall determine the principal amount of each series required to achieve the purpose for the issuance of the refunding bonds.</text> </level> <level label="ii"> <text>The principal amount of the refunding bonds may be greater than the principal amount of bonds being refunded.</text> </level> </level> </level> <level label="e"> <text>In addition to or in lieu of any other money or security that the Commission may provide for the payment or security of the refunding bonds, the Commission may make all or part of the refunding bonds payable from money in and secured by the trust fund.</text> </level> <level label="f"> <level label="1"> <text>To retire and pay interest on refunding bonds issued under § 22–114 of this subtitle, each year the county councils of Montgomery County and Prince George’s County shall impose a tax on the assessable property within the sanitary district sufficient to pay:</text> <level label="i"> <text>the interest on the bonds as it becomes due; and</text> </level> <level label="ii"> <text>the principal and redemption premium, if any, of the bonds at their maturity or redemption.</text> </level> </level> <level label="2"> <text>If the series of refunding bonds is issued to refund stormwater management bonds, the county council of the respective county provided with the proceeds of the bonds being refunded shall impose the tax.</text> </level> <level label="3"> <text>The counties shall determine, impose, collect, and pay the tax to the Commission as provided under § 22–106 of this subtitle.</text> </level> <level label="4"> <text>The provisions of § 22–106 of this subtitle apply to the refunding bonds issued under § 22–114 of this subtitle.</text> </level> <level label="5"> <text>The Commission shall make adequate provision for extending to its rate payers the benefit of savings in debt service costs derived through the issuance of any refunding bonds issued under § 22–114 of this subtitle.</text> </level> </level> <level label="g"> <text>Any provision of law requiring the setting and collecting of front foot benefit charges for the payment of the principal of and the interest on the outstanding bonds being refunded shall apply to the payment of the refunding bonds issued under § 22–114 of this subtitle to refund outstanding bonds.</text> </level> <level label="h"> <text>The powers granted under this section are not subject to the provisions of any other law in conflict with the powers.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-201" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <level label="a"> <text>This subtitle shall be liberally construed to carry out its purposes.</text> </level> <level label="b"> <text>The purpose of this subtitle is to authorize the Commission to issue bonds in a manner that provides flexibility without imposing additional debt burdens on the assessable tax base of the sanitary district, so as to yield overall savings to the residents of the sanitary district.</text> </level> <level label="c"> <text>This subtitle does not apply to debt issued by the Commission under Subtitle 1 of this title.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-202" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <level label="a"> <text>The Commission may issue and sell revenue bonds to finance or refinance any of the Commission’s costs of a project authorized under this division.</text> </level> <level label="b"> <level label="1"> <text>Revenue bonds may finance:</text> <level label="i"> <text>necessary expenses of preparing, printing, selling, and issuing the bonds;</text> </level> <level label="ii"> <text>funding of reserves;</text> </level> <level label="iii"> <text>payment of interest related to financing a project in the amounts and for the period that the Commission determines; and</text> </level> <level label="iv"> <text>initial program development costs.</text> </level> </level> <level label="2"> <text>Commission funding sources, other than revenue bond proceeds, may finance initial program development costs or other project costs only if those costs are reimbursed from project revenues.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commission may issue bonds under this subtitle only if the Commission authorizes the issuance by resolution.</text> </level> <level label="2"> <text>The resolution may authorize one or more officers of the Commission to determine or specify by bond order the matters that this subtitle requires to be determined or specified, or as may be necessary or advisable to accomplish the purposes of this subtitle.</text> </level> </level> <level label="d"> <text>Bonds issued under this subtitle, and their principal, interest, and any premium:</text> <level label="1"> <text>are limited obligations of the Commission;</text> </level> <level label="2"> <text>are payable solely from the revenues identified in the authorizing resolution or from other money made available for the payment; and</text> </level> <level label="3"> <text>do not constitute a pledge of the faith and credit of the Commission or of any entity with taxing power.</text> </level> </level> <level label="e"> <level label="1"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, bonds issued under this subtitle shall be dated, bear interest, and mature at the time that the Commission determines.</text> </level> <level label="ii"> <text>The bonds shall mature no later than 50 years after their date of issue.</text> </level> </level> <level label="2"> <text>The bonds may bear interest at variable rates of interest, in a manner and amounts that the Commission determines.</text> </level> <level label="3"> <text>The bonds shall be payable in the manner and at the times and places that the Commission determines.</text> </level> <level label="4"> <text>The bonds may be made redeemable before maturity at the option of the Commission at a price and under terms and conditions that the Commission determines.</text> </level> <level label="5"> <level label="i"> <text>The Commission shall determine the forms and manner of execution of the bonds.</text> </level> <level label="ii"> <text>The bonds may be executed by facsimile signature.</text> </level> </level> <level label="6"> <text>If an officer whose signature appears on a bond ceases to be an officer before the bond is delivered, the signature of the officer is valid and sufficient as if the officer had remained in office until delivery.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-203" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <text>Bonds issued under this subtitle are negotiable instruments under the laws of the State.</text> </section> <section article="gpu" article_name="Public Utilities" number="22-204" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <level label="a"> <text>The Commission may sell bonds issued under this subtitle:</text> <level label="1"> <text>at public or private sale; and</text> </level> <level label="2"> <text>in a manner and for a price that the Commission determines to be in the best interests of the Commission.</text> </level> </level> <level label="b"> <text>Sections 19–205 and 19–206 of the Local Government Article do not apply to the issuance and sale of bonds authorized by this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-205" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <level label="a"> <text>The proceeds of each bond issuance under this subtitle shall be used solely for the projects for which the bonds were issued.</text> </level> <level label="b"> <text>The proceeds shall be distributed in the same manner and under any restrictions stated in:</text> <level label="1"> <text>the authorizing resolution of the Commission; or</text> </level> <level label="2"> <text>the trust agreement securing the bonds.</text> </level> </level> <level label="c"> <level label="1"> <text>If the proceeds of the bonds are less than the cost of the project for which the bonds were issued, by resolution, the Commission may issue and sell additional bonds in the same manner as the earlier issue to fund the amount of the deficit.</text> </level> <level label="2"> <text>Unless otherwise provided in the authorizing resolution or in the trust agreement securing the bonds, the additional bonds shall be:</text> <level label="i"> <text>considered to be of the same issue as the earlier issue; and</text> </level> <level label="ii"> <text>entitled to payment from the same funds as the earlier issue, without preference or priority of the earlier issue.</text> </level> </level> </level> <level label="d"> <text>If the proceeds of bonds issued under this subtitle exceed the cost of the project for which the bonds are issued, the surplus shall be used as the Commission determines.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-206" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <text>As determined by the Commission, bonds issued under this subtitle may be secured by or made payable from:</text> <level label="1"> <text>letters of credit;</text> </level> <level label="2"> <text>lines of credit;</text> </level> <level label="3"> <text>bond purchase agreements;</text> </level> <level label="4"> <text>bond insurance policies;</text> </level> <level label="5"> <text>guaranty agreements; and</text> </level> <level label="6"> <text>similar credit arrangements.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-207" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <level label="a"> <text>The Commission may provide by resolution for the issuance of revenue refunding bonds to refund bonds issued under this subtitle.</text> </level> <level label="b"> <text>To the extent applicable, revenue refunding bonds issued under this section shall conform to the requirements of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-208" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <text>Bonds issued under this subtitle are not subject to the limitations of §§ 22–102(b) and 22–1035 of this title.</text> </section> <section article="gpu" article_name="Public Utilities" number="22-209" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <level label="a"> <text>The Commission may enter into a trust agreement to secure bonds issued under this subtitle.</text> </level> <level label="b"> <text>The trustee under the trust agreement may be a bank or trust company that has the powers of a trust company in or outside the State.</text> </level> <level label="c"> <text>The trust agreement may pledge or assign all revenues from one or more projects as specified by the Commission.</text> </level> <level label="d"> <text>The trust agreement may provide for the protection and enforcement of the rights and remedies of the bondholders, including:</text> <level label="1"> <text>covenants setting forth the duties of the Commission regarding:</text> <level label="i"> <text>construction, acquisition, improvement, installation, maintenance, operation, repair, and insurance of a project; and</text> </level> <level label="ii"> <text>custody, safeguarding, and application of all money;</text> </level> </level> <level label="2"> <text>the establishment and funding of reserve funds;</text> </level> <level label="3"> <text>requirements that a project be constructed and paid for under the supervision and approval of consulting engineers employed or designated by the Commission; and</text> </level> <level label="4"> <text>statements of the rights and remedies of the bondholders and of the trustee, which may restrict the individual right of action of bondholders.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="22-210" title_number="22" title_name="Bonds and Notes" subtitle_number="2" subtitle_name="Revenue Bonds"> <level label="a"> <text>Bonds issued under this subtitle, including their interest and any profit from their sale or exchange, are exempt from taxation by the State and its counties and municipalities.</text> </level> <level label="b"> <text>If bonds are issued under this subtitle with the expectation that their interest may be excluded from the gross income of the bondholders, the Commission shall enter into all agreements and make all certifications necessary or advisable to show compliance with the applicable provisions of federal tax law.</text> </level> </section>