Title 22. Bonds and Notes — Subtitle 2. Revenue Bonds
Statutes in effect as of October 1, 2026.
Md. Code Ann., Pub. Util. § 22-201 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–201LinkCopy Citation
(a)
This subtitle shall be liberally construed to carry out its purposes.
(b)
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.
(c)
This subtitle does not apply to debt issued by the Commission under Subtitle 1 of this title.
Md. Code Ann., Pub. Util. § 22-202 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–202LinkCopy Citation
(a)
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.
(b)
(1)
Revenue bonds may finance:
(i)
necessary expenses of preparing, printing, selling, and issuing the bonds;
(ii)
funding of reserves;
(iii)
payment of interest related to financing a project in the amounts and for the period that the Commission determines; and
(iv)
initial program development costs.
(2)
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.
(c)
(1)
The Commission may issue bonds under this subtitle only if the Commission authorizes the issuance by resolution.
(2)
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.
(d)
Bonds issued under this subtitle, and their principal, interest, and any premium:
(1)
are limited obligations of the Commission;
(2)
are payable solely from the revenues identified in the authorizing resolution or from other money made available for the payment; and
(3)
do not constitute a pledge of the faith and credit of the Commission or of any entity with taxing power.
(e)
(1)
(i)
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.
(ii)
The bonds shall mature no later than 50 years after their date of issue.
(2)
The bonds may bear interest at variable rates of interest, in a manner and amounts that the Commission determines.
(3)
The bonds shall be payable in the manner and at the times and places that the Commission determines.
(4)
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.
(5)
(i)
The Commission shall determine the forms and manner of execution of the bonds.
(ii)
The bonds may be executed by facsimile signature.
(6)
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.
Md. Code Ann., Pub. Util. § 22-203 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–203LinkCopy Citation
Bonds issued under this subtitle are negotiable instruments under the laws of the State.
Md. Code Ann., Pub. Util. § 22-204 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–204LinkCopy Citation
(a)
The Commission may sell bonds issued under this subtitle:
(1)
at public or private sale; and
(2)
in a manner and for a price that the Commission determines to be in the best interests of the Commission.
(b)
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.
Md. Code Ann., Pub. Util. § 22-205 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–205LinkCopy Citation
(a)
The proceeds of each bond issuance under this subtitle shall be used solely for the projects for which the bonds were issued.
(b)
The proceeds shall be distributed in the same manner and under any restrictions stated in:
(1)
the authorizing resolution of the Commission; or
(2)
the trust agreement securing the bonds.
(c)
(1)
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.
(2)
Unless otherwise provided in the authorizing resolution or in the trust agreement securing the bonds, the additional bonds shall be:
(i)
considered to be of the same issue as the earlier issue; and
(ii)
entitled to payment from the same funds as the earlier issue, without preference or priority of the earlier issue.
(d)
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.
Md. Code Ann., Pub. Util. § 22-206 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–206LinkCopy Citation
As determined by the Commission, bonds issued under this subtitle may be secured by or made payable from:
(1)
letters of credit;
(2)
lines of credit;
(3)
bond purchase agreements;
(4)
bond insurance policies;
(5)
guaranty agreements; and
(6)
similar credit arrangements.
Md. Code Ann., Pub. Util. § 22-207 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–207LinkCopy Citation
(a)
The Commission may provide by resolution for the issuance of revenue refunding bonds to refund bonds issued under this subtitle.
(b)
To the extent applicable, revenue refunding bonds issued under this section shall conform to the requirements of this subtitle.
Md. Code Ann., Pub. Util. § 22-208 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–208LinkCopy Citation
Bonds issued under this subtitle are not subject to the limitations of §§ 22–102(b) and 22–1035 of this title.
Md. Code Ann., Pub. Util. § 22-209 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–209LinkCopy Citation
(a)
The Commission may enter into a trust agreement to secure bonds issued under this subtitle.
(b)
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.
(c)
The trust agreement may pledge or assign all revenues from one or more projects as specified by the Commission.
(d)
The trust agreement may provide for the protection and enforcement of the rights and remedies of the bondholders, including:
(1)
covenants setting forth the duties of the Commission regarding:
(i)
construction, acquisition, improvement, installation, maintenance, operation, repair, and insurance of a project; and
(ii)
custody, safeguarding, and application of all money;
(2)
the establishment and funding of reserve funds;
(3)
requirements that a project be constructed and paid for under the supervision and approval of consulting engineers employed or designated by the Commission; and
(4)
statements of the rights and remedies of the bondholders and of the trustee, which may restrict the individual right of action of bondholders.
Md. Code Ann., Pub. Util. § 22-210 (2026)
Title 22. Bonds and Notes
Subtitle 2. Revenue Bonds
§ 22–210LinkCopy Citation
(a)
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.
(b)
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.