Title 3. Financing by Department — Subtitle 5. County Transportation Revenue Bonds

Issue revenue bonds on behalf of and for the benefit of participating counties;

Loan the proceeds of those bonds to the participating counties for use in paying the counties’ cost of transportation facilities; and

Provide for the payment of the principal of and interest on the bonds solely from the revenues pledged for that purpose by the counties participating in an issue of bonds under this subtitle.

The date or dates of issue;

The date or dates and amount or amounts of maturities, which need not be in equal principal amounts or consecutive annual installments, but a bond may not be issued to mature later than 30 years after the date of its issue;

The rate or rates of interest payable on the bonds, or the manner of determining the rate or rates of interest, and the date or dates of payment of interest;

The tenor, form or forms, denomination or denominations, manner of execution, and place or places of payment of the principal of and interest on the bonds, which may be by any bank or trust company within or without this State;

Whether the bonds are to be issued in coupon, registered or book entry form and whether provision is to be made for the registration of the principal only of coupon bonds, for the reconversion of fully registered bonds into coupon form, and for the replacement of bonds that are mutilated, lost, or destroyed;

Whether the bonds are to be sold at public or private sale, as determined by the Secretary;

If the bonds are to be sold at public sale, the form of notice of sale, which shall outline the terms and conditions of the sale, and the form of advertisement of a summary notice of sale, which shall be published at least once in an appropriate newspaper of general circulation as determined by the Secretary;

Whether all or any part of the bonds are redeemable before maturity and, if so, the terms, conditions, and prices of redemption; and

Any other matter relating to the form, terms, conditions, issuance, sale, and delivery of the bonds.

The resolution may provide that the Secretary may postpone the time for receipt of proposals for the bonds without republishing the form of advertisement for the bonds.

Bonds shall be executed by the manual or facsimile signature of the Secretary.

Other signatures on the bonds may be either manual or facsimile.

Subject to then existing agreements with bondholders or noteholders, provisions pledging or assigning all or any part of the revenues of the participating counties, mortgages or loans made by the participating counties or the security therefor, the proceeds of any bonds issued under this subtitle, or any combination of these and any other assets of the participating counties to secure payment of bonds;

Provisions protecting and enforcing rights and remedies of bondholders, including restrictions on the rights of holders, and covenants setting forth duties of or restrictions on the Department and the participating counties;

Provisions appointing one or more trust companies or banks with trust powers to act as depositaries of the proceeds of any bonds or notes. Any depositary bank or trust company incorporated in the State may furnish indemnifying bonds or pledge securities, as required by the Department;

Provisions as to custody, safeguarding, application, and investment of funds credited pursuant to this subtitle;

Provisions establishing and controlling all aspects of reserve funds, including debt service reserve funds;

Provisions for the payment of debt service on bonds and refunding bonds, including redemption premiums and interest; or

Any other provisions deemed reasonable and proper for the security of bondholders.

Neither the State nor the Department is obligated to pay the principal of or the interest on them; and

Neither the faith and credit nor the taxing power of the State or the Department is pledged to the payment of the principal of or the interest on them.

Its desire to participate in the proceeds of the next series of bonds to be issued under this subtitle;

The proposed amount of its participation; and

A description of the revenues to be pledged by the county to pay debt service on the bonds.

After making all necessary determinations, the Department shall notify the counties of the amount of bonds of the next series that the Department will issue on behalf of the counties.

The Department shall then issue and sell that amount of bonds under this subtitle as a part of the next series of bonds and shall disburse the net proceeds of that amount of the bonds pursuant to appropriate agreements with the participating counties, after deducting the counties’ proportionate share of the cost of the issuance of the bonds and the appropriate share of the Department’s costs of administering the program established under this subtitle which is attributable to each bond issue.

The county’s participation in the program has been approved by a local ordinance or resolution enacted after public notice and public hearings as required in accordance with State and local public laws, charters, or ordinances; and

A list of projects which may be undertaken under the local program has been available for review by the public at the public hearing.

Any referendum requirements of the charter or other local law of the counties; and

Any limitation of the charter or local law on the rate of taxation or the aggregate amount of taxes that may be levied within the counties.

Specify that the bonds to be issued on behalf of the county will be repaid by the county under such terms and conditions as the Department and the counties deem appropriate;

Describe the source and nature of revenues the county will pledge to the repayment of the bonds, which revenues may include highway user revenues under § 8-401 of this article or any other revenues of the county; and

Describe any other terms or conditions that the Department deems necessary or appropriate to assure prompt and full repayment of the bonds.

In order to enhance the security or the marketability of the bonds, a county may agree with the Department to pledge any moneys that the county is entitled to receive from the county’s share of highway user revenues, but a county may not pledge moneys that are pledged or dedicated to another purpose by State law.

In the event of such pledge, the State Comptroller and the State Treasurer may cause in accordance with the terms of such agreement such moneys to be paid to the Department or any trustee designated by the Department.

A general obligation of the county to which its full faith and credit and unlimited taxing power is pledged and which may not be subject to annual appropriation by the county; or

Any other obligation which the county is authorized to undertake.

Is a limited obligation of the county repayable from assets and revenues as provided in the agreement; or

Is subject to annual appropriation by the county.

Refunding any bonds issued under this subtitle, including the payment of any redemption premium on the bonds and any interest accrued or to accrue to the date of redemption of the bonds; and

Refunding any bonds issued under Subtitle 3 of this title.