In this subtitle the following words have the meanings indicated. “Bonds” means bonds issued under this subtitle and includes bonds, notes, or any other evidences of obligation. “Counties” means the counties of Maryland and includes the Mayor and City Council of Baltimore.

The purpose of this subtitle is to authorize the Department and the counties to establish a financing program, as an alternative to Subtitle 3 of this title, that will enable the counties to finance the cost of transportation facilities without the issuance of State or departmental debt.

Subject to the limitations of this subtitle, the Department from time to time may: 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 bonds shall be known as “County Transportation Revenue Bonds”. Bonds issued under this subtitle are not “County Transportation Bonds” under Subtitle 3 of this title.

A resolution authorizing the issuance of bonds under this subtitle shall determine and specify: 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. The Secretary shall provide notice of the new date and time of sale not less than 24 hours prior to the time proposals are to be submitted, which date may not be more than 30 days after the originally scheduled date of sale. The notice may be given by Munifacts News Service or a similar service or such other method as the Secretary deems appropriate. Bonds shall be executed by the manual or facsimile signature of the Secretary. Other signatures on the bonds may be either manual or facsimile. If an individual whose manual or facsimile signature appears on any bond or coupon ceases to serve in an authorized capacity before the delivery of the bond, the signature nevertheless is as valid and sufficient for all purposes as if the individual had remained in that capacity until delivery of the bond.

Notwithstanding any other provision of law or any recitals in the instruments, bonds issued under this subtitle are investment securities under the laws of this State.

Bonds issued under this subtitle and their issuance and sale are exempt from the provisions of §§ 8-206 and 8-208 of the State Finance and Procurement Article.

Before the preparation of definitive bonds, the Department may issue interim certificates or temporary bonds, with or without coupons, exchangeable for definitive bonds when the definitive bonds have been executed and are available for delivery.

The Department may issue bond anticipation notes under this subtitle, payable to the bearer or registered holder of the notes out of the first proceeds of the next sale of bonds. The resolution authorizing the issuance of bond anticipation notes may provide for the issuance of these notes in series, as funds are required, and for the renewal of these notes at maturity, with or without resale. The issuance of bond anticipation notes, the details of their issuance, the rights of their holders, and the rights, duties, and obligations of the Department with respect to them are governed by the provisions of this subtitle relating to the issuance of the bonds in anticipation of the sale of which the notes are issued, insofar as those provisions may be applicable.

Bonds issued under this subtitle, their transfer, the interest payable on them, and any income derived from them, including any profit realized in their sale or exchange, shall be exempt at all times from every kind and nature of taxation by this State or by any of its political subdivisions, municipal corporations, or public agencies of any kind.

Bonds under this subtitle may be authorized by trust agreement between the Department and a corporate trustee, which may be any trust company, or bank having trust powers, within or without the State. Any such trust agreement shall describe the source or sources of revenue to be pledged to pay debt service on the bonds and may contain: 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. A trust agreement may provide that the bonds may be sold either at public or private sale and that the maturity of the bonds may not exceed 30 years after their date of issue.

The Department may issue bonds under this subtitle: Without obtaining the consent of any instrumentality, agency, or unit of this State; and Without any proceedings or the happening of any conditions or things other than those specifically required by this subtitle.

The bonds shall be payable solely from the revenues received by the Department from the participating counties for that purpose. The revenues of the State and the Department are not pledged, and may not be used, to pay the principal of or interest on the bonds. The Transportation Trust Fund established by § 3-216 of this title is not pledged, and may not be used, to pay the principal of or interest on the bonds.

Bonds issued under this subtitle are not debt of the State or the Department. Bonds issued under this subtitle are not and may not be considered to constitute a debt or a pledge of the faith and credit of the State of Maryland or the Department. All bonds issued under this subtitle shall contain a statement on their face to the effect that: 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. Bonds issued under this subtitle are obligations of the participating counties.

Subject to § 3-515 of this subtitle, the Department may allow any county in this State to participate in an issue of bonds under this subtitle. On the date designated by the Department, a county that desires to participate shall notify the Department of: 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. The Department may extend the date for notification when appropriate.

After notification by the county, the Department shall determine the total amount of bonds that it should issue under this subtitle on behalf of participating counties, giving consideration to the amount of revenues from each county available 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.

Counties which can demonstrate an ability to pay their proportionate share of debt service on the bonds may participate in the program only after: 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. The obligations undertaken under this subtitle by participating counties, the borrowing which they represent, any pledge of the full faith and credit of the participating counties or any other guarantee of the participating counties, and the programs or projects being financed are subject to: 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.

Before it sells any bonds under this subtitle, the Department shall enter into an agreement with each participating county as required by this section. The agreement shall: 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. The Department may pledge or assign all or a portion of its rights under agreements made pursuant to this section to guarantee repayment of 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.

Counties may borrow the proceeds of bonds issued under this subtitle and enter into agreements with the Department evidencing the counties’ obligation to repay such loans, pursuant to such terms and conditions as the Department and the counties deem appropriate. A county may enter into any agreement necessary or appropriate to allow it to participate in a bond issue under this subtitle. An agreement authorized by this subsection may have such provisions, terms, and conditions, and may be of such duration, as the county by ordinance or resolution may determine. Except as provided in subsection (f) of this section, any payment obligation in an agreement authorized by this section may be either: 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. A payment obligation in an agreement authorized by this section may be undertaken by a county pursuant to a public or private sale, with or without public bidding. If a State constitutional provision limits a county in undertaking a payment obligation described in this section or requires a county to comply with certain procedures prior to undertaking a payment obligation described in this section, the county may provide that the payment obligation: 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. The obligations undertaken under this subtitle by participating counties, the borrowing which they represent, any pledge of the full faith and credit of the participating counties or any other guarantee of the participating counties, and the programs or projects being financed are not subject to any requirement of charter or local law as to the form or public sale of bonds or obligations of the counties.

The Department may from time to time issue revenue refunding bonds under this subtitle for: 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. This issuance of refunding bonds under this section, the details of their issuance, the rights of their holders, and the rights, duties, and obligations of the Department with respect to them are governed by the provisions of this subtitle relating to revenue bonds, insofar as those provisions may be applicable, except that the issuance of such refunding bonds and the obligations with respect to them are not subject to the provisions of § 3-516 of this subtitle.