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§ 19-205. Public and private sale

West's Annotated Code of MarylandLocal GovernmentEffective: October 1, 2013

West's Annotated Code of Maryland
Local Government (Refs & Annos)
Division IV. Local Finance [Titles 16-23] (Refs & Annos)
Title 19. Public Debt (Refs & Annos)
Subtitle 2. Public Securities (Refs & Annos)
Part II. Conditions on Sale of Public Securities (Refs & Annos)
Effective: October 1, 2013
MD Code, Local Government, § 19-205
Formerly cited as MD CODE, Art. 31, § 9; MD CODE, Art. 31, § 10
§ 19-205. Public and private sale
Currentness
Scope of section
(a)(1) Except as provided in paragraph (2) of this subsection, this section applies only to the following governmental entities:
(i) a county;
(ii) a public corporation or other political subdivision of the State; or
(iii) an instrumentality or agency of a county, public corporation, or other political subdivision of the State.
(2) This section does not apply to the following governmental entities:
(i) Baltimore City;
(ii) a municipality; or
(iii) a housing authority under Division II of the Housing and Community Development Article.
Application of section
(b)(1) This section does not apply if the total principal amount of the authorized issue is $25,000 or less.
(2) This section does not apply to a bond that:
(i) matures within 1 year after the date of issue and is issued:
1. in anticipation of taxes;
2. to meet current expenses; or
3. to meet an emergency;
(ii) is sold to the United States or a unit or instrumentality of the United States;
(iii) is issued under a plan of composition approved in a proceeding under Chapter IX of the United States Bankruptcy Act; or
(iv) is issued under any other plan to refund or refinance in exchange, bond for bond, for an outstanding maturing debt, other than:
1. a current or floating debt; or
2. a bond under item (i) of this paragraph.
(3) This section does not apply if:
(i) the proceeds of the sale of bonds are to be used with a grant from the United States or a unit or instrumentality of the United States to finance public works; and
(ii) in the opinion of the Attorney General, the agreement or other writing referring to the grant conditions the grant on the prior execution, by the governmental entity and a prospective buyer, of a contract for the sale of the bonds when issued.
(4) This section does not apply to bond or grant anticipation notes issued under Part III of this subtitle.
(5) This section does not apply to a bond issued under an enabling act that:
(i) states that this section does not apply; or
(ii) provides a different method for the sale of the bonds.
Public sale required
(c) A governmental entity shall offer bonds at a public sale.
Notice of public sale
(d)(1) A governmental entity shall give notice of a public sale of bonds at least twice in at least one newspaper of general circulation in the area in which the governmental entity is located.
(2) The first publication shall appear at least 10 days before the date of the sale.
(3) The notice shall:
(i) be in the form required in the ordinance or resolution that authorizes the issuance of the bonds;
(ii) state the date, time, and place of the public sale;
(iii) reference the enabling act that authorized the bonds;
(iv) state the date of issue;
(v) state the total principal amount;
(vi) state the schedule of maturities;
(vii) state the interest payable or the manner of determining the interest;
(viii) state the purpose for which the proceeds will be used;
(ix) describe the general form of the bonds, including whether the bonds will be:
1. in coupon or registered form; and
2. registrable as to principal or interest or both;
(x) state that each bid must be made in writing by sealed proposal; and
(xi) state the amount of the good faith deposit that the governmental entity has determined must accompany the bid.
(4) The notice may reserve to the governmental entity the right to reject any or all bids.
Award
(e) Except as provided in subsection (f) of this section, the governmental entity shall sell the bonds to the highest bidder or bidders at the public sale.
Sale after rejection of all bids
(f)(1) If the governmental entity has reserved the right to reject bids and does reject all bids, the governmental entity, within 30 days after rejecting all the bids, may sell the bonds at a private sale for not less than the highest amount bid by an acceptable bidder at the public sale.
(2) If the governmental entity fails to sell the bonds at a private sale within the 30-day period under paragraph (1) of this subsection, the governmental entity may sell the bonds only at another public sale after notice as required in subsection (d) of this section.

Credits

Added by Acts 2013, c. 119, § 2, eff. Oct. 1, 2013.
MD Code, Local Government, § 19-205, MD LOCAL GOVT § 19-205
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document