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§ 19-206. Maturity of bond issue

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, § 19-206
Formerly cited as MD CODE, Art. 31, § 9; MD CODE, Art. 31, § 11; MD CODE, Art. 31, § 12
§ 19-206. Maturity of bond issue
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 agency or instrumentality 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 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.
(2) This section does not apply to bond or grant anticipation notes issued under Part III of this subtitle.
(3) 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 establishing the maturity of the bond.
Serial maturity required
(c)(1) A governmental entity shall issue bonds on a serial maturity plan.
(2) The governmental entity may:
(i) vary the amounts of the series; and
(ii) provide for the maturity of a series in consecutive annual installments or at longer intervals.
Maximum maturity
(d)(1) The maturity date of the final series shall be based on the purpose for which the bonds are issued:
(i) within the time limit that applies under the schedule in paragraph (2) of this subsection; or
(ii) if more than one time limit applies, within the shortest applicable time limit.
(2) The schedule of maturity dates is as follows:
Purpose of Issue
Limit on Maturity of Issue
Paving existing highways or streets
 
 
10 years
Airports and buildings constructed or to be constructed thereon
 
 
15 years
Highway construction
 
 
20 years
Electric light and power systems
 
 
25 years
Gas systems
 
 
25 years
Grade crossing eliminations
 
 
25 years
Harbor improvements
 
 
25 years
School construction
 
 
25 years
All other permanent structures of
durable materials
 
 
25 years
Bridges
 
 
30 years
Land acquired for permanent
improvements
 
 
40 years
Sewerage installation
 
 
40 years
Water systems
 
 
40 years

Credits

Added by Acts 2013, c. 119, § 2, eff. Oct. 1, 2013.
MD Code, Local Government, § 19-206, MD LOCAL GOVT § 19-206
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