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§ 21-702. Authorization to issue bonds

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 21. Special Taxing Districts (Refs & Annos)
Subtitle 7. Districts for Transportation Improvements (Refs & Annos)
Effective: October 1, 2013
MD Code, Local Government, § 21-702
Formerly cited as MD CODE, Art. 24, § 9-1303
§ 21-702. Authorization to issue bonds
Currentness
Definitions
(a)(1) In this section the following words have the meanings indicated.
(2) “Bond” means a special obligation bond, note, or other similar instrument issued by a county under this section.
(3) “Cost” means any expense necessary or incident to acquiring, building, or financing any transportation improvement as may be provided by the local law authorized under subsection (b) of this section.
(4)(i) “Special tax” means an ad valorem or a special tax, an assessment, a fee, or a charge imposed by a county in a special taxing district.
(ii) “Special tax” does not include an ad valorem or a special tax, an assessment, a fee, or a charge imposed under Chapter 20A of the Montgomery County Code.
(5)(i) “Special taxing district” means a special taxing district, special assessment district, or similar defined geographical area in a county in which the county is authorized to impose a special tax.
(ii) “Special taxing district” does not include a development district created under Chapter 20A of the Montgomery County Code.
(6) “Transportation improvement” means a State transportation improvement or a county transportation improvement as defined in § 21-701 of this subtitle.
In general
(b) Notwithstanding any other public general law, public local law, or charter of a charter county, a county may enact a law to provide for the issuance of bonds to finance the cost of transportation improvements for which the principal, interest, and any premium shall be paid from and secured by special taxes collected by the county in a special taxing district.
Terms and conditions of bonds
(c)(1) Bonds issued under this section are special obligations of the county and do not constitute a general obligation debt of the county or a pledge of the county's full faith and credit or general taxing power.
(2) Bonds issued under this section may be sold in any manner, either at public or private sale, and on terms as the county considers best.
(3) Bonds issued under this section are not subject to §§ 19-205 and 19-206 of this article.
(4) Bonds issued under this section, their transfer, the interest payable on them, and any income derived from them, including any profit realized on their sale or exchange, are exempt from taxation by the State, a county, or a municipality.
(5) Bonds issued under this section shall be treated as securities to the same extent as bonds issued under Subtitle 5 of this title.
Additional security
(d) In addition to the special taxes, bonds issued under this section may be secured by other revenues generated in the special taxing district.
Construction of section
(e) This section, being necessary for the welfare of the State and its residents, shall be liberally construed to effect its purposes.

Credits

Added by Acts 2013, c. 119, § 2, eff. Oct. 1, 2013.
MD Code, Local Government, § 21-702, MD LOCAL GOVT § 21-702
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