§ 19-509. Liability for bonds; imposition of taxes; limits on debt
West's Annotated Code of MarylandLocal GovernmentEffective: October 1, 2013
Effective: October 1, 2013
MD Code, Local Government, § 19-509
Formerly cited as MD CODE, Art. 25B, § 19; MD CODE, Art. 25B, § 20
§ 19-509. Liability for bonds; imposition of taxes; limits on debt
(a) Except as provided in subsection (b) of this section, each bond issued in accordance with this subtitle is a pledge of the full faith and credit of the county to the prompt payment, from the revenues described in the public local law authorizing the bond, of the principal of and interest on the bond when due.
(b) A revenue bond issued in accordance with this subtitle is not a debt of the county to which its faith and credit or taxing power is pledged.
(c)(1) If at the time bonds are issued there is no statutory limit on the power of the county to impose property taxes, the pledge under subsection (a) of this section is a covenant by the county to impose ad valorem taxes:
(2) If at the time bonds are issued there is a statutory limit on the power of the county to impose property taxes, the pledge under subsection (a) of this section is a covenant by the county to impose the ad valorem taxes described in paragraph (1) of this subsection within the limits imposed by law.
(d) A statute that establishes a maximum limit on the rate at which a county may impose property taxes, or that removes an existing limit, enacted after bonds are issued by the county does not affect the covenants of the county under subsection (c) of this section with respect to bonds outstanding on the effective date of the statute.
(e)(1) A county may not issue a bond under this subtitle if, by its issuance, a statutory maximum limit imposed by statute on the power of the county to incur debt will be exceeded.
(f)(1) In addition to the pledge of its full faith and credit and taxing power to pay the principal of and interest on bonds, a county may secure the payment by the pledge of any other revenues, including:
(3) If the additional revenues are sufficient in any year to pay the principal of and interest on the bonds to which they are pledged, the failure of the county to impose property taxes pledged to pay the bonds in that year is not a breach of any payment of the principal of and interest on the bonds.
Credits
Added by Acts 2013, c. 119, § 2, eff. Oct. 1, 2013.
MD Code, Local Government, § 19-509, MD LOCAL GOVT § 19-509
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.
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