Section 4-1608 - Sale and payment of bonds.
§ 4-1608. Sale and payment of bonds.
(a) Manner of sale.-
(1) The bonds shall be sold at public or private sale on the terms that the legislative body of the covered county sets.
(2) The bonds are not subject to Article 31, §§ 9, 10, and 11 of the Code.
(b) Payment.-
(1) The bonds and the interest on them shall be limited obligations of the covered county.
(2) The principal and interest on the bonds shall be payable only from:
(i) the revenue derived from:
1. interest;
2. mortgage insurance;
3. casualty or special hazard insurance or other insurance proceeds; or
4. condemnation proceeds;
(ii) other revenue derived from mortgage loans or property securing the loans; or
(iii) other payments or revenues derived from or relating to the making of the loans.
(3) The bonds or coupons issued under this subtitle:
(i) are not an indebtedness or a charge against the general credit or taxing powers of the issuing county within the meaning of a constitution, county code provision, or statutory limit; and
(ii) are not and do not give rise to a monetary liability of the issuing county.
(4) On the advice of counsel, the face of each bond may plainly state that the bond was issued under this subtitle and is not an indebtedness to which the faith and credit of the county is pledged.
(c) Application of money received.- Money received from bonds issued under this subtitle shall be applied solely:
(1) to make money available through mortgage lending institutions only for residential mortgage loans to families of low or moderate income;
(2) to establish reserves;
(3) to pay the necessary expenses of financing; or
(4) to advance the payment of interest on the bonds during the first 3 years after the date of the bonds.
[An. Code 1957, art. 83B, § 2-407(c)-(e); 2005, ch. 26, § 2.]