Section 3-518 - Borrowing of proceeds; agreements to participate in bond issue; payment obligations.
§ 3-518. Borrowing of proceeds; agreements to participate in bond issue; payment obligations.
(a) Borrowing of proceeds authorized.- Counties may borrow the proceeds of bonds issued under this subtitle and enter into agreements with the Department evidencing the counties' obligation to repay such loans, pursuant to such terms and conditions as the Department and the counties deem appropriate.
(b) Agreements to allow counties to participate in bond issue authorized.- A county may enter into any agreement necessary or appropriate to allow it to participate in a bond issue under this subtitle.
(c) Provisions, terms, and conditions of agreements.- An agreement authorized by this subsection may have such provisions, terms, and conditions, and may be of such duration, as the county by ordinance or resolution may determine.
(d) Payment obligation - Authorized.- Except as provided in subsection (f) of this section, any payment obligation in an agreement authorized by this section may be either:
(1) A general obligation of the county to which its full faith and credit and unlimited taxing power is pledged and which may not be subject to annual appropriation by the county; or
(2) Any other obligation which the county is authorized to undertake.
(e) Payment obligation - Public or private sale permitted.- A payment obligation in an agreement authorized by this section may be undertaken by a county pursuant to a public or private sale, with or without public bidding.
(f) Payment obligation - Limitation by State constitutional provision.- If a State constitutional provision limits a county in undertaking a payment obligation described in this section or requires a county to comply with certain procedures prior to undertaking a payment obligation described in this section, the county may provide that the payment obligation:
(1) Is a limited obligation of the county repayable from assets and revenues as provided in the agreement; or
(2) Is subject to annual appropriation by the county.
(g) Effect of charter or local law.- The obligations undertaken under this subtitle by participating counties, the borrowing which they represent, any pledge of the full faith and credit of the participating counties or any other guarantee of the participating counties, and the programs or projects being financed are not subject to any requirement of charter or local law as to the form or public sale of bonds or obligations of the counties.
[1993, ch. 539; 2008, ch. 36, § 6.]