2013 Maryland Code
NATURAL RESOURCES
§ 3-915 - Bonds not pledge of full faith and credit and taxing power; contracts between subdivision and Authority [Effective until October 1, 2013].

§3-915.

The bonds shall not be deemed to constitute a debt, liability or a pledge of the faith and credit of the State of Maryland or of any political subdivision thereof other than the Authority, but such bonds shall be payable solely from the funds herein provided therefor. All such bonds shall contain on the face thereof a statement to the effect that neither the State of Maryland nor any political subdivision thereof other than the Authority shall be obligated to pay the same or the interest thereon except from revenues pledged thereto and that neither the faith and credit nor the taxing power of the State or any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds. The issuance of bonds under the provisions of this subtitle is not directly or indirectly or contingently an obligation, moral or other, of the State of Maryland or any political subdivision thereof to levy or pledge any form of taxation whatever therefor or to make any appropriation for their payment. Nothing contained in this section shall prevent the Authority from pledging its full faith and credit to the payment of bonds authorized pursuant to this subtitle. However, this section does not limit the ability of the State or a subdivision to set, impose, or collect an assessment, rate, fee, or charge to pay to the Authority the cost of a project, including the principal of and interest on a bond or note, under an agreement between the Authority and the State or subdivision.

Notwithstanding any limitations or other provisions to the contrary of Article 23A, 25A, or 25B of the Code, or of any charter or local law regulating the creation of public debts, a subdivision may enter into contracts with the Authority for the purpose of defraying the Authority’s costs of acquiring, constructing, operating, or providing a project, which costs may include debt service requirements of the Authority relating to that project. These contracts are not intended and shall not be deemed to constitute or create a debt of the subdivision or a pledge of its faith or credit within the meaning of any of these limitations or any constitutional or other provisions. Such a project shall not be deemed to be a capital project of the subdivision within the meaning of any of these limitations or other provisions, and a resolution, ordinance, or other official action authorizing such contracts is not subject to referendum or other procedure not applicable to all ordinances or resolutions enacted by the subdivision. For the purposes of this section, the express powers contained and enumerated in Articles 23A, 25A, and 25B of the Code and in the charter of the City of Baltimore are deemed to incorporate and include the power and authority contained in this section.

§ 3-915 - Bonds not pledge of full faith and credit and taxing power; contracts between subdivision and Authority [Effective October 1, 2013].

The bonds shall not be deemed to constitute a debt, liability or a pledge of the faith and credit of the State of Maryland or of any political subdivision thereof other than the Authority, but such bonds shall be payable solely from the funds herein provided therefor. All such bonds shall contain on the face thereof a statement to the effect that neither the State of Maryland nor any political subdivision thereof other than the Authority shall be obligated to pay the same or the interest thereon except from revenues pledged thereto and that neither the faith and credit nor the taxing power of the State or any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds. The issuance of bonds under the provisions of this subtitle is not directly or indirectly or contingently an obligation, moral or other, of the State of Maryland or any political subdivision thereof to levy or pledge any form of taxation whatever therefor or to make any appropriation for their payment. Nothing contained in this section shall prevent the Authority from pledging its full faith and credit to the payment of bonds authorized pursuant to this subtitle. However, this section does not limit the ability of the State or a subdivision to set, impose, or collect an assessment, rate, fee, or charge to pay to the Authority the cost of a project, including the principal of and interest on a bond or note, under an agreement between the Authority and the State or subdivision.

Notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article, or of any charter or local law regulating the creation of public debts, a subdivision may enter into contracts with the Authority for the purpose of defraying the Authority's costs of acquiring, constructing, operating, or providing a project, which costs may include debt service requirements of the Authority relating to that project. These contracts are not intended and shall not be deemed to constitute or create a debt of the subdivision or a pledge of its faith or credit within the meaning of any of these limitations or any constitutional or other provisions. Such a project shall not be deemed to be a capital project of the subdivision within the meaning of any of these limitations or other provisions, and a resolution, ordinance, or other official action authorizing such contracts is not subject to referendum or other procedure not applicable to all ordinances or resolutions enacted by the subdivision. For the purposes of this section, the express powers contained and enumerated in Division II and Title 10 of the Local Government Article and in the charter of the City of Baltimore are deemed to incorporate and include the power and authority contained in this section.