2013 Maryland Code
STATE FINANCE AND PROCUREMENT
§ 8-206 - Public and private sales of bonds

§8-206.

(a) (1) This section does not apply if the total principal amount of the authorized issue is $25,000 or less.

(2) This section does not apply to a bond that:

(i) matures within 1 year after the date of issue and is issued:

1. in anticipation of tax receipts;

2. to meet current expenses; or

3. to meet an emergency;

(ii) is sold to the United States or a unit or instrumentality of the United States;

(iii) is issued under a plan of composition approved in a proceeding under Chapter IX of the United States Bankruptcy Act; or

(iv) is issued under any other plan to refund or refinance in exchange, bond for bond, an outstanding maturing debt, other than:

1. a current or floating debt; or

2. a bond under item (i) of this paragraph.

(3) This section does not apply if:

(i) the proceeds of the sale of bonds are to be used with a grant from the United States or a unit or instrumentality of the United States to finance public works; and

(ii) in the opinion of the Attorney General, the agreement or other writing referring to the grant conditions the grant on the prior execution, by the State unit and a prospective buyer, of a contract for the sale of the bonds when issued.

(4) This section does not apply to bond or grant anticipation notes issued under Part III of this subtitle.

(5) This section does not apply to bonds issued under an enabling act that specifically states that this section does not apply or that provides a different method for the sale of the bonds.

(b) A State unit shall offer bonds at a public sale.

(c) (1) A State unit shall give notice of a public sale of bonds at least twice in at least 1 newspaper with a general circulation in the State. The 1st publication shall appear at least 10 days before the date of sale.

(2) The notice shall:

(i) be in the form required in the resolution that authorizes the issuance of the bonds;

(ii) state the date, time, and place of the public sale;

(iii) describe the bonds by reference to the enabling act under which they are authorized;

(iv) state the date of issue;

(v) state the total principal amount;

(vi) state the schedule of maturities;

(vii) state the interest payable or the manner of determining the interest;

(viii) state the purpose for which the proceeds will be used;

(ix) describe the general form of the bonds, including:

1. whether the bonds will be in coupon or registered form; and

2. whether the principal or interest or both will be registrable;

(x) state that each bid must be made in writing by sealed proposal; and

(xi) state the amount of the good faith deposit that the State unit has determined must accompany the bid.

(3) The notice may reserve to the State unit the right to reject any or all bids.

(d) Except as provided in subsection (e) of this section and § 8-207 of this subtitle, the State unit shall sell the bonds to the highest bidder or bidders at the public sale.

(e) (1) If the State unit has reserved the right to reject bids and does reject all bids, the State unit, within 30 days after rejecting all the bids, may sell the bonds at a private sale for not less than the highest amount bid by an acceptable bidder at the public sale.

(2) If the State unit has reserved the right to reject all bids and does reject all bids and fails to sell the bonds at a private sale within the 30-day period under paragraph (1) of this subsection, the State unit may sell the bonds only at another public sale after notice as required in subsection (c) of this section.