Maryland Maryland-National Capital Park and Planning Commission Section 6-101
§ 6-101.
(a) For the purpose of paying for lands or other property within the district acquired or to be acquired by the Commission, whether by condemnation or purchase, for parks, parkways, forests, streets, roads, highways, boulevards, and other public ways, grounds, and spaces, and for the purposes of public recreation, or for the development or improvement thereof, the Commission may issue and sell serial bonds, notes, and other obligations, which need not be serial, ("bonds") from time to time in amounts it deems necessary for these purposes and under rules and regulations the Commission determines.
(b) The total amount of bonds outstanding at any time may not exceed an amount that can be redeemed within 30 years from date of issue by means of so much of the tax or taxes hereinafter authorized as is pledged to the payment of the bonds, to the extent that the taxes are or are proposed to be levied in Montgomery County or Prince George's County, or both. In making the calculation to determine compliance with the limitation contained in this subsection, the Commission may make the following assumption: (i) continued future levy of the tax or taxes at the rate established by each county; (ii) 100 percent collection of the tax in each fiscal year; (iii) the assessed value of property at the time the bonds are issued will remain constant.
(c) Bonds shall be either registered or coupon bonds in a denomination or denominations as determined by the Commission, shall bear interest annually at a rate the Commission determines to be advantageous and otherwise in the public interest, payable semiannually or at such other times as the Commission may determine, and shall mature in not exceeding 50 years from the date of issue, and shall be issued under the hand and seal of the Commission, by manual or facsimile signature. Notwithstanding the provisions of any other law, the Commission may sell bonds at public sale or, if the Commission by resolution determines that a more advantageous price may be obtained by private negotiation, and may provide in the issue of bonds for their redemption prior to their stated maturity, in whole or in part at the option of the Commission, at redemption prices which may be in excess of the par value of the bonds.
(d) (1) Bonds shall be issued upon the full faith and credit of the Commission and of the county or counties guaranteeing them as hereinafter provided.
(2) In the event that the Commission resolves to expend the proceeds of any issue of bonds throughout the metropolitan district, the bonds shall be guaranteed to the payment of principal and interest by Prince George's County and by Montgomery County. The guarantee shall be endorsed on each of the bonds in the following language: "The payment of interest when due and of the principal on maturity is guaranteed by Montgomery and Prince George's Counties, Maryland". This endorsement shall be signed by manual or facsimile signature on each of the bonds by the county executives of Montgomery and Prince George's Counties. In the event of any liability under the above guarantee, the liability for each county shall be in the proportion the assessable basis for that part of the county within the metropolitan district bears to the assessable basis of the whole of the district.
(3) If the proceeds of any issue of bonds are to be expended only in or for the benefit of that portion of the metropolitan district that is in Montgomery County, the bonds shall be guaranteed as to the payment of principal and interest by Montgomery County. The guarantee shall be endorsed on each of the bonds in the following language: "The payment of interest when due and of the principal on maturity is guaranteed by Montgomery County, Maryland". The endorsement shall be signed on each bond by the County Executive of Montgomery County.
(4) If the proceeds of any issue of bonds are to be expended only throughout that portion of the metropolitan district within Prince George's County, the bonds shall be guaranteed as to the payment of principal and interest by the County Executive of Prince George's County in the same form and manner as is above provided for Montgomery County.
(e) If the proceeds of any issue of bonds are to be expended throughout the metropolitan district, such proceeds shall be expended in that portion of each county within such district in such proportion as the assessable basis of that portion of either county bears to the assessable basis of the whole of such district. However, the Commission may issue such bonds for carrying out its corporate purposes in that portion of such district within either county. The proceeds of the sale of bonds to be expended within or for the benefit of that portion of the district within Montgomery County shall be expended only upon the recommendation of the members of the Commission from Montgomery County. In like manner, the proceeds of the sale of bonds issued to be expended within that portion of the district within Prince George's County shall be expended only upon the recommendation of the members of the Commission from Prince George's County.
(f) (1) In order to carry out any of its purposes set forth in subsection (a) of this section, the Commission is hereby authorized to borrow money to finance the cost of revenue producing facilities in Montgomery County or Prince George's County and to evidence such borrowing by issuing its bonds (which term includes notes or other obligations pursuant to subsection (a) of this section), payable as to principal and interest solely from revenues of the Commission available for such purpose from fees, rates, rents, or other charges received by the Commission for the use of any such facilities, including such revenues from facilities other than the facility or facilities being financed by any such borrowing (the "revenues"), and to secure any such borrowing by a pledge of the revenues.
(2) As used in this subsection, "cost" includes the actual cost of constructing or acquiring a facility, the cost of improving, restoring, remodeling, or enlarging any facility so acquired, the cost of surveys, studies, drawings, architectural and engineering plans and specifications, the cost of site assembly, including legal proceedings, title fees and settlement charges, the cost of issuance of bonds under this subsection, including advertising and printing charges and legal fees, the cost of interest on any such bonds during construction of any facility and for a period of 1 year after completion thereof, including the actual cost to the Commission of performance of any of the foregoing functions by its own staff, which cost may be reimbursed to the Commission from the proceeds of such bonds issued to finance the facilities with respect to which such services have been performed.
(3) The Commission may fix and, from time to time, alter or amend fees, rates, rentals, or other charges for the use of any facility of the Commission in Montgomery County or Prince George's County in order (i) to provide revenues to meet debt service on its bonds issued under this subsection to finance the cost of any such facility either separately or together with other revenue producing facilities of the Commission in Montgomery County or Prince George's County or to meet debt service on such bonds issued to finance the cost of other revenue producing facilities of the Commission in Montgomery County or Prince George's County, and (ii) to provide for the payment of all expenses of the Commission with respect to such facility or facilities, such as, without limitation, operating and maintenance expenses, unless the Commission authorizes the use of funds derived from a source other than such facility or facilities available to it for payment of such other expenses. The Commission may enter into such covenants with respect to the fixing of any such fees, rates, rentals or other charges and the collection and application thereof as it may deem requisite in order to market any of its bonds to be issued under this subsection.
(4) The Commission may determine any and all matters relating to the form, terms and conditions, issuance, sale and delivery of any obligations issued under this subsection, including, without limitation, the interest rate or rates to be borne by such obligations, or the method of determining such rate or rates, the maturity date or dates thereof, any provisions for redemption prior to maturity, the price or prices at which such obligations are to be sold, which may be above or below the parvalue thereof, and the security for such obligations. Such obligations may be sold at public or at private sale, as the Commission may determine. Such obligations are negotiable instruments under Maryland law, notwithstanding any other provisions of the Code or any recitals in any instruments creating any such obligation. Such obligations shall be executed on behalf of the Commission by the manual or facsimile signature of its chairman and shall be attested by its secretary-treasurer, and the seal of the Commission shall be impressed or imprinted thereon. Such obligations shall be valid notwithstanding the fact that any officer of the Commission signing the same shall cease to be such officer prior to the delivery of such obligations.
(5) For the purpose of securing the payment of the principal of and interest on any obligations issued under this subsection, the Commission may enter into a trust agreement with any bank having trust powers, or with a trust company, located within or outside the State of Maryland and designated as trustee under such trust agreement. Any such trust agreement may provide for the deposit with the trustee of the proceeds of sale of the obligations secured thereby and the application of the proceeds to payment of the cost of the facility or facilities financed by such obligations. The Commission may enter into appropriate covenants in the trust agreement concerning the fixing of fees, charges and rentals for the use and enjoyment of any facility, the payment of gross or net revenues from such facility and other funds pledged as authorized by this subsection to the trustee, the application of such payments by the trustee to the payment of the principal of and interest on the obligations secured by the trust agreement, and the establishment and maintenance of reserves or a sinking fund therefor. Any such trust agreement may contain a pledge of, and constitute a lien on, the revenues and funds pledged by the Commission for the payment of obligations issued under this subsection, including, without limitations, a pledge of and a lien on the proceeds of sale of any such obligations, any investments of such proceeds, and any income or gain resulting from any investment of such proceeds, and may create a security interest for the benefit of the holders of such obligations in the facility or facilities the cost of which is being financed with the proceeds of such obligations, but not in any other facility the revenues from which are pledged by the Commission to the payment of debt service on such obligations. Any such trust agreement may contain appropriate provisions for the protection of the holders of such obligations in the event of a default by the Commission in the performance of any of its covenants thereunder, including the right of the trustee to sell any of the facilities at public or private sale and the application of the proceeds of sale to the liquidation of the obligations secured thereby.
(6) The principal of and interest on any bonds issued under this subsection shall be exempt from taxation in the State of Maryland as provided in § 6-103 of this article.
(7) These provisions may not be construed to prevent the Commission from voluntarily applying to the payment of the principal of and interest on any bonds issued under this subsection, either upon maturity or redemption, its general funds not otherwise committed. This authority shall be deemed to include the power to retire an entire issue of such bonds from the proceeds of general obligation refunding bonds issued by the Commission pursuant to the authority of § 6-104 of this article. Upon the retirement of an issue of bonds from the revenues of this facility or facilities financed thereby, from other funds of the Commission, or by refunding as herein authorized, the Commission may elect to continue to charge for the use or enjoyment of any such facility, and may apply the revenues so derived to any other function, purpose or objective of the Commission.
(8) The Commission may adopt and, from time to time, amend, reasonable rules and regulations for the use and enjoyment by the general public of any facility financed under this subsection. These rules and regulations may not be so drawn as to exclude any persons tendering the required fee or charge for such use and enjoyment because of race, creed or sex of such person. Any lease of any such facility by the Commission shall contain appropriate and enforceable covenants by the lessee to comply with this limitation.
(g) None of the provisions of Article 31, §§ 10 and 11 of the Code are applicable to or have any bearing upon the manner and method of sale of bonds authorized by this title.
