2013 Maryland Code
ECONOMIC DEVELOPMENT
§ 5-436 - Bonds

§5-436.

(a) The Authority may issue and sell bonds in accordance with Title 12, Subtitle 1 of this article (Maryland Economic Development Revenue Bond Act) and this subtitle to accomplish the purposes of this subtitle.

(b) (1) The Authority may issue its bonds without the consent of any other unit of State government, any proceedings, or the occurrence of any conditions, other than those expressly required by this subtitle.

(2) (i) Before the Authority issues bonds, the Authority shall notify the Board of Public Works of its intention to issue the bonds up to a stated amount.

(ii) The Board of Public Works may coordinate the issuance of the bonds with any issuance of bonds of the State or its units or instrumentalities.

(3) The failure of the Authority to notify the Board of Public Works under paragraph (2)(i) of this subsection does not affect the validity or enforceability of bonds, findings or determinations, or agreements of the Authority.

(c) (1) When the Authority issues bonds, it is in the public interest that the Authority try to achieve a goal that 10% of the facility users are minority business enterprises as defined in § 14-301 of the State Finance and Procurement Article.

(2) The failure of the Authority to achieve the goal set out under paragraph (1) of this subsection does not affect in any way the validity or enforceability of bonds, findings or determinations, or agreements of the Authority.

(d) (1) This subsection does not apply to insurance that the Authority provides.

(2) A bond the Authority issues and the interest on the bond are limited obligations of the Authority.

(3) Except for bond anticipation notes and notes in the nature of commercial paper, the principal of, premium, and interest on a bond are payable solely from:

(i) money from the financing of a facility; and

(ii) other money made available to the Authority.

(4) Bonds and the interest on them:

(i) are not debts or charges against the general credit or taxing powers of the State, the Department, the Authority, or any other public body within the meaning of any constitutional or charter provision or statutory limitation; and

(ii) may not give rise to any pecuniary liability of the State, the Department, the Authority, or any other public body.

(5) A bond may state on its face that the bond:

(i) is issued under Title 12, Subtitle 1 of this article (Maryland Economic Development Revenue Bond Act) and this subtitle; and

(ii) is not a debt to which the faith and credit of the State, the Department, the Authority, or any other public body is pledged.

(e) Bonds that the Authority issues are exempt from State and local taxes as provided in § 12-116 of this article.

(f) Facilities financed with the proceeds of bonds that the Authority issues are not subject to the requirements of any law regarding competitive bidding.