2013 Maryland Code
§ 18-207 - Refunding bonds.
(a) If any bonds are issued under this title subject to redemption or repurchase, the Commission may:
(1) redeem or repurchase the bonds at the stated redemption prices plus accrued interest; and
(2) issue and sell refunding bonds as provided under this section to provide funds for the redemption or repurchase.
(b) (1) The refunding bonds may be:
(i) issued in amounts sufficient to accomplish the redemption or repurchase and in units corresponding to the bonds to be repurchased or refunded; or
(ii) issued in an amount sufficient to provide for the refunding or repurchase of several issues of bonds.
(2) Bonds initially issued on account of lands purchased in Montgomery County or Prince George’s County may not be refunded or repurchased through the flotation of a single issue of refunding bonds.
(c) (1) The refunding bonds may be identified as refunding bonds or designated in any other appropriate fashion.
(2) The Commission may determine:
(i) the terms and conditions of the bonds; and
(ii) the manner, method, and place of sale of the bonds.
(3) The maturity date of an issue of bonds may not exceed 60 years from the earliest of the respective dates of issue of the corresponding series of bonds or notes in substitution for which any issue of bonds is issued.
(d) The Commission may:
(1) sell the bonds, at not less than par value, by competitive or negotiated sale in a manner, for a price, and at rates the Commission determines to be in its best interests;
(2) issue the bonds in serial maturity form or with a single fixed date of maturity;
(3) make the bonds redeemable wholly or partly by lot or otherwise after a certain period or date;
(4) issue the bonds subject to registration as to principal and interest or as to principal only;
(5) establish and maintain a sinking fund for the payment of the maturing principal and interest of the bonds;
(6) set the interest rate payable on the bonds at the rate the Commission determines to be advantageous and in the public interest or otherwise establish the manner of determining the interest rate; and
(7) generally determine all of the provisions of the bonds.
(e) (1) Montgomery County and Prince George’s County shall guarantee the payment of principal of and interest on the bonds issued under this subsection by endorsement as provided under § 18-204 of this subtitle.
(2) The bonds shall be issued on the full faith and credit of the county guaranteeing them.
(3) The principal of and interest on the bonds shall be paid from the proceeds of the collection of the taxes authorized to provide funds for servicing the bonds in substitution for which the bonds are issued.
(4) The funds needed for principal and interest payments of the bonds authorized may not be preferred in the division of tax proceeds over the funds needed for principal and interest payment or any other issue of bonds payable.
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