Maryland Statutes
Subtitle 1 - Economic Development Revenue Bond Act
Section 12-113 - Payment of Bonds

(a)    (1)    A bond and the interest on a bond are limited obligations of the public body.
        (2)    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; or
            (ii)    other money made available to the public body.
        (3)    Bonds and the interest on them:
            (i)    are not debts or charges against the general credit or taxing powers of a 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 an issuing public body.
        (4)    A bond may state on its face that the bond:
            (i)    is issued under this subtitle; and
            (ii)    is not a debt to which the public body’s faith and credit is pledged.
    (b)    On default in the payment of the principal of or interest on a bond, a court with jurisdiction:
        (1)    may appoint a receiver or take other appropriate action to provide for the payment of the bond; and
        (2)    shall apply any available revenue as this subtitle or a resolution adopted under this subtitle provides.

Structure Maryland Statutes