Maryland Statutes
Subtitle 2 - Debt and Securities
Section 18-206 - Revenue Bonds

(a)    (1)    To accomplish the purposes under § 18–203(b) of this subtitle, the Commission may issue bonds to finance the cost of revenue–producing facilities in Montgomery County or Prince George’s County, including:
            (i)    the cost of acquiring or constructing a facility;
            (ii)    the cost of enlarging, improving, remodeling, or restoring an acquired facility;
            (iii)    the cost of surveys, studies, drawings, and architectural and engineering plans and specifications;
            (iv)    the cost of site assembly, including legal proceedings, title fees, and settlement charges;
            (v)    the cost of issuance of bonds under this section, including advertising and printing charges and legal fees;
            (vi)    the cost of interest on the bonds during construction of a facility and for 1 year after completion of the facility; and
            (vii)    the cost to the Commission of performance of any of the functions under this paragraph by Commission staff.
        (2)    The Commission may be reimbursed for performance of any of the functions under paragraph (1) of this subsection from the proceeds of the bonds issued to finance the facility with respect to which the services were performed.
        (3)    The bonds are payable as to principal and interest solely from revenues of the Commission from fees, rates, rents, or other charges received by the Commission for:
            (i)    the use of the facility; or
            (ii)    the use of a facility that is not financed by the borrowing.
        (4)    The Commission may secure any borrowing by a pledge of the revenues.
    (b)    (1)    The Commission may set and periodically amend fees, rates, rentals, or other charges for the use of the Commission’s facilities in Montgomery County or Prince George’s County:
            (i)    to provide revenue to pay debt service:
                1.    on bonds issued under this section to finance the cost of a facility either separately or together with other revenue–producing facilities of the Commission in either county; or
                2.    on bonds issued to finance the cost of other revenue–producing facilities of the Commission in either county; and
            (ii)    to pay the expenses of the Commission for the facility, including operating and maintenance expenses, unless the Commission authorizes the use of funds from another source for payment of other expenses.
        (2)    To sell and secure the bonds of the Commission authorized under this section, the Commission may enter into agreements to set the fees, rates, rentals, or other charges and the collection and application of the fees, rates, rentals, or other charges.
    (c)    (1)    The Commission may determine the form, terms and conditions, issuance, and sale and delivery of an obligation issued under this section, including:
            (i)    the interest rate or method of determining the interest rate of the obligation;
            (ii)    the maturity date of the obligation and any provisions for redemption prior to maturity;
            (iii)    the price at which the obligation is to be sold, which may be above or below par value; and
            (iv)    the security for the obligation.
        (2)    The Commission may sell the bonds by competitive or negotiated sale in a manner, for a price, and at rates the Commission determines to be in its best interests.
        (3)    Notwithstanding any other law or any recitals in any instruments creating the obligation, the obligations are negotiable instruments.
        (4)    The chair of the Commission shall execute the obligation on behalf of the Commission by manual or facsimile signature.
        (5)    The secretary–treasurer of the Commission shall attest to the execution of the obligation by manual or facsimile signature.
        (6)    The seal of the Commission shall be impressed or imprinted on the obligation.
        (7)    An officer’s signature or facsimile signature on an obligation remains valid even if the officer leaves office before the obligation is delivered.
    (d)    (1)    The Commission may enter into a trust agreement with, and designate as trustee under the trust agreement, a bank with trust powers, or a trust company, located in or outside the State to secure payment of the principal of and interest on an obligation issued under this section.
        (2)    The trust agreement may provide for:
            (i)    the deposit of the proceeds of the sale of the obligations secured by the trust agreement with the trustee; and
            (ii)    the application of the proceeds to pay the cost of the facility financed by the obligations.
        (3)    The Commission may enter into covenants and agreements in the trust agreement for:
            (i)    the setting of fees, charges, and rentals for the use and enjoyment of the facility;
            (ii)    the payment of gross or net revenues from the facility and other funds pledged under this section to the trustee;
            (iii)    the application of the payments by the trustee to the payment of the principal of and interest on the obligations secured by the trust agreement; and
            (iv)    the establishment and maintenance of reserves or a sinking fund.
        (4)    The trust agreement may contain a pledge of and constitute a lien on:
            (i)    the revenues and funds pledged by the Commission for the payment of obligations issued under this section; and
            (ii)    the proceeds of sale of the obligations, the investment of the proceeds, and the income or gain resulting from the investment of the proceeds.
        (5)    The trust agreement may create a security interest for the benefit of the holders of the obligations in the facility that is financed with the proceeds of the obligations, but not in any other facility the revenues from which are pledged by the Commission to the payment of debt service on the obligations.
        (6)    The trust agreement may provide for the protection of the holders of the obligations if the Commission fails to perform any of the covenants under the agreement, including the right of the trustee to sell any of the facilities at public or private sale and the application of the proceeds of the sale to the payment of the obligations secured by the agreement.
    (e)    (1)    The Commission may apply general funds not otherwise committed to the payment of the principal of and interest on bonds issued under this section, either on maturity or redemption.
        (2)    The Commission may retire an entire issue of the bonds issued under this subsection from the proceeds of general obligation refunding bonds issued under § 18–207 of this subtitle.
        (3)    The Commission may:
            (i)    continue to charge for the use or enjoyment of a facility on the retirement of an issue of bonds from:
                1.    the revenues of the facility financed by the bonds;
                2.    other funds of the Commission; or
                3.    refunding as authorized under § 18–207 of this subtitle; and
            (ii)    apply the revenues from the charge to any other function, objective, or purpose of the Commission.
    (f)    (1)    The Commission may adopt rules and regulations for the use and enjoyment by the general public of a facility financed under this subsection.
        (2)    The rules and regulations may not exclude a person that pays the required charge or fee for use and enjoyment of the facility because of creed, race, or gender of the person.
        (3)    A lease of a facility by the Commission shall contain enforceable covenants by the lessee to comply with this section.

Structure Maryland Statutes