(a) (1) The principal of and interest on bond anticipation notes under this part shall be payable from:
(i) the first proceeds of sale of the bonds; or
(ii) the tax or other revenue that the governmental entity has pledged to the payment of the bonds.
(2) One year’s interest on the notes, or on any renewal of the notes, accounting from the date of the initial issue of the notes, may be paid from the proceeds of sale of the notes.
(b) (1) Subject to paragraphs (2) and (3) of this subsection, the principal of and interest on grant anticipation notes under this part shall be payable from the proceeds of the grant.
(2) The governmental entity may make the grant anticipation notes payable only from the proceeds of the grant and need not pledge the faith and credit or taxing power of the governmental entity.
(3) If the governmental entity does not pledge its faith and credit or taxing power, the grant anticipation notes are not a debt or charge against the general credit or taxing power of the governmental entity under any constitutional provision, charter provision, or statutory limitation.
Structure Maryland Statutes
Subtitle 2 - Public Securities
Part III - Bond and Grant Anticipation Notes
Section 19-211 - Scope of Part
Section 19-212 - Authority to Issue
Section 19-213 - Ordinance or Resolution
Section 19-214 - Amount of Notes
Section 19-215 - Written Commitment
Section 19-216 - Signing of Notes
Section 19-217 - Payment of Principal and Interest
Section 19-218 - Proceeds of Sale of Bond Anticipation Notes
Section 19-219 - Interest Rate Limit on Bonds