(a) Each issuance of a local obligation under § 4-230 of this subtitle shall be secured by, at the discretion of the Administration, a pledge of the faith and credit of the issuer or a pledge of specific revenue of the issuer or the facility being financed as designated and described in the authorizing ordinance or resolution.
(b) If a local obligation is secured by a pledge of the faith and credit of the issuer to make prompt payment from the tax and other revenues described in the enabling resolution or ordinance:
(1) the pledge is a covenant to levy taxes sufficient to pay the principal of and interest on the local obligation when due:
(i) on all real and tangible personal property that is within the issuer’s corporate limits and subject to assessment for unlimited ad valorem taxation; and
(ii) in each year in which the local obligation is outstanding;
(2) if at the time of issuance of a local obligation there is a charter or statutory limit on the power of the issuer to levy property taxes, the pledge is a covenant to levy ad valorem taxes, within that limit, sufficient to pay the principal of and interest on the local obligation:
(i) on all real and tangible personal property that is within the issuer’s corporate limits and subject to assessment for ad valorem taxation; and
(ii) in each year in which the local obligation is outstanding;
(3) a local obligation may not be issued if the issuance would cause the issuer to exceed any limit set by the charter of the issuer or by statute on the power of the issuer to incur indebtedness; and
(4) notwithstanding item (3) of this subsection:
(i) a limit on the power to incur indebtedness imposed after the issuance of a local obligation does not affect that obligation; and
(ii) outstanding local obligations of an issuer are not affected by the issuance of a new local obligation if the new obligation is consistent with an increase in or the elimination of a limit on the power to incur indebtedness.
(c) (1) An issuer of a local obligation under § 4-230 of this subtitle may secure payment by the pledge of specific revenues of the issuer.
(2) If a local obligation issued under § 4-230 of this subtitle is secured by the pledge of specific revenue, the specific revenue may include:
(i) payments to the issuer from the State or federal government;
(ii) special benefit assessments, taxes, fees, or service charges that the issuer has authority to impose, levy, or charge; or
(iii) revenue expected to be generated by the facility to be financed.
Structure Maryland Statutes
Housing and Community Development
Division I - Housing and Community Programs
Title 4 - Division of Development Finance
Subtitle 2 - Community Development Administration
Section 4-225 - Financing Procedures -- in General
Section 4-226 - Financing Procedures -- Powers of Administration
Section 4-227 - Energy Conservation and Solar Energy Financing
Section 4-228 - Infrastructure Financing
Section 4-229 - Infrastructure Financing -- Local Obligations
Section 4-230 - Issuing Procedures of Local Obligations
Section 4-231 - Contents of Enabling Resolution or Ordinance
Section 4-232 - Authorization of Resolution or Ordinance
Section 4-232.1 - Pledge by County to Secure Local Obligations
Section 4-233 - Pledges Securing Local Obligations
Section 4-233.1 - Capital Reserve Fund
Section 4-234 - Guarantee of Loans
Section 4-235 - Mortgage Loans and Reverse Equity Mortgage Loans
Section 4-236 - Mortgage Lenders
Section 4-237 - Mortgage Purchases and Loans
Section 4-238 - Commitment to Purchase Mortgage Loans
Section 4-239 - Loans to Eligible Mortgage Lenders
Section 4-240 - Certificate of Mortgage Lender
Section 4-241 - Assignment and Assumption of Residential Mortgage Loans
Section 4-242 - Priority to Selling Residential Property Owned by Administration