Maryland Statutes
Part III - Bond and Grant Anticipation Notes
Section 8-220 - Interest Rate Limit on Bonds

(a)    (1)    Except for the provisions of this section, each State unit shall comply with the provisions, requirements, and limitations in the enabling act.
        (2)    If a State unit is unable to sell bonds to pay the bond anticipation notes under this Part III of this subtitle when due because of an interest rate limitation in the enabling act, the State unit may:
            (i)    issue bonds in a total principal amount sufficient to pay the principal of and not more than 1 year’s interest on the notes; and
            (ii)    provide for payment of interest on the bonds at a rate that is higher than the interest rate limitation in the enabling act.
        (3)    This section is supplemental authority for a State unit to issue bonds free of an interest rate limitation to pay outstanding bond anticipation notes under this Part III of this subtitle.
    (b)    A resolution that authorizes the issuance of bonds under subsection (a)(2) of this section shall refer to:
        (1)    the enabling act; and
        (2)    this section.

Structure Maryland Statutes