Maryland Statutes
Part IV - Powers and Duties of Districts
Section 9-640 - Short Term Borrowing

(a)    In this section, “governmental agency” means:
        (1)    The federal government;
        (2)    This State; or
        (3)    An agency or instrumentality of the federal government or this State.
    (b)    A district may borrow from a governmental agency the amount of money that the sanitary commission considers necessary to pay the organization and planning costs for a project or a service area, including costs for:
        (1)    Engineering services;
        (2)    Legal services;
        (3)    Estimates of costs;
        (4)    Estimates of revenue;
        (5)    Plans or specifications; and
        (6)    Surveys.
    (c)    (1)    A district may not pay interest on money borrowed from a governmental agency under this section.
        (2)    If a district borrows from a governmental agency under this section, the district shall repay the lending governmental agency:
            (i)    When work begins on the water system or sewerage system for which the borrowing was made; and
            (ii)    Only from funds or bond revenues that, under this subtitle, relate to the project.