Maryland Statutes
Part II - Regulation by Municipalities
Section 9-712 - Bonds Issued by Municipal Authorities -- Tax Levy to Pay Interest and Principal

(a)    While any bonds issued under Part II of this subtitle are outstanding, the municipal authority annually shall levy a tax against all of the assessable property served within the municipality to pay the principal and interest on the bonds.
    (b)    The tax shall be:
        (1)    Sufficient to pay:
            (i)    When due, the principal and interest on the bonds; or
            (ii)    The part of the principal or interest on the bonds that is not paid for by the levy of the annual front-foot assessment under § 9-713 of this subtitle or by the service charges collected under § 9-714 of this subtitle; and
        (2)    Treated the same as any other municipal tax in every respect, including as to:
            (i)    Priority rights;
            (ii)    Interest;
            (iii)    Penalties; and
            (iv)    Manner of determination, levy, and collection.
    (c)    (1)    Each person involved in the levy or collection of the taxes shall perform the duties promptly and properly.
        (2)    A person may not use any funds collected under this section for any purpose other than the payment of principal and interest on the bonds.

Structure Maryland Statutes