§ 9-945. Contracts for services and use of projects

   (a) Authority to contract. -- An authority may enter into any contract that the authority determines is necessary or incidental to the exercise of its powers or the performance of its duties under this subtitle, including a contract with:

   (1) Any federal agency, this State, any agency of this State, any political subdivision, or any person:

      (i) Providing for or relating to furnishing the services and facilities of a project of the authority; or

      (ii) In connection with the services and facilities of a water system or sewerage system that is owned or controlled by the federal agency, this State, the agency of this State, the political subdivision, or the person;

   (2) Any person, political subdivision, or public authority of this or any adjoining state for the construction and operation of a project that is located partly in this State and partly in the adjoining state; and

   (3) Any federal agency or political subdivision relating to:

      (i) The use by the authority of the services or facilities of any water system or sewerage system that is not owned or operated by the authority; or

      (ii) The use by the federal agency, political subdivision, or residents of the political subdivision of:

         1. Any project acquired or constructed by the authority under this subtitle; or

         2. The services or facilities of the project.

(b) Conditions and provisions of contracts generally. -- A contract under this section:

   (1) Is subject to any provision, limitation, or condition that is contained in:

      (i) A resolution of the authority that authorizes the authority to issue bonds; or

      (ii) A trust agreement that secures bonds of the authority;

   (2) May provide for the collection of fees, rates, or charges for the services and facilities furnished to a political subdivision or any of its residents, and may provide that the collection be done:

      (i) By a political subdivision or any agent of a political subdivision; or

      (ii) By any agent of an authority; and

   (3) May provide for the enforcement of any delinquent charge.

(c) Laws not repealable but to benefit bondholders. -- Any law that is enacted by a political subdivision under a contract under this section:

   (1) Is not repealable if any bond to which the contract relates is outstanding and unpaid; and

   (2) Is for the benefit of the bondholders.

(d) Sufficiency of rates, fees, and charges to pay obligations. -- A contract under this section and any law of a political subdivision that is enacted under the contract shall provide that the total of any rates, fees, and charges is sufficient to pay all of the obligations that are assumed by the other party to the contract.

HISTORY: 1985, ch. 173, § 2.