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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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LOCAL GOVERNMENT |
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DIVISION IV. LOCAL FINANCE |
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TITLE 16. IN GENERAL |
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SUBTITLE 4. TAX AND DEBT AUTHORITY FOR ASSISTANCE TO DESTITUTE AND UNEMPLOYED RESIDENTS |
§ 16-405. Authority to borrow money
Latest version.
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(a) Scope of section. -- This section does not apply to Baltimore City.
(b) Authorization. -- A county or municipality may borrow money under this subtitle on its full faith and credit.
(c) Evidence of debt. -- A county or municipality may issue individual notes, certificates of debt, or other evidence of indebtedness for any amount borrowed under this subtitle.
(d) Conditions of debt. -- Subject to the limits in this subtitle, the governing body of a county or municipality shall determine:
(1) the manner, method, means, and conditions for borrowing money under this subtitle;
(2) the kind and character of the debt issued;
(3) the form and substance of the debt issued;
(4) the interest rate of the debt issued;
(5) the manner, method, or means of sale, both public or private, of the debt issued;
(6) when the money shall be borrowed; and
(7) when the debt shall be issued.
(e) Debt limit. -- A county or municipality may not incur debt under this subtitle in an aggregate amount that exceeds the total amount estimated to be raised by a property tax imposed by the county or municipality at a rate of 3.2 cents on each $ 100 of assessment.
(f) Repayment of obligation -- Period of repayment. -- A debt incurred under this subtitle shall mature and be paid within 2 years after the date the debt was incurred.
(g) Repayment of obligation -- Tax to repay debt. -- Subject to § 16-404(b) of this subtitle, a county or municipality that borrows money under this subtitle shall impose a property tax in an amount sufficient to repay the money borrowed, with interest, in full within 2 years after the date the debt was incurred.