Section 12-113 - Payment of bonds. - Maryland Statutes

§ 12-113. Payment of bonds.
 

(a)  Bonds payable from revenue.-  

(1) A bond and the interest on a bond are limited obligations of the public body. 

(2) Except for bond anticipation notes and notes in the nature of commercial paper, the principal of, premium, and interest on a bond are payable solely from: 

(i) money from the financing of a facility; or 

(ii) other money made available to the public body. 

(3) Bonds and the interest on them: 

(i) are not debts or charges against the general credit or taxing powers of a public body within the meaning of any constitutional or charter provision or statutory limitation; and 

(ii) may not give rise to any pecuniary liability of an issuing public body. 

(4) A bond may state on its face that the bond: 

(i) is issued under this subtitle; and 

(ii) is not a debt to which the public body's faith and credit is pledged. 

(b)  Appointment of receiver.- On default in the payment of the principal of or interest on a bond, a court with jurisdiction: 

(1) may appoint a receiver or take other appropriate action to provide for the payment of the bond; and 

(2) shall apply any available revenue as this subtitle or a resolution adopted under this subtitle provides. 
 

[An. Code 1957, art. 41, § 14-106(e), (f); 2008, ch. 306, § 2.]