Section 12-302 - Ordinance or resolution. - Maryland Statutes

§ 12-302. Ordinance or resolution.
 

(a)  In general.- To issue a bond, a political subdivision shall adopt an ordinance or resolution that: 

(1) describes the proposed undertaking to be financed by the bond proceeds; 

(2) requires compliance with § 12-303 of this subtitle before the bond is issued; and 

(3) specifies the maximum principal amount of the bond. 

(b)  Specifications - Authority to prescribe.- As the political subdivision considers appropriate to effect the financing of the proposed undertaking, the ordinance or resolution may: 

(1) specify the items listed in subsection (c) of this section; 

(2) authorize the finance board of the political subdivision to specify those items by resolution or ordinance; or 

(3) authorize the chief executive of the political subdivision to specify those items by executive order. 

(c)  Specifications - Contents.- For each issuance of a bond, the political subdivision may specify: 

(1) the principal amount; 

(2) the interest rate or, for floating or variable rates of interest, the method to determine the interest rate; 

(3) the manner and terms of sale, including whether by competitive or negotiated sale; 

(4) the time of execution, issuance, and delivery; 

(5) the form and denomination; 

(6) the source, manner, times, and places to pay principal or interest; 

(7) conditions for redemption before maturity; 

(8) the actions taken to comply with § 12-307 of this subtitle; 

(9) the purposes for which proceeds may be spent; 

(10) the source of security; and 

(11) other provisions that the governing body of the political subdivision determines are necessary or desirable to effect the financing of the proposed undertaking. 
 

[An. Code 1957, art. 41, §§ 14-803(b), 14-804(b), 14-807; 2008, ch. 306, § 2.]