Section 16-302 - Authority to borrow money for certain purposes. - Maryland Statutes

§ 16-302. Authority to borrow money for certain purposes.
 

(a)  In general.- Notwithstanding any other provisions of this subtitle, and subject to funds being appropriated, the Board of Community College Trustees for Allegany County, Anne Arundel County, Baltimore County, Carroll County, Cecil County, the College of Southern Maryland, Chesapeake College, Frederick County, Garrett County, Hagerstown Community College, Howard County, Montgomery County, Prince George's County, or Wor-Wic Community College may borrow money to acquire an interest in personal property, including fixtures, for the operation of the community college, on terms and conditions that the Board of Trustees considers proper. 

(b)  Security.- A borrowing under this section may be secured by the personal property acquired or revenues derived from the property. 

(c)  Cancellation.- All multiyear financing agreements reflecting borrowing under this section shall be subject to cancellation by the Board of Trustees at the end of a fiscal year if sufficient funds are not appropriated to fund the agreement in subsequent years. 

(d)  Debt not State or political subdivision obligation.-  

(1) Borrowing under this section does not create or constitute a debt or obligation of the State or any political subdivision of the State other than a community college. 

(2) Borrowing under this section does not constitute a debt or obligation of the General Assembly or pledge the faith and credit of the State within the meaning of Article III, § 34 of the Maryland Constitution. 

(e)  Uses of borrowing.-  

(1) This subsection does not apply to the Board of Community College Trustees for Garrett County. 

(2) (i) Borrowing under this section shall be for the use of financing intermediate term lease purchasing agreements. 

(ii) The term of any lease purchase agreement entered into under this section may not exceed the estimated life of the equipment subject to the financing agreement. 

(f)  Lease purchase agreements.-  

(1) The Board of Community College Trustees for Garrett County may enter into a lease purchase agreement if the lease purchase agreement is consistent with the provisions of this section. 

(2) The term of any lease purchase agreement entered into by the Board of Community College Trustees for Garrett County may not exceed the estimated life of the equipment subject to the financing agreement. 
 

[1992, ch. 282; 1995, ch. 405; 1996, ch. 10, § 16; 1997, ch. 744; 2004, ch. 35.]