Section 9-640 - Short term borrowing. - Maryland Statutes

§ 9-640. Short term borrowing.
 

(a)  "Governmental agency" defined.- In this section, "governmental agency" means: 

(1) The federal government; 

(2) This State; or 

(3) An agency or instrumentality of the federal government or this State. 

(b)  Permitted purposes for borrowing from governmental agencies.- A district may borrow from a governmental agency the amount of money that the sanitary commission considers necessary to pay the organization and planning costs for a project or a service area, including costs for: 

(1) Engineering services; 

(2) Legal services; 

(3) Estimates of costs; 

(4) Estimates of revenue; 

(5) Plans or specifications; and 

(6) Surveys. 

(c)  Repaying governmental agencies.-  

(1) A district may not pay interest on money borrowed from a governmental agency under this section. 

(2) If a district borrows from a governmental agency under this section, the district shall repay the lending governmental agency: 

(i) When work begins on the water system or sewerage system for which the borrowing was made; and 

(ii) Only from funds or bond revenues that, under this subtitle, relate to the project. 
 

[An. Code 1957, art. 43, § 650; 1982, ch. 240, § 2; 2006, ch. 44, § 6.]