Section 9-711 - Bonds issued by municipal authorities - In general. - Maryland Statutes

§ 9-711. Bonds issued by municipal authorities - In general.
 

(a)  Purpose of bonds.- A municipal authority may issue bonds when and in the amounts needed to provide funds for all or part of a system's: 

(1) Design; 

(2) Construction; 

(3) Extension; 

(4) Alteration; 

(5) Purchase; or 

(6) Condemnation. 

(b)  Bond privileges and limitations.- The bonds issued under this subtitle: 

(1) May be issued without previous legislative authority; 

(2) May be outstanding in addition to the total indebtedness otherwise permitted by law; 

(3) May be of any type and denomination determined by the municipal authority, so long as no bonds mature later than 50 years from the date of issue; 

(4) Shall be exempt forever from any State, county, or municipal taxation; and 

(5) Shall be a lien on all property within the municipality that issues them. 

(c)  Referendum.-  

(1) Before issuing bonds under Part II of this subtitle, a municipal authority shall submit to a referendum of the voters of the municipality the question of whether to issue the bonds. 

(2) The referendum shall be held at: 

(i) Any regular municipal election; or 

(ii) A special municipal election, provided that the voters are given at least 20 days' notice of the election. 

(3) The referendum ballot shall include the words "for . . . bonds" and "against . . . bonds". 

(4) If a majority of the votes cast are "for . . . bonds", the municipal authority may issue the bonds. 

(5) If a majority of the votes cast are "against . . . bonds", the municipal authority: 

(i) May not issue the bonds; but 

(ii) May submit the question at any later regular or special municipal election as provided under this section, until a majority of the votes cast is "for . . . bonds". 
 

[An. Code 1957, §§ 411, 425; 1982, ch. 240, § 2.]