Section 12-312 - Loans and donations to code authority. - Maryland Statutes

§ 12-312. Loans and donations to code authority.
 

(a)  Money for administrative expenses and overhead.-  

(1) When a code authority becomes authorized to do business and exercise its powers, the political subdivision: 

(i) immediately shall estimate the amount of money necessary for the administrative expenses and overhead of the code authority during the first year thereafter; and 

(ii) shall appropriate that amount to the code authority out of money in the political subdivision's treasury not appropriated to some other purpose. 

(2) The political subdivision shall pay the money appropriated to the code authority as a donation. 

(b)  Loans for political subdivision.-  

(1) Subject to paragraph (2) of this subsection, the political subdivision shall appropriate to the code authority money needed to comply with any requirement imposed on it by its articles of organization, if enough money for the code authority to comply is not available from State, federal, or other sources. 

(2) A political subdivision is not required to provide any money for a code authority to satisfy a judgment, liability, debt, or other financial obligation to a third party. 

(c)  Reimbursements.-  

(1) A political subdivision located wholly or partly in the area of operation of a code authority may lend, donate, or agree to lend or donate money to the code authority. 

(2) The code authority, when it has the money available, shall reimburse the political subdivision for all loans made to it by the political subdivision. 
 

[An. Code 1957, art. 44A, § 1-212; 2006, ch. 63, § 2.]