Section 3-517 - Agreement between Department and county. - Maryland Statutes

§ 3-517. Agreement between Department and county.
 

(a)  Agreement required.- Before it sells any bonds under this subtitle, the Department shall enter into an agreement with each participating county as required by this section. 

(b)  Contents of agreement.- The agreement shall: 

(1) Specify that the bonds to be issued on behalf of the county will be repaid by the county under such terms and conditions as the Department and the counties deem appropriate; 

(2) Describe the source and nature of revenues the county will pledge to the repayment of the bonds, which revenues may include highway user revenues under § 8-401 of this article or any other revenues of the county; and 

(3) Describe any other terms or conditions that the Department deems necessary or appropriate to assure prompt and full repayment of the bonds. 

(c)  Pledge or assignment of all or portion of rights under agreement.- The Department may pledge or assign all or a portion of its rights under agreements made pursuant to this section to guarantee repayment of bonds. 

(d)  Pledge of highway user revenues.-  

(1) In order to enhance the security or the marketability of the bonds, a county may agree with the Department to pledge any moneys that the county is entitled to receive from the county's share of highway user revenues, but a county may not pledge moneys that are pledged or dedicated to another purpose by State law. 

(2) In the event of such pledge, the State Comptroller and the State Treasurer may cause in accordance with the terms of such agreement such moneys to be paid to the Department or any trustee designated by the Department. 
 

[1993, ch. 539.]