(a) Generally. With respect to bonds of the County issued for water or wastewater facilities, the following provisions shall be considered an exercise of the authority conferred by Local Government Article, § 10-203, of the State Code, and § 719 of the Charter, and those provisions shall govern the issuance of the bonds until altered by law.
(b) General obligation bonds. The County may issue water or wastewater facilities bonds payable primarily from special taxes levied in specified areas or from any assessments or charges for special benefits or services, as provided in this Code, in which case the County shall pledge its faith and credit to the collection and the primary sources of revenue in accordance with covenants contained in the ordinance authorizing the bonds, and to make up any deficiency on such primary sources by the levy of ad valorem taxes, without limitation, as authorized by § 718(f) of the Charter. The bonds shall constitute general obligations of the County and they shall so recite.
(c) Revenue bonds. The County, in the alternative, may issue water or wastewater facilities bonds payable exclusively from assessments or charges for special benefits or services, in which case the County shall pledge its faith and credit to the collection and application of the revenues in accordance with covenants contained in the ordinance authorizing the bonds. The bonds shall constitute revenue bonds of the County, payable solely or exclusively from the revenues pledged thereto, and they shall so recite.
(d) When issuance is prohibited. The County may not issue bonds of either type if, at the time of the issuance of the bonds, the amount of the bonds plus the unpaid amount of bonds issued by the County for water or wastewater facilities exceeds 5.6% of the County's assessable basis of real property, 14% of the County's assessable basis of personal property, and 14% of the operating real property described in the Tax-Property Article, § 8-109(c), of the State Code, computed as of the first day of the then-current fiscal year.
(e) Variations from Charter. In the issuance of bonds of either type, §§ 720 and 721 of the Charter shall be complied with except that the declaration as to source of payment shall be modified as set forth above. In addition, the ordinance authorizing the bonds may provide for the capitalization of interest for a period of two years from date of issue as well as for the deferment of maturities for that period. In the case of bonds payable exclusively from certain revenues, the ordinance may also provide for the sale of the bonds by private negotiation.
(f) Agreement or indenture of trust. The County, in the ordinance authorizing an issue of bonds payable exclusively from revenues, may authorize the execution by the County Executive with a qualified bank or trust company of an agreement or indenture of trust to secure payment. The agreement or indenture of trust may contain covenants binding on the County with respect to the use and application of specific revenues, the establishment and maintenance of appropriate reserves, the prior redemption of bonds, the issuance of additional bonds, the employment of consultants, the maintenance and operation of water or wastewater facilities and the fixing and alteration of rates and charges for the use and employment of such facilities. In addition, the County may agree to the appointment by a court of competent jurisdiction of a receiver to maintain and operate the water or wastewater facilities securing the agreement or indenture of trust if the County defaults in the performance of its covenants under the agreement, including covenants to pay the principal of and interest on the bonds. However, in order to assure the self-liquidating status of any water or wastewater facilities constructed or acquired with the proceeds of bonds issued under such an agreement or indenture of trust, the County may not agree to deposit under the agreement any revenues other than net revenues from the operation of the water or wastewater facilities.
(g) Rule of construction; conflicts. Nothing in this section shall be construed as a limitation on the power of the County Council to make other or different provisions respecting bonds as may be permitted by the general laws of the State or the Charter, and in the case of a conflict between this section and any other or different provisions, the latter shall prevail.
(1985 Code, Art. 6, § 9-103) (Bill No. 54-01)