(A) Repayment of loans. A property owner participating in the program shall repay the loan through a surcharge on his or her real property tax bill. The Clean Energy Loan Program Administrator shall provide the county with written notice of the execution of a Clean Energy Loan Financing Agreement. If the Clean Energy Loan Program Administrator provides such notice to the county prior to May 1 in any given year, the county shall add the surcharge to the tax property bill on July 1st of that same year. If the Clean Energy Loan Program Administrator provides such notice on or after May 1 in any given year, the county shall add the surcharge to the tax property bill on July 1st of the year immediately following. The surcharge shall constitute a first lien on the property from the date it becomes payable until the unpaid surcharge and interest and penalties on the surcharge are paid in full, regardless of a change in ownership, whether voluntary or involuntary. A person or entity that acquires property subject to a surcharge assumes the obligation to pay such surcharge. The county may assign the surcharge lien to the Clean Energy Loan Program Administrator.
(B) Calculation. The surcharge for a clean energy loan shall include the clean energy loan principal, accrued interest, and any administrative costs incurred by the county.
(C) Notice of levy and lien of surcharge. Upon receiving written notice from the Clean Energy Loan Program Administrator of the execution of a Clean Energy Loan Financing Agreement, the property owner shall execute a notice with the county and the clean energy lender that will be recorded in the land records of Carroll County, at the expense of the property owner, and which shall include:
(1) The date the clean energy loan was made to the property owner and the property became subject to the surcharge;
(2) The term of the clean energy loan and over which the surcharge will apply to the property;
(3) The clean energy loan obligation and estimated county administrative costs for the first year;
(4) The annual principal and interest amount for each year of the term of the clean energy loan, including any partial year prorated amounts;
(5) Prepayment requirements and any prepayment premium that may apply to a prepayable clean energy loan;
(6) Notice that the clean energy loan obligations and the county's administrative costs will be repaid through a surcharge included on the owner's real property tax bill due and payable on the same date as the real property tax bill;
(7) Notice that an unpaid clean energy loan surcharge constitutes a first lien on the property that has priority over prior or subsequent liens in favor of private parties and that the surcharge will continue as a lien on the property from the date it becomes payable until the unpaid surcharge and interest and penalties on the surcharge are paid in full, regardless of a change in ownership of the property, whether voluntary or involuntary; and
(8) Notice that if payments of surcharges are not timely paid, the surcharge will be collectible as a tax lien through the tax sale process authorized under Md. Code, Tax-Property Article, Title 14, Subtitle 8 and in accordance with Chapter 33 of the Carroll County Code of Public Local Laws and Ordinances and that an overdue surcharge will be so collected, irrespective of whether real property taxes (or any other taxes, charges, or assessments) are due and owing.
(D) Default. In the event of default on the clean energy loan surcharge, the lien will be collected pursuant to the tax sale process irrespective of whether property taxes (or any other taxes, charges, or assessments) are due and owing. The county shall not incur any liability to the clean energy lender or others in the event of default. Nothing in this subchapter shall prevent the clean energy lender from pursuing its rights and remedies under the Clean Energy Financing Agreement provided however that the terms of the Clean Energy Financing Agreement are in compliance with this subchapter.
(E) Payment to clean energy lender. The county shall have no ownership of the surcharges collected except for administrative costs provided under this subtitle. The county shall pay all surcharge payments received in any calendar month to the applicable clean energy lender or the Clean Energy Loan Program Administrator within 30 days after the end of the month in which such amounts are collected. The county shall have no obligation to make payments to any clean energy lender with respect to any clean energy loan obligation other than that portion of surcharge actually collected from a property owner for the repayment of a clean energy loan.
(Ord. 2017-09, passed 10-19-2017)