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At any time after the issuance of bonds has been authorized by a local law enacted by the council in legislative session and it is the purpose and intent of the council to issue and sell bonds as indicated by a resolution of the council, the council may borrow money for the purpose for which the bonds are authorized to be issued in anticipation of the receipt of the proceeds of the sale of the bonds and within the maximum authorized amount of the bond issue; the council may retire all or any part of such loans through current revenues or other funds, in which event the bond issue, when and if the same are sold, shall be reduced by the amount of such loans retired. Negotiable notes or certificates of indebtedness shall be issued for all such loans and the council shall be resolution provide for the form and maturity, not exceeding five (5) years, the execution and the rate of interest thereon, not exceeding six (6) percent per annum; may sell the same, with or without advertisement, in any manner it deems to be in the best interest of the county; and shall have the right to reissue or renew the same provided all of the notes or certificates of indebtedness shall mature within the time herein provided. (Mont. Co. Code 1965, § 2-104; 1933, ch. 544, § 1.)
All of the notes issued under the provisions of the preceding section shall be the direct and general obligations of the county and as to all of them in the event sufficient funds are not received from the anticipated sources the council is hereby directed to levy a tax at the next period for levying county taxes at a rate sufficient to provide for the payment of the principal and interest for all of the outstanding notes or certificates of indebtedness. (Mont. Co. Code 1965, § 2-105; 1933, ch. 544, § 3.)
(a) The council is hereby authorized and empowered to borrow upon its faith and credit such sum at any time, or from time to time, as the council may in its discretion determine, subject to the limitations hereinafter set forth, to be necessary to provide funds for the payment of the current obligations of the county, in anticipation of the collection of taxes or other current revenues, and to issue and sell notes therefor. The council is authorized and empowered to provide by resolution for the issuance of notes to bear interest at a rate not exceeding six (6) percent per annum, payable at the time of the issuance of the notes or thereafter, and the council is further authorized and empowered to provide by resolution for the issuance of renewal notes with like limitations as to interest, when the council shall deem it necessary to so provide for the payment of any such notes or renewal notes theretofore issued; provided, that all such renewal notes shall mature within the time hereinafter limited for the ultimate maturity of the notes, in renewal of which renewal notes are issued, except as hereinafter provided. Such notes shall mature not later than ninety (90) days after the expiration of the fiscal year in which the same are issued and shall not thereafter be renewable or payable by the issuance of renewal notes; except, that any such renewal notes, authorized by this section and sections 20-11 and 20-12 and issued within three (3) months prior to the expiration of any one (1) fiscal year, for the purpose of providing for the payment of notes authorized by this section and sections 20-11 and 20-12 and issued during the fiscal year, may mature at any time during the fiscal year next succeeding the fiscal year in which the original notes were issued. Before the passage of any resolution authorizing the issuance of the notes the director of finance shall submit to council a statement showing:
(1) The amount of uncollected taxes for the current fiscal year, if theretofore levied, but otherwise the amount of the tax levy for the preceding fiscal year, regardless of what part thereof shall have been collected;
(2) The estimated amount of uncollected revenue for the current fiscal year, excepting taxes;
(3) The face value of all notes issued pursuant to the authority contained in this section during the current fiscal year and which by their terms are payable within one (1) year and three (3) months from the date of their respective issuances, as herein provided.
(b) The substance of such statement by the director of finance shall be recited in the resolution, and it shall be further recited that the face value of the notes so authorized by the resolution, together with the amount of item (3) above, do not exceed in the aggregate seventy-five (75) percent of the total of items (1) and (2) above, and no funds shall be borrowed in anticipation of taxes and no notes issued therefor by the council if the face value of such notes, together with the amount of item (3) above shall exceed seventy-five (75) percent of the total of items (1) and (2) above.
(c) Such notes and renewal notes may be sold by the council at such time at public or private sale, and in such form and upon such terms as the council may determine to be for the best interest of the county; provided, that all of the limitations hereinbefore or hereinafter set forth shall be complied with; and, provided further, that such notes or renewal notes shall not be sold at less than par value, except upon a vote of a majority of the members of the council, and; provided further, that all such notes or renewal notes shall recite upon their face that they are issued pursuant to the authority and in compliance with all of the conditions and limitations contained in this section and sections 20-11 and 20-12. The proceeds of the sale of renewal notes shall be applied solely to the payment of the note for the retirement of which renewal notes are issued.
(d) Notes and renewal notes shall be and remain the obligations of the county issued upon its full faith and credit, and the entire property subject to taxation in the county shall be liable for the payment thereof and the council shall levy a tax upon all property subject to assessment by it sufficient to provide funds for the payment of the principal and interest of the notes or renewal notes as they respectively mature in each and every year that such notes or renewal notes are outstanding; provided, that the amount of the tax so levied may be reduced in any one (1) year by the amount of collected or uncollected tax revenue, which the council shall appropriate for the purpose of paying such notes as they respectively mature, and the interest thereon. (Mont. Co. Code 1965, § 2-106; 1933 (Sp. Sess.), ch. 12, § 1.)
(a) The council is hereby authorized and empowered from time to time to borrow money upon the faith and credit of the county and to issue and sell negotiable notes therefor in an amount not to exceed three hundred thousand dollars ($300,000.00) in any one (1) fiscal year and to be known as "Montgomery County certificates of indebtedness." Such notes shall be in such denominations and shall bear such rates of interest, not exceeding six (6) per centum per annum, payable at the time of the issuance of such notes or thereafter, as may be determined by the council to be for the best interests of the county. Subject to the limitations hereinafter set forth, such notes may be issued at one time or from time to time and in such form, and may be sold in such manner, either at public or private sale, as the council of the county may by resolution determine. Such notes shall mature within not more than five (5) years from their respective dates, and such notes may be renewed from time to time, and new notes may be issued at such times, in payment thereof; provided, that all such notes and renewals thereof shall mature within five (5) years from the date of the issuance of such original notes; and, provided further, that the proceeds of the sale of such new or renewal notes shall be applied solely to the payment of the notes for the retirement of which such new or renewal notes are issued. Prior to the issuance of the notes the council shall pass a resolution reciting that, in the opinion of the council, it is deemed necessary to expend certain specific sums for certain functions of the county government for which no appropriation or an insufficient appropriation has been made in the annual appropriation resolution and that an emergency appropriation is necessary to provide for the functions, and the resolution may authorize the issuance and sale of the notes provided for herein to provide funds to meet the emergency appropriation; provided, that the amount of the notes authorized to be issued and sold in such resolution shall not exceed the amount of the emergency appropriation authorized therein.
(b) Notes and new or renewal notes shall be and remain the obligations of the county issued upon its full faith and credit, and the entire property subject to taxation in the county shall be liable for the payment thereof, and the council shall levy a tax upon all property subject to assessment in the county sufficient to provide funds for the payment of the principal and interest of all such notes whenever issued, as they respectively mature, in each and every year that any of such notes are outstanding. If any of such notes issued in any one (1) fiscal year, or if any such new notes issued in renewal thereof shall not have been paid within four (4) years from the date of the original notes issued in such one (1) fiscal year, the council shall include in the next annual tax levy thereafter a tax in an amount sufficient to provide for the payment of all of such notes so issued in such one (1) fiscal year or the renewals thereof to the end that such notes or any renewals thereof shall mature and be paid within not more than five (5) years from the date of the original notes as hereinbefore provided. (Mont. Co. Code 1965, § 2-107; 1933 (Sp. Sess.), ch. 12, § 2.)
Any and all of the notes issued pursuant to the provisions of sections 20-8, 20-10 and 20-11 and the interest thereon shall be and remain exempt from state, county and municipal taxes of every kind whatsoever in the state. (Mont. Co. Code 1965, § 2-108; 1933 (Sp. Sess.), ch. 12, § 3.)
The county executive shall be authorized and empowered to employ, whenever he deems such employment for the best interests of the county, an agent or broker to assist in negotiating or selling any bonds, certificates of indebtedness or notes of the county and to pay for the services of such agent or broker out of the proceeds of sale or out of any other available funds of the county; provided, that the amount so paid in connection with the sale of the bonds shall not exceed one-half of one (0.5) percent of the face amount thereof, and in connection with the sale of certificates of indebtedness and notes, shall not exceed one-half of one (0.5) percent of the face amount thereof. (Mont. Co. Code 1965, § 2-109; 1933, ch. 158; 1969 L.M.C., ch. 40, § 2.)
(a) The county may for any public purpose borrow money and may issue in evidence thereof negotiable, unsecured, promissory notes in the form of commercial paper. Such notes shall be hereinafter referred to as "Montgomery County commercial paper." No commercial paper issued under the authority of this section shall have a maturity of more than one (1) year. Commercial paper may not be issued unless authorized by resolution of the county council. A separate resolution is not required for each issuance of commercial paper, provided the total amount of outstanding commercial paper does not exceed the amount previously authorized by resolution. The authority to issue commercial paper shall be exercised, from time to time, in the manner established by this section.
(b) The resolution authorized by subsection (a) of this section shall delegate to the county executive the power to enter into all agreements which may be necessary to secure and market the commercial paper authorized by this section. The provisions of chapter 11B of the Montgomery County Code as amended, shall be applicable to the selection of a dealer and shall be inapplicable to the issuance, securing or marketing of such paper. Such resolution shall also delegate to the county executive the authority to fix, by order, the terms, maturity, interest rates, method of issuance and sale and other conditions applicable to the commercial paper hereby authorized or the method by which such matters are to be fixed and determined.
(c) The commercial paper issued pursuant to the authority contained in his section shall be issued upon the full faith and credit of the county. The entire property subject to assessment and taxation within the county shall be liable for the payment of the principal of and interest on the commercial paper issued pursuant to the authority contained in this section. The council shall levy a tax upon all such property in rate and amount sufficient to provide funds for the payment of such principal and interest of the commercial paper at maturity.
(d) If the proceeds of any Montgomery County commercial paper are used to finance, in whole or in part, public facilities as that term is defined in this chapter 20, such Montgomery County commercial paper may be redeemed from proceeds resulting from the issuance of general obligation bonds of Montgomery County, and the full faith and credit and unlimited taxing power of Montgomery County shall be pledged for the payment of such bonds. The general obligation bonds authorized by this section shall be issued in accordance with section 20-14 to section 20-21, inclusive, of this chapter or pursuant to law duly enacted by the council.
(e) The commercial paper issued pursuant to the authority contained in this section, and the interest thereon, shall be and remain exempt from state, county and municipal taxes of every kind whatsoever in this state.
(f) The authority contained in this section shall be in addition and supplementary to any other authority vested in the county to borrow money, and no statutory requirements of advertisement or public sale which are applicable to the issuance and sale of other public debt by the county shall be applicable to the issuance and sale of the Montgomery County commercial paper hereby authorized.
(g) The total amount of Montgomery County commercial paper issued and outstanding under the provisions of this section shall never at any one time exceed fifty million dollars ($50,000,000.00). (1983 L.M.C., ch. 54, § 1.)
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