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(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.)
As used in this Chapter, public facility means:
(a) The construction, reconstruction, improvement, extension, alteration, repair, purchase, conversion, and modernization of any public school building or building used for public school purposes, including the site therefor, the cost of acquiring any such building or site, any architectural and engineering services, including preparation of any plan, drawing, or specification for such school or the conversion or modernization thereof and the development of the grounds, and all customary permanent appurtenances and recreational and pedagogical equipment for such school;
(b) The construction, improvement, repair, opening, relocation, grading, resurfacing, widening, extension and drainage of all public roads, streets, highways and sidewalks in the county now or hereafter maintained and operated by or under the jurisdiction of the county, including the acquisition of necessary rights-of-way, the acquisition of equipment for highway construction, maintenance and repair and planning and engineering services; the planning, design, construction and reconstruction of free bridges constituting parts of such roads, streets or highways; the planning, construction, repair and permanent improvement of any storm water drainage systems necessary in the county;
(c) The construction, reconstruction, extension, acquisition, improvement, enlargement, alteration, repair and modernization of any building or structure that is or will be owned by the County or any building or structure used to house any function of County government, especially any health clinic, rescue squad, fire engine house or police station, airport or landing field, park or recreational facility, or any combination of the foregoing, including the acquisition and development of any site, any architectural and engineering services, and the acquisition and installation of any necessary furnishing, fire fighting and rescue squad equipment, and fixed permanent equipment;
(d) The construction, reconstruction, improvement, extension, enlargement, alteration, conversion, modernization, repair, relocation, grading, resurfacing, widening, draining, and acquisition (including the preparation of plans, architectural and engineering services) of transit facilities which are defined to be all those matters and things utilized in rendering mass transit service by means of rail, bus, water or air and any other mode of travel, including without limitation, tracks, rights-of-way, bridges, tunnels, subways, rolling stock for rail, motor vehicle, marine and air transportation, stations, terminals and ports, areas for parking and all equipment, fixtures, buildings and structures and services incidental to or required in connection with the performance of mass transit service; and any part of the county’s share of contributions agreed to be made under any contracts or agreements by the Washington Suburban Transit District to the capital required for the construction or acquisition of transit facilities (as defined in this subsection or as may be defined in chapter 870 of the Laws of Maryland of 1965, as the same may be amended from time to time) in the Washington metropolitan area, as provided by chapter 870 of the Laws of Maryland of 1965, as amended from time to time;
(e) The construction, reconstruction, improvement, extension, acquisition, enlargement, alteration, repair, modernization, relocation, grading, resurfacing, widening and drainage of off-street parking lots and facilities for the parking of automobiles and other vehicles, within and for the parking lot districts heretofore or hereafter established by law as the same are described in section 60-1 of the Montgomery County Code as amended from time to time, including the acquisition and development of sites therefor, the architectural and engineering services incident thereto and the acquisition and installation of necessary furnishings and fixed permanent equipment therefor;
(f) The planning, acquisition, construction, improvement, repair and extension of facilities, including the sites therefor, for public housing or housing for persons of low, moderate or eligible incomes, as defined pursuant to law;
(g) The planning, acquisition, construction, improvement, repair, and extension of any water system or facility and sewerage system or facility;
(h) The purchase of agricultural easements as defined in Article 3 of Chapter 2B; and
(i) The purchase of facade easements necessary to implement a community revitalization project. (Mont. Co. Code 1965, § 2-111; 1968 L.M.C., Ex. Sess., ch. 2 § 1; 1971 L.M.C., ch. 23, § 1; 1974 L.M.C., ch. 39, § 1; 1975 L.M.C., ch. 13, § 1; 1975 L.M.C., ch. 16, § 1; 2010 L.M.C., ch. 14, § 1; 2010 L.M.C., ch. 48, § 1.)
(a) For any County borrowing authorized bylaw on the full faith and credit of the County to finance the public facilities defined in Section 20-14, the County must evidence that borrowing or indebtedness by issuing general obligation serial maturity bonds. Subject to the terms and conditions in this Section, the County Executive must determine the terms and conditions of any such bonds, the interest payable thereon, and the advertising for their sale.
(c) General obligation serial maturity bonds may be used to fund a project that is not a public facility as defined in Section 20-14 if the Council finds that:
(1) the facility for which the bonds would be used is an integral part of a facility that would qualify for bonds under this Article;
(2) the facility is necessary to serve a public purpose; and
(3) the recipient of bond funds agrees:
(A) not to sell, lease, exchange, give away, or otherwise transfer or dispose of any interest in the property that was acquired, constructed, extended, improved, enlarged, altered, repaired, or modernized with bond funds without County approval for 20 years; and
(B) if the County permits the transfer or disposition of the property, to repay the County the percentage of the proceeds allocable to the bond funds used to acquire, construct, extend, improve, enlarge, alter, repair, or modernize the property.
(d) Any action taken under this Article must be by order of the County Executive. The County Executive must send a correct copy of every such order to the Clerk of the County Council, who must keep a permanent record of each order. Certification by the Clerk is evidence of the authenticity of each order. (Mont. Co. Code 1965, § 2-112; 1971 L.M.C., ch. 23, § 2; 1998 L.M.C., ch 24, § 1; 2010 L.M.C., ch. 48, § 1.)
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