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Upon issuance, the proceeds of certificates of indebtedness must be set aside from other county funds and used and applied only for payment of the costs of reconstructing, replacing, repairing, or paying insurable losses as defined in this article and the cost of printing and delivering and other expenses of issuance of the certificates of indebtedness, and any other incidental expenses, and the reimbursement of the general tax receipts of the county or participating agency for any money previously expended therefrom to cover the cost of the insurable losses. Any balance of the proceeds, together with any part of the sum so set aside which is not required for payment of the cost of the insurable losses, must be promptly applied to the payment of the certificates of indebtedness as they become due. (Mont. Co. Code 1965, § 5-6; 1978 L.M.C., ch. 36, § 1; 1986 L.M.C., ch. 44, § 1.)
All certificates of indebtedness are and shall be issued upon the full faith and credit of the county, which is hereby pledged to the punctual payment of the principal thereof and interest thereon, and they shall be payable from unlimited ad valorem taxes levied upon all assessable property within the corporate limits of the county and the resolution of the council authorizing the issuance of such certificates shall so provide. In each and every fiscal year that any such certificates are or will be outstanding, the county and the council shall levy or cause to be levied ad valorem taxes upon all the assessable property within the corporate limits of the county in rate and amount sufficient to provide for the payment, when due, of the interest and principal of all such certificates becoming due in such fiscal year. In the event the proceeds from the taxes levied in any such fiscal year shall prove inadequate for such payment, additional taxes shall be levied in the succeeding fiscal year to make up any such deficiency. (Mont. Co. Code 1965, § 5-8; 1978 L.M.C., ch. 36, § 1.)
All certificates of indebtedness shall have, and are hereby declared to have, as between successive holders, all the qualities and incidents of negotiable instruments under the negotiable instruments law of the state, to the extent provided in section 10 of article 31 of the Annotated Code of Maryland, 1957, as amended. (Mont. Co. Code 1965, § 5-9; 1978 L.M.C., ch. 36, § 1.)
Editor’s note—See County Attorney Opinion dated 6/3/08 discussing public purpose funds and non-public purpose fund.
No certificates of indebtedness shall be issued to the extent that the principal amount thereof, together with the principal amount of all bonds, certificates of indebtedness, notes or other obligations theretofore issued by the county and then outstanding which affect the debt limit of the county, shall exceed ten (10) percent upon the assessable basis of the county at the time of issuance of such certificates of indebtedness. (Mont. Co. code 1965, § 5-10; 1978 L.M.C., ch. 36, § 1.)
Editor’s note—See County Attorney Opinion dated 11/25/02 discussing the details of the lease-leaseback of a new dispensary facility discussed and determined to be permitted by law.
(a) Under the authority of Title 16 of the Housing and Community Development Article of the Maryland Code, Montgomery County, may, at any time and from time to time, guarantee, upon its full faith and credit, revenue bonds of the housing opportunities commission in a total amount not exceeding $50,000,000 to finance the acquisition, provision, development, or rehabilitation of housing at rental rates and prices not being offered in adequate quantity by the private sector, or to finance in whole or in part mortgage loans secured by such housing, and to fund related reserves and costs approved under Title 16 of the Housing and Community Development Article of the Maryland Code and this Chapter.
(b) Each mortgage loan so financed in part must be insured in part by the Federal Housing Administration, the Maryland Housing Fund, or a private mortgage insurer which is approved by either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation and is authorized to do business in Maryland, or by any combination of such insurers.
(c) The Housing Opportunities Commission must comply with any terms and conditions imposed by the County in providing the guarantee of any bonds. If guaranteed revenue bonds will finance the total cost of such housing or the total amount of the mortgage loans for such housing, the Commission must also comply with any requirements imposed by the County after the bonds are issued to assure or protect the financial solvency of the project.
(d) The issuance of such bonds must be subject to review and approval by the County as hereinafter provided. (1978 L.M.C., ch. 36, § 2; 1983 L.M.C., ch. 32, § 1; 1988 L.M.C., ch. 28, § 1; 2010 L.M.C., ch. 49, § 1; 2013 L.M.C., ch. 4, § 1.)
(a) Upon determination by the housing opportunities commission of the county to issue bonds under the authority of article 44A, Annotated Code of Maryland and this chapter, the housing opportunities commission shall provide the county executive and the county council simultaneously with information concerning the proposed bonds and the housing projects to be benefited by the funds from the sale of such bonds, including, but not limited to, the following:
(1) Terms and conditions of the bonds;
(2) Estimated bond interest rate, and the basis for the estimate;
(3) Estimated timing and other provisions concerning the advertising and sale of the bonds;
(4) Description of the proposed project with detailed estimates of construction and related costs to bring it to the point of readiness to rent or sell;
(5) Detailed estimates of operating cost and debt service;
(6) Schedules of reserves for depreciation and major maintenance;
(7) Rent schedule showing how, after allowance for vacancies, the revenues are expected to cover operating cost, debt service and capital cost, and reserves for depreciation and major maintenance;
(8) Separate schedule showing the cost, benefit and effect on rent schedules of additional safeguards to assure solvency of the project. These schedules would address such devices as mortgage insurance and debt service reserves, and would reflect the housing opportunities commission’s recommendation of whether or not to use the devices and the reasons therefor;
(9) Description of the terms and conditions for construction of the project, including any safeguards against construction default and the conditions under which construction financing is to be provided by the housing opportunities commission;
(10) Description of the accounting system for recording and controlling expenditures of bond funds, debt service, operating cost, reserves and revenues;
(11) Explanation of the use of any reserves relating to bonds issued for the benefit of the project;
(12) Explanation of the potential obligations of the county arising from a default with respect to any bonds issued for the benefit of the project; and
(13) Any additional information which the county executive or county council may request from the housing opportunities commission within ten (10) days of receipt of all of the foregoing information.
(b) After consultation with the housing opportunities commission, the county executive may defer the requirement for furnishing any of the foregoing information if the county executive determines that such a deferral will avoid delays which would adversely affect the timing of the financing for the proposed project. In any event, all of such information shall be furnished to the county executive and the county council at or prior to the public hearing hereinafter required.
(c) The county executive shall consider and comment on the feasibility of the proposed bond guarantee and each housing project contemplated by the proposed bond guarantee and shall recommend to the county council whether the proposed bond guarantee should be approved, including any terms and conditions which he or she may deem advisable for approval. The county executive’s recommendations shall include a statement that the proposed project is fully self-supporting. The county executive’s recommendations shall be supported by an independent feasibility study or studies furnished by the housing opportunities commission. The furnishing of the independent feasibility study or studies may be waived by the county executive in the case of projects financed, insured, or assisted by the state or federal government. The county executive’s recommendations shall be made not later than the public hearing concerning a proposed bond guarantee. (1978 L.M.C., ch. 36, § 2; 1983 L.M.C., ch. 32, § 1.)
Within forty-five (45) days from the date of the county council’s receipt of all of the information required to be furnished in connection with a proposed bond guarantee or from the date of deferral of a portion of such information by the county executive, whichever first occurs, the county council shall hold a public hearing. The public hearing shall be held after not less than fifteen (15) days’ notice by publication in a newspaper having general circulation in the county, giving the time, place and date of the hearing to afford an opportunity for the public to review the projects proposed to be benefited by the bond guarantee. After considering the recommendations of the county executive and after the public hearing, the county council shall approve, approve with modifications, or disapprove, the proposed bond guarantee, and shall by resolution specify such terms and conditions as it shall deem advisable for an approved bond guarantee. The terms and conditions shall include the maximum interest payable, the terms of the bond issue, the purposes for which the bond funds may be expended, and the method for controlling the expenditures of the bond funds and the revenues and expenditures for projects financed by the bond funds. (1978 L.M.C., ch. 36, § 2; 1983 L.M.C., ch. 32, § 1.)
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