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(a) Six-year programs.
(1) Before October 1 each odd-numbered calendar year, the Authority must prepare and submit a six-year capital improvements program to the Executive. The capital improvements program must include:
(A) a statement of the objectives of the capital program and relationship of the program to the County's adopted long range development plans;
(B) recommended capital projects and a construction schedule; and
(C) an estimate of cost and a statement of all funding sources.
(2) The capital improvements program must include all capital projects and programs of the Authority, including substantial improvements and extensions of projects previously authorized. Except as otherwise authorized under this Chapter, an improvement or extension of any existing project must not be undertaken unless approved in the capital improvements program.
(3) The Executive must include the Authority's six-year program, with any recommended revisions and modifications, in the comprehensive six-year program submitted to the Council under Section 302 of the County Charter.
(4) The Council must adopt a six-year capital improvements program for the Authority as a part of the County's comprehensive six-year program. The Council may amend the program. Any amendment must not become final until it is submitted to the Authority for written comment on at least 30 days notice.
(5) The capital budget of the Authority for the succeeding fiscal year includes projects in the first year of the six-year capital program. A capital project must not be undertaken unless it is approved in the capital program or otherwise authorized under this Chapter.
(b) Notice of proposed project; rejection by Executive.
(1) Before a project starts, the Authority must advise the Executive in writing of its intention to begin the project, outlining the nature and the estimated cost of the project.
(2) The Executive must notify the Authority of any rejection of the project, including reasons for the rejection. The Executive's notice of rejection must be in writing and delivered to the Authority within 60 days after the Executive receives notice of the project from the Authority.
(3) If the Executive rejects the project, the Authority must not proceed with construction or operation of the project, nor issue any bonds for the project.
(4) If the Executive approves the project, or does not reject the project within 60 days after the Authority's notice, the Authority may proceed with construction or operation of the project.
(c) Threshold. Notwithstanding other requirements of this Section, the Authority may make an improvement to an existing project without inclusion in the six-year capital improvements program or approval of the Executive if the cost of the improvement does not exceed $50,000. (1992 L.M.C., ch. 35, § 2; 1998 L.M.C., ch. 33, § 1.)
Unless otherwise provided by law, plans and specifications for Authority projects for use by the County must be approved by the Executive or designee before the Authority may proceed with any procurement for construction or operation of the project. (1992 L.M.C., ch. 35, § 2.)
(a) The Executive may:
(1) convey to the Authority title to any lands, streets, alleys, buildings, facilities, or other public places, on payment to the County of the reasonable value of the properties as determined by the Authority and the Executive, with the approval of the Council. Payment may be in cash or in bonds of the Authority at par value; and
(2) assign to the Authority any rates, rents, fees, or charges owed to the County to provide additional security for any revenue bonds or for other purposes the Authority and the County may agree.
(b) In addition to advances authorized by Section 42-19, the Council may advance County general funds to the Authority for expenses for investigations, engineering and architectural studies, opinions, and compensation of employees and counsel which may be incurred before the sale of its revenue bonds. These advances must be repaid out of the first proceeds of the sale of revenue bonds by the Authority after the advance. (1992 L.M.C., ch. 35, § 2.)
(a) The Authority may provide by resolution for the issuance of negotiable revenue bonds to pay all or part of the cost or purchase price of one or more projects. The resolution authorizing the issuance of revenue bonds, or the trust indenture, must state the estimated cost or purchase price of the project or projects involved. The revenue bonds must be issued in amounts stated in the resolution.
(b) The principal and interest of revenue bonds must be paid solely from the funds and revenues received by the Authority. No tax, excise or special assessment, except as authorized by this Chapter, may be levied to pay such principal and interest.
(c) The revenue bonds of each issue must be dated, must bear interest at a rate not exceeding the maximum legal rate per annum permitted by law, payable semi-annually, and must mature at such time or times, not exceeding 50 years from their date or dates, as determined by the Authority. The bonds of each issue may be made redeemable before maturity at the option of the Authority at such price or prices and under terms and conditions as may be fixed by the Authority before the issuance of the bonds. The Authority must determine the form of the bonds, including any interest coupons to be attached, and must fix the denomination or denominations of the bonds and the place or places of payment of principal and interest which may be at any bank or trust company within or outside the State. The payment of principal and interest of the bonds may be made in any lawful medium. The Authority must determine the manner of executing the bonds and the manner of executing any interest coupons attached. Execution of these instruments may be by facsimile signature of the chairperson or an authorized member of the Authority. The official seal of the Authority must be affixed to the bonds and they must be attested by the secretary of the Authority. If any officer whose signature appears on any bonds or coupons ceases to be an officer before the delivery of the bonds, the signature of that officer remains valid and sufficient for all purposes, as if that officer had remained in office until delivery.
(d) All revenue bonds issued under this Chapter are negotiable instruments under the negotiable instruments law of this State.
(e) The revenue bonds may be issued in coupon or in registered form, or both, as the Authority may determine. The Authority may provide for the:
(1) registration of any coupon revenue bonds for principal alone, or both principal and interest; and
(2) reconversion into coupon revenue bonds of any revenue bonds registered for both principal and interest.
(f) The Authority may sell revenue bonds in such manner, either at public or private sale, and for such price, as it determines in the best interests of the Authority. However, the sale must not be made at a price so low that requires the payment of interest on the money received at more than the maximum legal rate per annum permitted by law, computed with relation to the absolute maturity of the bonds under standard tables of bond values, excluding, however, from such computation, the amount of any premium to be paid on redemption of any revenue bonds before maturity.
(g) The provisions of Sections 9 to 11, inclusive, of Article 31 of the Annotated Code of Maryland, 1957, as amended, do not apply to the revenue bonds issued by the Authority.
(h) The proceeds of the revenue bonds of each issue must be used solely for the payment of the cost of the project or projects for which the bonds have been issued. The proceeds must be distributed in the same manner and under the restrictions, if any, stated in the resolution of the Authority authorizing the issuance of the bonds, or in any trust agreement securing the bonds. If the proceeds of the bonds of any issue are less than the cost of a project or projects, additional bonds may be issued in the same manner to fund the amount of the deficit. Unless otherwise provided in the resolution authorizing the issuance of the bonds, or in the trust agreement securing the bonds, these additional bonds are considered to be of the same issue and are entitled to payment from the same funds, without preference or priority of the bonds first issued. If the proceeds of the bond of any issue exceed the cost of the project or projects for which the bond is issued, the surplus must be deposited into the sinking fund provided under this Chapter for the payment of principal of and interest on the revenue bonds.
(i) Before definitive revenue bonds are prepared, the Authority may, under similar restrictions, issue interim receipts or temporary bonds, with or without coupons, to be exchanged for definitive bonds when the bonds are executed and are available for delivery. The Authority may also provide, by resolution, for the replacement of any bonds which are mutilated, destroyed, or lost.
(j) The revenue bonds of the Authority may be issued without an election referendum or any other proceedings or the occurrence of any other conditions or events; only those proceedings, conditions or events which are specified and required by this Chapter apply to these bonds, and they are in all respects exempt from other provisions of the County Charter or County laws.
(k) The Authority may provide by resolution for the issuance of revenue refunding bonds to refund any revenue bonds then outstanding and issued under this Chapter. The issuance of revenue refunding bonds, including the maturities and other details, the rights of the holders, and the duties of the Authority, are controlled by this Chapter to the extent applicable.
(l) The Authority may provide by resolution for a single issue of its revenue bonds for the combined purposes of:
(1) paying the cost of any improvement, extension, enlargement, or reconstruction of any of its existing projects; and
(2) refunding its outstanding revenue bonds which may have been issued for the project if the bonds have matured, are subject to redemption, or can otherwise be acquired for retirement.
(m) Only fees, rents, tolls, charges, and revenues received from the use of the project or projects constructed from the proceeds of the bonds may be used or appropriated for the payment of interest or principal of such bonds; except that before and during construction and for one year after the completion of the construction of any project for which revenue bonds have been issued, the interest on the bonds may be paid out of the proceeds from the sale of the bonds. (1992 L.M.C., ch. 35, § 2.)
A resolution authorizing the issuance of any revenue bonds may contain provisions which are part of the contract with the holders of the bonds, and may include:
(a) a statement that the revenues received or to be received from the project or projects financed from the proceeds of any issue of revenue bonds can not be used to service any other revenue bonds issued to finance the cost of any other project;
(b) subject to the provisions of subsection (a), a pledge of the full faith and credit of the Authority (but not of the County or the State or any political subdivision) for such obligations;
(c) a statement describing the construction, improvement, operation, extension, enlargement, equipping, furnishing, maintenance, and repair of any project, and the duties of the Authority with respect to the project;
(d) the terms and provisions of the bonds;
(e) any limitations on the purposes to which the proceeds of the bonds then or thereafter to be issued, or of any loan or grant by the United States or the State, may be applied;
(f) a description of rate of tolls, rents and other charges for the use of the project or the facility of the Authority, or for the services rendered by the Authority, including limitations on the power of the Authority to modify any lease or other agreement under which any tolls, rents, or other charges are payable;
(g) the establishment of reserves or sinking funds, including the regulation and disposition of the funds;
(h) a description of any limitations on the issuance of additional bonds;
(i) the terms of any deed of trust or indenture securing the bonds or otherwise relating to the bonds; and
(j) a description of any other agreement with holders of the bonds. (1992 L.M.C., ch. 35, § 2.)
(a) All moneys received from any revenue bonds issued and sold must be applied solely for the purpose for which the bonds are authorized, or to the sinking fund established for the payment of the bonds. These moneys are trust funds for those purposes.
(b) There is a lien on such moneys in favor of the holders of any bonds or any trustee appointed with respect to the bonds, until the moneys are applied to the purposes for which the bonds are authorized or to the sinking fund for repayment of the bonds. (1992 L.M.C., ch. 35, § 2.)
(a) The revenue bonds issued by the Authority do not constitute a debt of the County or a pledge of the full faith and credit of the County or of the State or any political subdivision thereof, but such revenue bonds are payable from the funds of the Authority provided from revenues of the project or projects of the Authority. All such revenue bonds must contain a statement on their face to the effect that the full faith and credit of the County, State, or any political subdivision is not pledged to pay the bonds or the interest.
(b) The issuance of the revenue bonds must not directly, indirectly, or contingently obligate the County to levy or pledge any form of taxation, or to any appropriation for their payment.
(c) The Executive may, with the approval of the Council, collaterally agree to provide sufficient moneys from the general funds of the County to pay any deficiency in the debt service requirements of the bonds for any year in which there is a deficit. However, any advance must be repaid from the receipts, rents, or revenues of the Authority in the next succeeding year in which the receipts, rents, or revenues exceed debt service requirements and operating expenses. In addition, any advance under any agreement or agreements must not exceed a maximum payment by the County of $50,000 for any one year. (1992 L.M.C., ch. 35, § 2.)
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