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(a) For the purpose of financing and carrying out an urban renewal project and related activities, the county council is hereby granted the power and authority to do the following:
(b) Borrow money, etc. To borrow money and incur indebtedness and to evidence such borrowing or indebtedness by the issuance, at any time, and from time to time, its general obligation serial maturity bonds, upon the full faith and credit of Montgomery County, and the county is authorized to contribute and deliver in whole or in part the net cash proceeds of such bond issue, or issues, to a commission, board, or agency created and appointed to administer the provisions of this article.
(c) Levy taxes, etc. The county council is hereby authorized and directed in and for each and every fiscal year during which any of such bonds are outstanding, to levy and collect an ad valorem tax, upon all the assessable property in Montgomery County, in an amount sufficient to provide for the payment when due of the principal and interest in all such bonds becoming due in such fiscal year, and in the event the proceeds from the taxes so levied in any such fiscal year shall prove inadequate for the purposes cited in this article, additional taxes shall be levied in the succeeding fiscal year to make up any such deficiency. The bonds hereby authorized shall constitute and they shall so recite an irrevocable pledge of the full faith and credit and unlimited taxing power of the county to the payment of the maturing principal and interest of such bonds as [and] when the same respectively mature. The county may apply to the payment of principal and interest of any bonds issued under this article, any funds received from the State of Maryland, or United States of America or any agency or instrumentality thereof.
(d) Bonds to be negotiable instruments. All such bonds shall have, and are hereby declared to have, as between successive holders, all the qualities and incidents of negotiable instruments under the negotiable instruments laws of the state to the extent provided in section 8 of article 31, Annotated Code of Maryland, 1957, as amended.
(e) Bonds tax exempt. Any and all such bonds and the interest thereon and the income derived therefrom, in the hands of the holders thereof from time to time, shall be and are hereby declared to be exempt from state, county, city, and municipal taxation of every kind and nature whatsoever in the state.
(f) Bonds cumulative. All bonds issued under this article are additional and cumulative and the bonds authorized by this article may be issued notwithstanding that other bond acts may provide for the issuance of other bonds or the borrowing of money for the same or similar purposes on the same or other terms and conditions. (Mont. Co. Code 1965, § 26-7; 1961, ch. 821, § 1.)
Or, in the alternative, the county council for Montgomery County may issue revenue bonds which shall be fully negotiable and payable, as to both principal and interest, solely from, and secured solely by, a pledge of and lien upon either or both, of the following (a) or (b):
(a) Income. Any and all of the income, receipts, proceeds, revenues, and funds derived from, or available or to be made available for, any undertakings for the accomplishment of the purposes and object mentioned in or contemplated by this article.
(b) Contracts. Any contract, or right thereunder existing between the United States of America, or any department or agency thereof, and the county council of Montgomery County with respect to any undertaking for the accomplishment of the purposes and objects of this article.
Any and all of such bonds, notes or obligations, issued as revenue bonds, shall not be general obligations of Montgomery County and shall not be a pledge of or involve the full faith and credit or taxing power of Montgomery County, and shall not pledge, convey or mortgage any real property owned by Montgomery County, and shall not constitute a debt of Montgomery County, within the meaning of the constitution of Maryland, or within the meaning of any other constitutional, statutory, or charter provisions, limiting or restricting the sale or issuance of bonds, notes or other obligations of Montgomery County. (Mont. Co. Code 1965, § 26-8; 1961, ch. 821, § 1.)
Revenue bonds issued under the provisions of this article are declared to be issued for an essential public and governmental purpose and the principal and interest thereon, and income therefrom, shall be exempt from all taxes as provided in section 56-13. Such revenue bonds shall be made payable, as to both principal and interest, solely from the income, proceeds, revenues, and funds of Montgomery County derived from or held in connection with its undertaking and carrying out of urban renewal projects under this article; provided, however, that payment of such bonds, both as to principal and interest, may be further secured by a pledge of any loan, grant or contribution from the federal government or other source, in aid of any urban renewal projects of Montgomery County under this article, and by a mortgage on any such urban renewal projects or any part thereof, title to which is in Montgomery County. (Mont. Co. Code 1965, § 26-9; 1961, ch. 821, § 1.)
Both the revenue bonds and general obligation serial bonds issued under this section shall be authorized by resolution of the county council for Montgomery County and may be issued in one (1) or more series and shall bear the date or dates, be payable upon demand or mature at the time or times, bear interest at the rate or rates, be in the denomination or denominations, be in the form either with or without coupon or registered, carry on the conversion or registration privileges, have the rank or priority, be executed in the manner, be payable in the medium of payment, at the place or places, and be subject to the terms of redemption (with or without premium), be secured in the manner, and have the other characteristics, as may be provided by the resolution or trust indenture or mortgage issued pursuant to this section. These bonds are not subject to the provisions of sections 9, 10, and 11 of article 31, Annotated Code of Maryland, 1957, as amended. (Mont. Co. Code 1965, § 26-10; 1961, ch. 821, § 1; 1979, ch. 155, § 1.)
Both the revenue bonds and general obligation serial bonds may be sold at not less than par at public sales held after notice published prior to such sale in a newspaper having a general circulation in the county and in such other medium of publication as the council may determine, or may be exchanged for other bonds on the basis of par; provided, that such bonds may be sold to the federal government at private sale at not less than par, and, in the event less than all of the authorized principal amount of such bonds is sold to the federal government, the balance may be sold at private sale at not less than par at an interest cost to the county not to exceed the interest of the portion of the bonds sold to the federal government. (Mont. Co. Code 1965, § 26-11; 1961, ch. 821, § 1.)
In case any of the public officials of Montgomery County whose signatures appear on any bonds or coupons issued under this article shall cease to be such officials before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery. (Mont. Co. Code 1965, § 26-12; 1961, ch. 821, § 1.)
In any suit, action or proceeding involving the validity or enforceability of any bond issued under this article or the security therefor, any such bond reciting in substance that it has been issued by Montgomery County in connection with an urban renewal project, as herein defined, shall be conclusively deemed to have been issued for such purpose and such project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of this article. (Mont. Co. Code 1965, § 26-13; 1961, ch. 821, § 1.)
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