Md. Code, Local Government § 12–403

(a) The County Commissioners of Caroline County may:

(1) purchase or lease personal property under a multiyear contract

that requires the county commissioners to make installment or rental payments

during 2 or more fiscal years;

(2) pay interest as part of any installment or rental payments in

accordance with the terms of the contract; and

(3) pledge and assign the personal property purchased or leased to

secure the obligation.

(b) (1) The County Commissioners of Caroline County may enter into a

contract under subsection (a) of this section only if:

(i) the county commissioners have appropriated money

sufficient to pay the amount due under the contract during the first fiscal year in

which the contract is effective;

(ii) subject to paragraph (2) of this subsection, the contract

authorizes the county commissioners to terminate the contract if money sufficient to

pay the amount due under the contract for any fiscal year is not appropriated;

(iii) the contract provides that, except if the county

commissioners default in payment under the contract, an obligation for payment

under the contract is limited to money appropriated for contract payment for that

fiscal year; and

(iv) the contract provides that, if the county commissioners

default in payment under the contract, the obligation for payment is limited to:

1. money appropriated for contract payments for that

fiscal year;

2. any money realized from the personal property

purchased or leased under the contract; and

3. any other money legally available for contract

payment.

(2) The contract may provide that a contract termination is

ineffective if the county commissioners purchase or lease personal property similar

or functionally related to the property purchased or leased under the contract within

a specified period of time.