Md. Code, Local Government § 19–207

(a) This section applies only to the following governmental entities:

(1) a county;

(2) a municipality;

(3) a public corporation of the State;

(4) a sanitary commission or district, but not including the

Washington Suburban Sanitary Commission; and

(5) a unit, public corporation, or other instrumentality of a county or

municipality.

(b) (1) Subject to the limitations in this section, a governmental entity

authorized to issue bonds may issue new bonds to refund its outstanding bonds.

(2) A single county, bicounty, or multicounty agency or

instrumentality may not issue refunding bonds without the prior approval of the

governing body of each county involved.

(c) (1) The power to issue bonds under this section is in addition to any

other power to borrow.

(2) If bonds to be refunded are secured as unconditional general

obligations with a pledge of the full faith and credit and unlimited taxing power of

the governmental entity, the governmental entity may secure an issue of refunding

bonds as unconditional general obligations with a pledge of the full faith and credit

and unlimited taxing power of the governmental entity in the same manner and, with

respect to the application of any public general and public local law and otherwise,

with the same force and effect as the original pledge.

(d) A governmental entity may issue bonds under this section only for the

public purpose of:

(1) realizing for the governmental entity a savings in the total cost of

debt service on a direct comparison or present value basis;

(2) debt restructuring that reduces the total cost of debt service; or

(3) debt restructuring that the governmental entity determines:

(i) is in its best interests;

(ii) is consistent with its long–term financial plan; and

(iii) realizes a financial objective of the governmental entity,

including improvement of the relationship of debt service to any source of payment

such as taxes, assessments, or other charges.

(e) A governmental entity may:

(1) provide that bonds under this section be in one or more series;

and

(2) vary the amount of the series.

(f) (1) The total principal amount of the bonds issued under this section

may exceed the total principal amount of the bonds that are being refunded.

(2) To determine whether the bonds under this section are within any

limit on debt that applies to the governmental entity:

(i) the amount of the bonds that are being refunded shall be

subtracted from its total outstanding debt; and

(ii) the amount of the bonds issued under this section shall be

added to the difference.

(g) (1) Except as provided in paragraphs (2) and (3) of this subsection, a

governmental entity shall issue bonds under this section in accordance with the

procedures that applied to issuance of the bonds that are being refunded.

(2) If, at a public meeting, the governmental entity determines that

it would be in the public interest, the governmental entity may sell bonds issued

under this section at a private sale, without soliciting bids.

(3) Baltimore City may issue bonds to the extent authorized by the

Maryland Constitution, to refund obligations previously issued in accordance with

the procedures set forth in Article XI, § 7 of the Maryland Constitution without

repeating or further complying with those procedures in the issuance of the refunding

bonds.

(h) Bonds that are being refunded and that are subject to redemption before

their stated dates of maturity may be called for redemption:

(1) on the earliest redemption date; or

(2) at a later date that the governmental entity determines.

(i) (1) A governmental entity shall invest and apply proceeds of a sale of

bonds issued under this section to ensure that the principal and redemption premium

of, and interest on, the bonds that are being refunded will be paid in full when due.

(2) The governmental entity may deposit any part of the proceeds of

the sale of bonds issued under this section in a trust fund with a trust company or

other banking institution, in the name of the governmental entity.

(3) The trustee may invest and reinvest money in the trust fund in:

(i) obligations of the United States;

(ii) obligations guaranteed by the United States;

(iii) certificates of deposit or time deposits secured by an

obligation of the United States; or

(iv) certificates of deposit or time deposits secured by an

obligation guaranteed by the United States.

(4) Interest, income, and profits on the investment may be:

(i) considered to be revenue of a revenue project; and

(ii) applied in any lawful manner, including to the payment of:

1. the bonds that are being refunded; and

2. the bonds issued under this section.

(5) The trustee shall make money in the trust fund available, as the

governmental entity requires, for the payment of:

(i) the principal and redemption premium of, and interest on,

the bonds that are being refunded;

(ii) the principal and redemption premium of, and interest on,

the bonds issued under this section; or

(iii) any other related costs.

(j) All or any part of the bonds issued under this section may be made

payable from and secured by:

(1) money in the trust fund; or

(2) other money or security that the governmental entity provides.