Md. Code, Local Government § 19–308

(a) Except as provided in subsection (b) of this section, each bond or tax

anticipation note issued in accordance with the charter of the municipality or this

subtitle is a pledge of the full faith and credit of the municipality to the prompt

payment, from the revenues described in the resolution or ordinance, of the principal

of and interest on the bond or tax anticipation note when due.

(b) A revenue bond issued in accordance with the charter of the

municipality is not a debt of the municipality to which its faith and credit or taxing

power is pledged.

(c) (1) If at the time bonds are issued there is no charter or statutory

limit on the power of the municipality to impose property taxes, the pledge under

subsection (a) of this section is a covenant by the municipality to impose ad valorem

taxes:

(i) on all real and tangible personal property in the

municipality that is subject to assessment for unlimited municipal taxation; and

(ii) at a rate and in an amount sufficient to pay the principal

of and the interest on the bonds in each year in which any of the bonds are

outstanding.

(2) If at the time bonds are issued there is a charter or statutory limit

on the power of the municipality to impose property taxes, the pledge under

subsection (a) of this section is a covenant by the municipality to impose ad valorem

taxes described in paragraph (1) of this subsection within the limits imposed by law.

(d) A charter provision or a statute that establishes a maximum limit on

the rate at which a municipality may impose property taxes, or that removes an

existing limit, enacted after bonds are issued by the municipality does not affect the

covenants of the municipality under subsection (c) of this section with respect to

bonds outstanding on the effective date of the charter provision or statute.

(e) (1) A municipality may not issue a bond under the charter of the

municipality or this subtitle if, by its issuance, the maximum limits on the power of

the municipality to incur debt imposed by charter or statute will be exceeded.

(2) A maximum limit imposed after a bond is issued does not affect

the municipality’s obligation on the bond.

(3) The obligation of a municipality on an outstanding bond is not

affected by the issuance of a bond in accordance with an increase in the maximum

limit on the power of the municipality to incur debt, or the removal of an existing

maximum limit, enacted after the outstanding bond is issued.

(f) (1) In addition to the pledge of its full faith and credit and taxing

power to pay the principal of and interest on bonds, a municipality may secure the

payment by the pledge of any other revenues, including:

(i) payments to the municipality from the State or federal

government; and

(ii) special benefit assessments, taxes, fees, or service charges.

(2) To the extent that the additional revenues are sufficient in any

year to pay the principal of and interest on the bonds to which they are pledged, the

municipality is not obligated in that year to impose property taxes also pledged to

pay the bonds.

(3) If the additional revenues are sufficient in any year to pay the

principal of and interest on the bonds to which they are pledged, the failure of the

municipality to impose property taxes in that year is not in breach of any of the

municipal covenants described in subsection (c) of this section.