Md. Code, Local Government § 21–702

(a) (1) In this section the following words have the meanings indicated.

(2) “Bond” means a special obligation bond, note, or other similar

instrument issued by a county under this section.

(3) “Cost” means any expense necessary or incident to acquiring,

building, or financing any transportation improvement as may be provided by the

local law authorized under subsection (b) of this section.

(4) (i) “Special tax” means an ad valorem or a special tax, an

assessment, a fee, or a charge imposed by a county in a special taxing district.

(ii) “Special tax” does not include an ad valorem or a special

tax, an assessment, a fee, or a charge imposed under Chapter 20A of the Montgomery

County Code.

(5) (i) “Special taxing district” means a special taxing district,

special assessment district, or similar defined geographical area in a county in which

the county is authorized to impose a special tax.

(ii) “Special taxing district” does not include a development

district created under Chapter 20A of the Montgomery County Code.

(6) “Transportation improvement” means a State transportation

improvement or a county transportation improvement as defined in § 21–701 of this

subtitle.

(b) Notwithstanding any other public general law, public local law, or

charter of a charter county, a county may enact a law to provide for the issuance of

bonds to finance the cost of transportation improvements for which the principal,

interest, and any premium shall be paid from and secured by special taxes collected

by the county in a special taxing district.

(c) (1) Bonds issued under this section are special obligations of the

county and do not constitute a general obligation debt of the county or a pledge of the

county’s full faith and credit or general taxing power.

(2) Bonds issued under this section may be sold in any manner, either

at public or private sale, and on terms as the county considers best.

(3) Bonds issued under this section are not subject to §§ 19–205 and

19–206 of this article.

(4) Bonds issued under this section, their transfer, the interest

payable on them, and any income derived from them, including any profit realized on

their sale or exchange, are exempt from taxation by the State, a county, or a

municipality.

(5) Bonds issued under this section shall be treated as securities to

the same extent as bonds issued under Subtitle 5 of this title.

(d) In addition to the special taxes, bonds issued under this section may be

secured by other revenues generated in the special taxing district.

(e) This section, being necessary for the welfare of the State and its

residents, shall be liberally construed to effect its purposes.