{"data":{"id":"us-md/md.-code-local-government-1-1420","jurisdiction":"us-md","citation":"Md. Code, Local Government § 1–1420","heading":"","body":"(a) (1) An authority may:\n(i) issue bonds to pay the cost of acquiring or improving\nproperty;\n(ii) fund or refund the bonds;\n(iii) purchase bonds with any funds available; and\n(iv) hold, pledge, cancel, or resell bonds.\n(2) By resolution, an authority may authorize the chair, one of the\nauthority’s members, or a committee of the members to determine or provide for any\nmatter relating to bonds that the authority considers appropriate, including:\n(i) specifying, determining, requiring, and approving matters,\ndocuments, and procedures that relate to the authorization, sale, security, issuance,\ndelivery, and payment of and for the bonds;\n(ii) creating security for the bonds; and\n(iii) providing for the administration of bond issues.\n(3) The power granted in paragraph (2) of this subsection is in\naddition to powers conferred on the authority by this subtitle and does not limit any\npower of the authority under this subtitle.\n(4) Within the limits that the authority sets, the authority may\nauthorize the executive director to take any of the actions described in paragraph (2)\nof this subsection.\n(b) An authority may issue the bonds at one time or in one or more series.\n(c) For each issue of an authority’s bonds, the authority shall pass a\nresolution that:\n(1) specifies and describes the project for which the proceeds of the\nbond issuance are intended;\n(2) generally describes the public purpose and the financing\ntransaction to be accomplished;\n(3) specifies the maximum principal amount of the bonds that may\nbe issued by the authority; and\n(4) imposes any terms or conditions on the issuance and sale of the\nbonds that the authority considers appropriate.\n(d) Subject to any provision for their registration, bonds are negotiable\ninstruments for all purposes regardless of whether they are payable from a special\nfund.\n(e) (1) The bonds may be serial bonds, term bonds, or both.\n(2) Subject to any delegation under subsection (a)(2) of this section,\nthe resolution authorizing bonds may provide:\n(i) the dates of the bonds;\n(ii) the maturity dates of the bonds;\n(iii) the interest rates on the bonds;\n(iv) the time at which the bonds will be payable;\n(v) the denominations of the bonds;\n(vi) whether the bonds will be in coupon or registered form;\n(vii) any registration privileges of the bonds;\n(viii) the manner of execution of the bonds;\n(ix) the place at which the bonds will be payable; and\n(x) any terms of redemption of the bonds.\n(3) The bonds shall mature within a period not to exceed 50 years\nafter the date of issue.\n(4) The bonds shall be payable in United States currency.\n(f) An authority shall sell the bonds at competitive or negotiated sale in a\nmanner and for a price the authority determines to be in the authority’s best\ninterests.\n(g) An officer’s signature or facsimile on a bond remains valid if the officer\nleaves office before the bond is delivered.\n(h) Pending preparation of the definitive bonds, an authority may issue\ninterim receipts or certificates that will be exchanged for definitive bonds.\n(i) A trust agreement authorizing bonds may contain provisions that are\npart of the contract with the bondholders, including:\n(1) the rates, rentals, fees, and other charges, the amounts to be\nraised in each year, and the use and disposition of the revenues;\n(2) the setting aside of reserves and sinking funds and their\ndisposition;\n(3) limits on the right of the authority or the authority’s agents to\nrestrict and regulate the use of a project;\n(4) limits on the purpose to which the proceeds of the sale of bonds\nmay be applied;\n(5) limits on issuing additional bonds and refunding bonds and the\nterms under which additional bonds may be issued and secured;\n(6) the procedure to amend or abrogate the terms of a contract with\nbondholders and the requirements for consent;\n(7) limits on the amount of project revenues to be expended for\noperating, administrative, or other expenses of the authority;\n(8) the acts or omissions that constitute default by the authority and\nthe rights and remedies of the bondholders in a default;\n(9) the conveyance or mortgaging of a project and its site to secure\nthe bondholders;\n(10) creation and disposition of a collateral fund to secure the\nbondholders; and\n(11) pledging the following to secure payment of bonds, subject to any\nexisting agreements with bondholders:\n(i) the full faith and credit of an authority;\n(ii) revenues of a project;\n(iii) a revenue–producing contract the authority has made with\na person or public entity; or\n(iv) the proceeds of the sale of bonds.\n(j) The members of an authority and a person executing the bonds may not\nbe held liable personally on the bonds.","path":["Article - Local Government"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=glg\u0026section=1-1420","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:58Z","sha256":"e0e9affc26b6c23beb9514ed4210fbec886f9dc131d9f15a3a95efa853b9291a","source_id":"us-md","stale":false,"prev":"us-md/md.-code-local-government-1-1419","next":"us-md/md.-code-local-government-1-1421"},"notice":"GroundRules: Original legal text. Not legal advice."}