{"data":{"id":"us-md/md.-code-local-government-19-303","jurisdiction":"us-md","citation":"Md. Code, Local Government § 19–303","heading":"","body":"(a) The issuance of all bonds of a municipality shall be authorized by a\nresolution adopted or an ordinance enacted by the legislative body of the\nmunicipality.\n(b) (1) A resolution or an ordinance authorizing municipal bonds shall\ncontain:\n(i) a statement of the public purpose for which the bond\nproceeds are to be spent;\n(ii) the form of the bonds, including:\n1. the place at which the bonds will be payable;\n2. the time at which the bonds will be payable;\n3. the interest rate on the bonds or a space to insert the\ninterest rate when determined;\n4. the title of each official whose signature must be\naffixed to or imprinted on the bonds;\n5. the authority for issuance of the bonds; and\n6. the revenues from which the principal of and\ninterest on the bonds will be payable;\n(iii) specific provision for the appropriation and disposal of the\nbond proceeds;\n(iv) specific provision for the payment of the principal of and\ninterest on the bonds, including the source of payment; and\n(v) the form of the notice soliciting bids for the purchase of the\nbonds, including:\n1. the date, place, and time for receiving and opening\nbids;\n2. a brief description of the purpose for which the bonds\nwill be issued;\n3. a brief description of the denominations, maturities,\nterms, and conditions of the bonds;\n4. a statement of the interest rate of the bonds or the\nmanner of determining the rate;\n5. a precise statement of the manner in which the best\noffer for the bonds will be determined; and\n6. a reference to the resolution or ordinance\nauthorizing the bonds.\n(2) The provision made for payment of the bonds under paragraph\n(1)(iv) of this subsection is a covenant binding the municipality to provide money from\nthe source described to pay the principal of and interest on the bonds when due.\n(c) (1) A resolution or an ordinance authorizing any municipal bonds\nmay contain any other provision not inconsistent with this subtitle that the\nlegislative body of the municipality considers appropriate, including a provision that:\n(i) the principal of and interest on the bonds shall be payable\nat one or more banks or trust companies in or outside the State;\n(ii) except for the signature of the clerk or secretary which\nmust be manually affixed, the signatures of officials of the municipality and official\nseals to be affixed to the bonds or any coupons attached to the bonds shall be\nimprinted on the bonds or coupons in facsimile;\n(iii) at the option of the municipality, some or all of the bonds\nshall be made redeemable before maturity, at or above par value as required in the\nenabling resolution or ordinance if:\n1. the bonds contain a statement of the redemption\nprovisions; and\n2. the enabling resolution or ordinance provides for\npublished notice before a redemption;\n(iv) the issue of bonds shall be in varying denominations and\nin coupon form registrable as to principal only, in fully registered form, or both forms\nif they are interchangeable; and\n(v) a bond is a valid and binding obligation of the municipality\nin accordance with the terms of the bond even if an official whose signature appears\non the bond:\n1. ceases to be an official before the delivery of the\nbond; or\n2. becomes an official after the date of issue of the bond.\n(2) Each resolution or ordinance may authorize the executive of the\nmunicipality to modify the forms adopted by the resolution or ordinance if the\nmodifications do not alter the substance of the forms.\n(d) (1) The notice soliciting bids for the purchase of the bonds may:\n(i) require prospective purchasers to submit bids on specified\nforms;\n(ii) require prospective purchasers to accompany their bids\nwith good faith deposits in specified amounts;\n(iii) provide for approval of the legality of the bonds; and\n(iv) contain a financial statement of the municipality.\n(2) The provisions in paragraph (1) of this subsection may be\nincluded in the notice of sale or separately set forth in a circular or an official\nstatement, the form of which must be adopted by a resolution or an ordinance of the\nmunicipality.\n(e) Unless the resolution, ordinance, or municipal charter requires a\nreferendum, neither a resolution or an ordinance authorizing any bonds of a\nmunicipality nor the question of the issuance of the bonds need be submitted to\nreferendum of the voters of the municipality.","path":["Article - Local Government"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=glg\u0026section=19-303","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:58Z","sha256":"1a0da8054ef655a33b27335f48369d4b466700de79d506ab6ec5012dbf1723c1","source_id":"us-md","stale":false,"prev":"us-md/md.-code-local-government-19-302","next":"us-md/md.-code-local-government-19-304"},"notice":"GroundRules: Original legal text. Not legal advice."}