{"data":{"id":"us-md/md.-code-local-government-19-509","jurisdiction":"us-md","citation":"Md. Code, Local Government § 19–509","heading":"","body":"(a) Except as provided in subsection (b) of this section, each bond issued in\naccordance with this subtitle is a pledge of the full faith and credit of the county to\nthe prompt payment, from the revenues described in the public local law authorizing\nthe bond, of the principal of and interest on the bond when due.\n(b) A revenue bond issued in accordance with this subtitle is not a debt of\nthe county to which its faith and credit or taxing power is pledged.\n(c) (1) If at the time bonds are issued there is no statutory limit on the\npower of the county to impose property taxes, the pledge under subsection (a) of this\nsection is a covenant by the county to impose ad valorem taxes:\n(i) on all real and tangible personal property in the county\nthat is subject to assessment for unlimited county taxation; and\n(ii) at a rate and in an amount sufficient to pay the principal\nof and the interest on the bonds in each year in which any of the bonds are\noutstanding.\n(2) If at the time bonds are issued there is a statutory limit on the\npower of the county to impose property taxes, the pledge under subsection (a) of this\nsection is a covenant by the county to impose the ad valorem taxes described in\nparagraph (1) of this subsection within the limits imposed by law.\n(d) A statute that establishes a maximum limit on the rate at which a\ncounty may impose property taxes, or that removes an existing limit, enacted after\nbonds are issued by the county does not affect the covenants of the county under\nsubsection (c) of this section with respect to bonds outstanding on the effective date\nof the statute.\n(e) (1) A county may not issue a bond under this subtitle if, by its\nissuance, a statutory maximum limit imposed by statute on the power of the county\nto incur debt will be exceeded.\n(2) A statutory maximum limit imposed after a bond is issued does\nnot affect the county’s obligation on the bond.\n(3) The obligation of a county on an outstanding bond is not affected\nby the issuance of a bond in accordance with an increase in the statutory maximum\nlimit on the power of the county to incur debt, or the removal of an existing maximum\nlimit, enacted after the outstanding bond is issued.\n(f) (1) In addition to the pledge of its full faith and credit and taxing\npower to pay the principal of and interest on bonds, a county may secure the payment\nby the pledge of any other revenues, including:\n(i) payments to the county from the State or federal\ngovernment; and\n(ii) special benefit assessments, taxes, fees, or service charges.\n(2) To the extent that the additional revenues are sufficient in any\nyear to pay the principal of and interest on the bonds to which they are pledged, the\ncounty is not obligated in that year to impose property taxes also pledged to pay the\nbonds.\n(3) If the additional revenues are sufficient in any year to pay the\nprincipal of and interest on the bonds to which they are pledged, the failure of the\ncounty to impose property taxes pledged to pay the bonds in that year is not a breach\nof any payment of the principal of and interest on the bonds.","path":["Article - Local Government"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=glg\u0026section=19-509","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:58Z","sha256":"ca536376e95b8c01ab73e2cb3ec5e28feb4ff05d9f9ecb5208a927a8103d3864","source_id":"us-md","stale":false,"prev":"us-md/md.-code-local-government-19-508","next":"us-md/md.-code-local-government-19-510"},"notice":"GroundRules: Original legal text. Not legal advice."}