{"data":{"id":"us-md/md.-code-local-government-26-803","jurisdiction":"us-md","citation":"Md. Code, Local Government § 26–803","heading":"","body":"(a) As an alternative to raising funds as provided in § 26–802 of this\nsubtitle, the board of managers may issue and sell bonds or notes as provided in this\nsection for an amount not exceeding the total cost of the drainage project.\n(b) (1) The board of managers shall give notice of a proposal to issue\nbonds or notes by:\n(i) publication at least once a week for at least 3 weeks in a\nnewspaper of general circulation in the county in which any of the area of the\ndrainage association is located;\n(ii) posting a notice at the door of the courthouse in the county\nin which any of the area of the drainage association is located; and\n(iii) posting a notice at five conspicuous places in the area or\nvicinity of the area of the drainage association.\n(2) The notice shall provide:\n(i) the proposal to issue bonds or notes to pay for the cost of\nthe drainage project;\n(ii) the amount of bonds or notes to be issued;\n(iii) the interest rate for the bonds or notes or the method of\ndetermining the interest; and\n(iv) the date when the bonds or notes are payable.\n(c) (1) Within 15 days after the publication or posting of the notice in\nsubsection (b) of this section, a landowner may pay to the county tax collector the full\namount for which the landowner is liable, as provided in the report of the board of\nviewers.\n(2) If a landowner pays the full amount as provided in paragraph (1)\nof this subsection, the landowner is relieved from further liability for the particular\ndrainage project.\n(3) Before issuing any bonds or notes under this section, the board of\nmanagers shall deduct from the estimated amount of bonds or notes to be issued the\namount paid in advance by a landowner and shall issue bonds or notes only in the\ndecreased amount.\n(4) Any amount paid in advance to the county tax collector shall be\nheld in a separate fund to be added to the proceeds of the bonds or notes issued and\nto be spent to implement the plan of drainage projects.\n(d) The board of managers shall:\n(1) certify to the county commissioners or county council the amount\nof bonds or notes to be issued; and\n(2) submit an assessment list of all properties for which payments\nhave not been made, showing for each landowner the full amount due, less interest,\nwith the total amount for all landowners equaling the certified amount.\n(e) (1) After the assessment list has been submitted as provided in\nsubsection (d) of this section, the board of managers shall issue bonds or notes in the\ncertified amount.\n(2) All bonds or notes issued under this section:\n(i) shall be sold under the serial maturity plan;\n(ii) shall have a maturity date of 12 years or less from the date\nof issue;\n(iii) may not be sold for a price less than par; and\n(iv) may be sold at a public or private sale.\n(3) Subject to paragraph (2) of this subsection, the board of managers\nmay provide for the form, date, interest rate, and other details incident to the offering,\nsale, execution, and delivery of the bonds.\n(4) Bonds issued under this section are exempt from §§ 19–205 and\n19–206 of this article.\n(f) (1) The board of managers shall pay the proceeds from the sale of\nbonds under this section to the county tax collector.\n(2) The county tax collector shall:\n(i) retain the proceeds in a special fund;\n(ii) disburse the proceeds only as authorized by the board of\nmanagers to carry out the plan of drainage projects; and\n(iii) use any surplus to redeem bonds.\n(g) (1) The board of managers shall certify to the county commissioners\nor county council and to the county tax collector the total amount due each year for\nthe redemption of the bonds or notes issued under this section, including all payments\nof principal and interest.\n(2) Each year, the county tax collector shall compute the amount due\nfrom each landowner, based on the amounts shown in the drainage assessment list,\nso that the total amounts individually due in any year equal the aggregate sum\nrequired in that year to pay the principal of and interest on the bonds or notes.\n(3) The county tax collector shall include in the regular tax bill for\neach taxable year the amounts computed under paragraph (2) of this subsection.\n(4) The special assessments are:\n(i) due and collectible at the same time and in the same\nmanner as county taxes; and\n(ii) subject to the same interest and penalties for late payment\nor nonpayment as county taxes.\n(h) If the drainage work plan approved by the county commissioners or\ncounty council provides for adopting any existing drainage project, the board of\nmanagers may:\n(1) pay the amount necessary to acquire the existing drainage project\nfrom the proceeds of any bonds or notes issued under this section; or\n(2) reimburse a landowner from the proceeds of any bonds or notes\nissued under this section for any amount spent by the landowner in the construction\nof the existing drainage project.\n(i) (1) The county tax collector shall report to the board of managers at\nregular intervals on the amount collected as special assessments during each\ninterval, including a list showing the amount received from each landowner.\n(2) The board of managers shall order the amount collected as special\nassessments to be paid by the county tax collector for the principal of and interest on\nthe bonds or notes issued.\n(j) (1) If an installment of principal of or interest on the bonds or notes\nissued under this subtitle is not paid at the time and in the manner it is due and\npayable and the default continues for a period of 6 months, the holder of the bond or\nnote in default shall have a right of action against the board of managers.\n(2) The circuit court of the county may issue a writ of mandamus\nagainst the board of managers that directs the imposition of a special assessment\nagainst landowners in default in an amount necessary to meet unpaid installments\nof principal and interest and the costs of the action.\n(3) The board of managers shall certify the amounts of the special\nassessment to the county tax collector who shall proceed immediately to collect the\nspecial assessment from the landowners in default according to the procedure\nprovided in this subtitle.\n(4) When the county tax collector collects the amounts certified under\nparagraph (3) of this subsection, the county tax collector, on order of the board of\nmanagers, shall pay the installments of principal and interest in default and the costs\nof the action.\n(5) The official bonds of the county tax collector and any other officers\nshall be liable for the faithful performance of the duties assigned to the officers under\nthis subtitle.\n(6) The holder of any bond or note in default may bring suit against\nany officer on the official bond of the officer for failing to perform a duty required\nunder this section.\n(k) This title shall apply to drainage projects completed under this section\nas if completed with funds by assessments without issuing bonds or notes.","path":["Article - Local Government"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=glg\u0026section=26-803","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:58Z","sha256":"c1d6311467a55c914b68898414b371745740b685a021f19a24760597dfd375e6","source_id":"us-md","stale":false,"prev":"us-md/md.-code-local-government-26-802","next":"us-md/md.-code-local-government-26-804"},"notice":"GroundRules: Original legal text. Not legal advice."}