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§ 12-113. Payment of bonds

MD Econ Dev Code § 12-113 (2019) (N/A)
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(a)    (1)    A bond and the interest on a bond are limited obligations of the public body.

(2)    Except for bond anticipation notes and notes in the nature of commercial paper, the principal of, premium, and interest on a bond are payable solely from:

(i)    money from the financing of a facility; or

(ii)    other money made available to the public body.

(3)    Bonds and the interest on them:

(i)    are not debts or charges against the general credit or taxing powers of a public body within the meaning of any constitutional or charter provision or statutory limitation; and

(ii)    may not give rise to any pecuniary liability of an issuing public body.

(4)    A bond may state on its face that the bond:

(i)    is issued under this subtitle; and

(ii)    is not a debt to which the public body’s faith and credit is pledged.

(b)    On default in the payment of the principal of or interest on a bond, a court with jurisdiction:

(1)    may appoint a receiver or take other appropriate action to provide for the payment of the bond; and

(2)    shall apply any available revenue as this subtitle or a resolution adopted under this subtitle provides.

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