§ 12-113

Md. Code, Economic Development § 12-113, under Article — Economic Development.

Md. Code, Economic Development § 12-113

(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.