HARRY HUGHES, Governor

3337

(3) Pledge that until the bonds have been fully
paid OR THEREAFTER, the property taxes on real property
within the development district shall be divided as follows:

(i) That portion of the taxes which would
be produced by the rate at which taxes levied each year by
or for a municipality or county upon the original taxable
value shall be allocated to and when collected paid into the
funds of the respective taxing bodies in the same manner as
taxes by or for the taxing bodies on all other property are
paid.

(ii) That portion of the taxes
representing the levy on the tax increment that would
normally be paid to the issuing body shall be paid into a
special fund to be applied [toward the repayment of these
bonds] IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTIONS (B)
AND (C) OF THIS SECTION SECTION 266JJ-8. This yield shall
not be considered as county or municipal taxes for the
purposes of any constant yield tax limitation or State or
local restriction, except for tax revenues received from
residential properties in Prince George's County. No State
real property taxes may be paid into the special fund.

(B) AFTER A DEVELOPMENT DISTRICT IS DESIGNATED, BUT
BEFORE BONDS ARE ISSUED UNDER THIS SUBHEADING, THE TAX
REVENUES IN THE SPECIAL FUND REFERRED TO IN SUBSECTION
(A)(3)(II) OF THIS SECTION MAY BE APPLIED FOR ANY OF THE
PURPOSES AUTHORIZED IN § 266JJ-5(A) OF THIS SUBHEADING.

(C) AFTER BONDS ARE ISSUED UNDER THIS SUBHEADING, THE
TAX REVENUES IN THE SPECIAL FUND SHALL BE APPLIED SOLELY
FOR:

(1) REPAYMENT OF THE BONDS ISSUED UNDER THIS
ACT; AND

(2) ANY OF THE PURPOSES IN § 266JJ-5(A) OF THIS
SUBHEADING, DIRECTLY AND WITHOUT THE NEED FOR FURTHER
BORROWING, BUT ONLY TO THE EXTENT THAT THE REVENUES IN THE
SPECIAL FUND, AS ACCUMULATED SINCE DESIGNATION OF THE
DISTRICT, EXCEED THE AMOUNT NEEDED IN A PARTICULAR YEAR TO
PAY THAT YEAR'S DEBT SERVICE FOR BONDS ISSUED UNDER THIS
SUBHEADING.

(D) EXCESS REVENUES FOR A YEAR MAY NOT BE EXPENDED
UNTIL REVENUES SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST
FOR BONDS ISSUED UNDER THIS SUBHEADING HAVE BEEN PAID OUT OR
SET ASIDE.

266JJ-7.

THE GOVERNING BODY OF ANY COUNTY OR MUNICIPALITY MAY
ADOPT AN ORDINANCE OR RESOLUTION CREATING A SPECIAL FUND