1082

LAWS OF MARYLAND

Ch. 11

2, PART III OF THE STATE FINANCE AND PROCUREMENT ARTICLE, and any
bonds thereafter issued from the proceeds of which the notes are
to be paid, together with the interest on the obligations, shall
be and remain exempt from taxation of any kind and nature
whatsoever by the State of Maryland and by any county, municipal
corporation, or other political subdivision of the State.

REVISOR'S NOTE: Chapter ____, Acts of 1985, which enacted

the State Finance and Procurement Article, also
amended subsection (g) of this section.

24.

(a) A municipal corporation subject to the provisions of
Article 23A, a county, whether subject to the provisions of
[Articles] ARTICLE 25, ARTICLE 25A, or ARTICLE 25B, Baltimore
City, a sanitary commission or district, whether organized under
the provisions of public general or public local law, but not
including the Washington Suburban Sanitary Commission, A PUBLIC
CORPORATION OF THE STATE, and a department, commission,
authority, public corporation or other instrumentality of [the
State,] a county or municipal corporation, including Baltimore
City, that has power under any public general or public local law
to borrow money and to evidence the borrowing by the issuance of
its general obligation bonds, revenue bonds or other evidences of
obligation by whatever name known or source of funds secured, may
issue bonds for the purpose of refunding any of its bonds then
outstanding, including the payment of any redemption premium and
any interest accrued or to accrue to the date of redemption,
purchase or maturity of the bonds or other obligations. No
refunding bonds shall be issued [by any State agency without the
prior approval of the Board of Public Works, nor] by any single
county, bicounty or multicounty agency or instrumentality without
the prior approval of the governing body of each county involved.
Refunding bonds issued under the authority of this section may be
issued for the public purpose of:

(1)  Realizing savings to the issuer in the aggregate
cost of debt service on either a direct comparison or present
value basis; or

(2)  Debt restructuring that:

(i) In the aggregate effects such a reduction
in the cost of debt service; or

(ii) Is determined by the governing body to be
in the best interests of the issuer, to be consistent with the
issuer's long-term financial plan, and to realize a financial
objective of the issuer including, improving the relationship of
debt service to a source of payment such as taxes, assessments,
or other charges.

The power to issue refunding bonds under this section shall be
deemed additional and supplemental to the issuer's existing