WILLIAM DONALD SCHAEFER, Governor                            Ch. 523

THE AUTHORIZING RESOLUTION, THE ADDITIONAL BONDS SHALL BE DEEMED TO
BE OF THE SAME ISSUE AND SHALL BE ENTITLED TO PAYMENT FROM THE SAME
FUND WITHOUT PREFERENCE OR PRIORITY OF THE BONDS FIRST ISSUED FOR THE
SAME PURPOSE.

(3)      IF THE PROCEEDS FROM THE SALE OF ANY BOND ISSUE EXCEED
THE AMOUNT REQUIRED FOR THE PURPOSE FOR WHICH THE BONDS HAVE BEEN
ISSUED, THE COMMISSION, BY RESOLUTION, MAY APPLY THE SURPLUS EITHER TO
PAYMENT OF THE COST OF AN ADDITIONAL PROJECT OR PROJECTS OR FOR THE
RETIREMENT OF BONDS OF THAT ISSUE, AS PROVIDED IN THE AUTHORIZING
RESOLUTION.

(4)       WHERE THE PROCEEDS FROM THE ISSUE OF BONDS ARE EXPENSES
FOR THE COST OF ONE OR MORE PROJECTS, WHETHER OR NOT IN ONE OR MORE
SUBDISTRICTS, THE COMMISSION SHALL CREATE SEPARATE CAPITAL ACCOUNTS
FOR EACH PROJECT, AMONG WHICH BOND PROCEEDS SHALL BE DIVIDED AND
FROM WHICH THE SEPARATE COSTS OF EACH PROJECT SHALL BE PAID.

(5)      AS SOON AS EACH PROJECT IS COMPLETED, THE SPECIAL
ASSESSMENTS OR OTHER CHARGES IMPOSED OR MADE BY THE COMMISSION WITH
RESPECT TO THE PROJECT SHALL BE CALCULATED IN WHATEVER MANNER AS TO
PROVIDE A PROPORTION OF THE ANNUAL DEBT SERVICE ON THE ISSUE OF BONDS
EQUAL TO THE PROPORTION OF THE PROCEEDS OF THE ISSUE EXPENDED ON THE
PROJECT.

6-402.

(A)     FOR THE PURPOSE OF FINANCING, IN WHOLE OR IN PART, THE COST OF A
PROJECT OR PROJECTS IN ONE OR MORE SUBDISTRICTS, THE DISTRICT, IN
ADDITION TO THE AUTHORITY AND POWER CONFERRED BY § 6-401 OF THIS
SUBTITLE, MAY BORROW MONEY IN WHATEVER AMOUNT IS NEEDED FOR THAT
PURPOSE. THE DISTRICT MAY EVIDENCE ITS BORROWING BY THE ISSUANCE AND
SALE OF ITS NEGOTIABLE REVENUE BONDS. PRINCIPAL AND INTEREST SHALL BE
MADE SOLELY FROM THE PROCEEDS OF SPECIAL BENEFIT ASSESSMENTS AND
OTHER CHARGES IMPOSED AND MADE BY THE DISTRICT ON THE PROJECT OR
PROJECTS FINANCED WITH THE PROCEEDS OF THE BONDS, WHICH REVENUES THE
DISTRICT MAY PLEDGE TO THEIR PAYMENT. THE COMMISSION MAY FIX AND
DETERMINE THE FORM AND TENOR OF THE REVENUE BONDS, THEIR
DENOMINATIONS, THE RATE OR RATES OF INTEREST PAYABLE ON THEM, THE
PLACE OR PLACES FOR PAYMENT, AND THE METHOD OF SALE, ALL AS PROVIDED IN
§ 6-401 OF THIS SUBTITLE. THE AMOUNT OF THE REVENUE BONDS ISSUED BY THE
DISTRICT MAY NOT EXCEED THE COST OF THE PROJECT OR PROJECTS BEING
FINANCED.

(B)      PAYMENT OF PRINCIPAL AND INTEREST MAY NOT BE GUARANTEED BY
THE COUNTY BUT, ON THE CONTRARY, THE BONDS SHALL RECITE THAT THEIR
PRINCIPAL AND INTEREST ARE PAYABLE SOLELY FROM THE PRESCRIBED
REVENUES OR IN THE RESOLUTION OR TRUST INDENTURE AUTHORIZING THEM.

- 2649 -