WILLIAM DONALD SCHAEFER, Governor                            Ch. 612

DEVELOPMENT DISTRICT FOR WHICH THE PRINCIPAL, INTEREST, AND ANY
PREMIUM SHALL BE PAID FROM SPECIAL TAXES, ASSESSMENTS, FEES, OR CHARGES
COLLECTED BY THE COUNTY IN THE DEVELOPMENT DISTRICT.

(C)      (1) BONDS OR OTHER OBLIGATIONS ISSUED UNDER THIS SECTION MAY
NOT CONSTITUTE A GENERAL OBLIGATION DEBT OF THE COUNTY OR A PLEDGE OF
THE COUNTY'S FULL FAITH AND CREDIT OR TAXING POWER.

(2)      BONDS OR OTHER OBLIGATIONS ISSUED UNDER THIS SECTION MAY
BE SOLD AT A PRIVATE NEGOTIATED SALE AND ARE NOT SUBJECT TO ARTICLE 31, §§
10 AND 11 OF THE ANNOTATED CODE OF MARYLAND.

(3)      WITH THE EXCEPTION OF § 312 OF THE COUNTY CHARTER, BONDS
OR OTHER OBLIGATIONS ISSUED UNDER THIS SECTION SHALL BE SUBJECT TO THE
PROVISIONS OF THAT CHARTER.

(4)      THIS SECTION MAY NOT BE CONSTRUED TO LIMIT THE POWER OF
THE COUNTY TO CREATE DEVELOPMENT DISTRICTS OR ISSUE SPECIAL OBLIGATION
BONDS OR OTHER OBLIGATIONS UNDER ANY OTHER APPLICABLE LAW.

(5)      THE BONDS AND ANY OTHER EVIDENCES OF OBLIGATION ISSUED
UNDER THIS SECTION, THEIR TRANSFER, THE INTEREST PAYABLE ON THEM, AND
ANY INCOME DERIVED FROM THEM, INCLUDING ANY PROFIT REALIZED ON THEIR
SALE OR EXCHANGE, SHALL BE EXEMPT AT ALL TIMES FROM EVERY KIND AND
NATURE OF TAXATION BY THE STATE OR BY ANY OF ITS POLITICAL SUBDIVISIONS,
MUNICIPAL CORPORATIONS, OR PUBLIC AGENCIES OF ANY KIND.

(D)     (1) PRIOR TO THE ISSUANCE OF DEBT UNDER THIS SECTION, THE
COUNTY SHALL NOTIFY AND CONSULT WITH THOSE ORGANIZATIONS THAT RATE
THE COUNTY'S GENERAL OBLIGATION BONDS IN AN EFFORT TO ENSURE, TO THE
EXTENT REASONABLY POSSIBLE, THAT THE COUNTY'S GENERAL OBLIGATION BOND
RATINGS WILL NOT BE ADVERSELY AFFECTED BY THE ISSUANCE OF THE SPECIAL
OBLIGATION DEBT.

(2) BONDS MAY NOT BE ISSUED UNDER THIS SECTION UNLESS THE
COUNTY OBTAINS A RATING OF INVESTMENT GRADE FOR THE BONDS FROM AT
LEAST ONE OF THE ORGANIZATIONS THAT RATE THE COUNTY'S GENERAL
OBLIGATION BONDS.

(E)      (1) DEBT ISSUED UNDER THIS SECTION:

(I)       SHALL BE USED ONLY TO FINANCE THE COSTS OF PUBLIC
INFRASTRUCTURE TO SERVE THE DEVELOPMENT DISTRICT; AND

(II)     SHALL BE SECURED BY REVENUES DERIVED FROM THE
DEVELOPMENT DISTRICT.

(2) THIS SUBSECTION DOES NOT PROHIBIT THE FINANCING UNDER THIS
SECTION OF PUBLIC INFRASTRUCTURE THAT ALSO PROVIDES BENEFITS TO THE
GENERAL PUBLIC.

- 2781 -