PARRIS N. GLENDENING, Governor                             Ch. 548

(e)     (1) Before issuing these bonds, the governing body of the municipal
corporation shall:

(i) Designate by resolution [a contiguous] AN area [within its
jurisdiction] OR AREAS as a special taxing district;

(ii) Subject to paragraph (2) of this subsection, adopt a resolution
creating a special fund with respect to the special taxing district; and

(iii) [Levy] PROVIDE FOR THE LEVY OF an ad valorem OR SPECIAL
tax on all real and personal property within the special taxing district at a rate OR
AMOUNT designed to provide adequate revenues to pay the principal of, interest on, and
redemption premium, if any, on the [bonds and] BONDS, to replenish any debt service
reserve fund, [which] AND FOR ANY OTHER PURPOSE RELATED TO THE ONGOING
EXPENSES OF OR SECURITY FOR THE BONDS. AD VALOREM taxes shall be levied in the
same manner, upon the same assessments, for the same period or periods, and as of the
same date or dates of finality as are now or may hereafter be prescribed FOR GENERAL
AD VALOREM TAX PURPOSES WITHIN THE DISTRICT, and shall be discontinued when
all of the bonds have been paid in full. SPECIAL TAXES SHALL BE LEVIED PURSUANT
TO SUBSECTION (N) OF THIS SECTION.

(2) The resolution creating a special fund under paragraph (1)(ii) of this
subsection shall:

(i) Pledge to the special fund the proceeds of the ad valorem OR
SPECIAL tax to be levied as provided under paragraph (1)(iii) of this subsection; and

(ii) Require that the proceeds from the tax be paid into the special
fund.

(f)      [(1)]When no bonds authorized by this section are outstanding with respect
to a special taxing district, and the governing body of the municipal corporation so
determines, moneys in the special fund may be paid to the general fund of the municipal
corporation.

[(2) When any bonds authorized by this section are outstanding with respect
to a special taxing district, moneys in the special fund shall be used in any fiscal year as
provided in paragraph (1) of this subsection, but only to the extent that:

(i) The amount in the special fund exceeds the unpaid debt service
payable on the bonds in that fiscal year; and

(ii) The use is not prohibited by the ordinance authorizing the issuance
of the bonds.]

(g)     (1) In order to implement the authority conferred upon it by this section to
issue bonds, the governing body of a municipal corporation shall adopt an ordinance OR
RESOLUTION that:

(i) Specifies and describes the proposed undertaking and states that it
has complied with subsection (e) of this section;

(ii) Specifies the maximum principal amount of bonds to be issued;
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