PARRIS N. GLENDENING, Governor                                 Ch. 548

(E) (1) BONDS SHALL BE PAYABLE FROM THE SPECIAL FUND REQUIRED
UNDER SUBSECTION (F) OF THIS SECTION.

(2) IF THE GOVERNING BODY OF THE COUNTY ISSUES BONDS UNDER THIS
SECTION, THE GOVERNING BODY MAY ALSO:

(I) ESTABLISH SINKING FUNDS;

(II)     ESTABLISH DEBT SERVICE RESERVE FUNDS;

(III)    PLEDGE OTHER ASSETS AND REVENUES TOWARDS THE PAYMENTS
OF THE PRINCIPAL AND INTEREST; OR

(IV)    PROVIDE FOR MUNICIPAL BOND INSURANCE OR ANY OTHER TYPE
OF FINANCIAL GUARANTY OF THE BONDS.

(3) ALL PROCEEDS RECEIVED FROM ANY BONDS ISSUED AND SOLD SHALL
BE APPLIED SOLELY TO PAY THE COST OF INFRASTRUCTURE IMPROVEMENTS,
INCLUDING:

(I) COSTS OF DESIGN, CONSTRUCTION, ESTABLISHMENT,
EXTENSION, ALTERATION, OR ACQUISITION OF INFRASTRUCTURE IMPROVEMENTS;

(II)     COSTS OF ISSUING BONDS;

(III)    PAYMENT OF THE PRINCIPAL AND INTEREST ON LOANS, MONEY
ADVANCES, OR INDEBTEDNESS INCURRED BY THE COUNTY FOR ANY OF THE PURPOSES
STATED IN SUBSECTION (B) (2) OF THIS SECTION, INCLUDING THE REFUNDING OF BONDS
PREVIOUSLY ISSUED UNDER THIS SECTION; AND

(IV)    FUNDING OF A DEBT SERVICE RESERVE FUND OR PAYMENT OF
INTEREST PRIOR TO, DURING, OR FOR A LIMITED PERIOD OF TIME AFTER
CONSTRUCTION.

(F) (1) BEFORE ISSUING THESE BONDS, THE GOVERNING BODY OF THE
COUNTY SHALL:

(I) DESIGNATE BY RESOLUTION AN AREA 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)    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, TO REPLENISH ANY
DEBT SERVICE RESERVE FUND, 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

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