PARRIS N. GLENDENING, Governor

Ch. 244

FOR UNLIMITED AD VALOREM TAXATION, SUFFICIENT IN EACH YEAR IN WHICH
ANY OF THE LOCAL OBLIGATIONS ARE OUTSTANDING TO PROVIDE FOR THE
PAYMENT OF THE PRINCIPAL OF AND THE INTEREST ON THE LOCAL OBLIGATIONS.

B. IF AT THE TIME OF ISSUANCE OF ANY LOCAL
OBLIGATIONS THERE IS A CHARTER OR STATUTORY LIMITATION UPON THE POWER
OF AN ISSUER TO LEVY PROPERTY TAXES, THEN A PLEDGE OF THE FAITH AND
CREDIT OF THE ISSUER SHALL CONSTITUTE A COVENANT OF THE ISSUER TO LEVY
AD VALOREM TAXES IN RATE AND AMOUNT SUFFICIENT IN EACH YEAR IN WHICH
ANY OF THE LOCAL OBLIGATIONS ARE OUTSTANDING TO PROVIDE FOR THE
PAYMENT OF THE PRINCIPAL OF AND THE INTEREST ON THE LOCAL OBLIGATION
WITHIN THE LIMITATIONS SO PRESCRIBED BY LAW.

C NO LOCAL OBLIGATIONS SHALL BE ISSUED BY AN ISSUER,
IF THE ISSUANCE CAUSES THE ISSUER TO EXCEED ANY EXISTING MAXIMUM UMTS
ON THE POWER OF THE ISSUER TO INCUR INDEBTEDNESS FIXED BY THE CHARTER
OF THE ISSUER OR BY STATUTE, PROVIDED THAT A MAXIMUM LIMITATION
IMPOSED AFTER THE ISSUE OF ANY LOCAL OBLIGATIONS SHALL NOT IMPAIR OR IN
ANY MANNER AFFECT THE OBLIGATION THEREOF, NOR SHALL ANY OUTSTANDING
LOCAL OBLIGATIONS OF AN ISSUER BE IMPAIRED OR IN ANY MANNER AFFECTED BY
THE ISSUANCE OF LOCAL OBLIGATIONS BECAUSE OF AN INCREASE IN THE
MAXIMUM LIMITATION ON THE POWER TO INCUR INDEBTEDNESS, OR THE
ELIMINATION OF THE MAXIMUM LIMITATION, ENACTED AFTER THE ISSUE OF THE
OUTSTANDING LOCAL OBLIGATIONS.

2. REVENUE OBLIGATIONS:

A.       AN ISSUER MAY SECURE PAYMENT ON ITS LOCAL
OBLIGATION BY THE PLEDGE OF SPECIFIC REVENUES OF THE ISSUER, INCLUDING
PAYMENTS TO THE ISSUER FROM THE STATE GOVERNMENT OR FEDERAL
GOVERNMENT AND SPECIAL BENEFIT ASSESSMENTS, TAXES, FEES, OR SERVICE
CHARGES WHICH THE ISSUER IS AUTHORIZED AND EMPOWERED TO IMPOSE, LEVY,
OR CHARGE; OR

B.       AN ISSUER MAY SECURE PAYMENT ON ITS LOCAL
OBLIGATION BY SPECIFIC REVENUES EXPECTED TO BE GENERATED BY THE
FACILITY TO BE FINANCED.

(VI) ALL LOCAL OBLIGATIONS ISSUED BY ANY ISSUER UNDER THIS
PARAGRAPH SHALL HAVE AND POSSESS ALL THE ATTRIBUTES OF NEGOTIABLE
INSTRUMENTS AS PROVIDED IN ARTICLE 31, § 8 OF THE CODE. THE PRINCIPAL OF
AND INTEREST ON ANY LOCAL OBLIGATIONS IN THE HANDS OF THE OWNER OR
OWNERS THEREOF FROM TIME TO TIME, SHALL BE AND REMAIN EXEMPT FROM
TAXATION OF ANY KIND OR NATURE WHATSOEVER BY THE STATE OR ANY COUNTY,
MUNICIPAL CORPORATION, OR OTHER POLITICAL SUBDIVISION OF THE STATE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1996.

Approved April 30, 1996.

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