PARRIS N. GLENDENING, Governor

Ch. 517

(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 OF 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.

(E) (1) BEFORE ISSUING BONDS UNDER THIS SECTION. THE COUNTY
COMMISSIONERS SHALL:

(I) DESIGNATE BY RESOLUTION ONE OR MORE AREAS AS A
COMMUNITY DEVELOPMENT AUTHORITY;

(II) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, ADOPT A
RESOLUTION CREATING A SPECIAL FUND WITH RESPECT TO THE COMMUNITY
DEVELOPMENT AUTHORITY; AND

(III) PROVIDE FOR THE LEVY OF AN AD VALOREM OR COMMUNITY
DEVELOPMENT TAX OR FEE ON ALL REAL OR PERSONAL PROPERTY WITHIN THE
COMMUNITY DEVELOPMENT AUTHORITY 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.

(2) AD VALOREM TAXES LEVIED UNDER THIS SECTION 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
GENERAL AD VALOREM TAXES WITHIN THE COMMUNITY DEVELOPMENT
AUTHORITY AND SHALL BE DISCONTINUED WHEN ALL OF THE BONDS HAVE BEEN
PAID IN FULL SPECIAL TAXES OR FEES SHALL BE LEVIED PURSUANT TO
SUBSECTION (N) OF THIS SECTION.

(3) 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 OR FEE TO BE LEVIED AS PROVIDED IN PARAGRAPH
(1)(III) OF THIS SUBSECTION; AND

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