§ 12-113
202 words·~1 min read·
/md/economic-development/12-113A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§12–113.
(1)A bond and the interest on a bond are limited obligations of the public body.
(2)Except for bond anticipation notes and notes in the nature of commercial paper, the principal of, premium, and interest on a bond are payable solely from:
(i)money from the financing of a facility; or
(ii)other money made available to the public body.
(3)Bonds and the interest on them:
(i)are not debts or charges against the general credit or taxing powers of a public body within the meaning of any constitutional or charter provision or statutory limitation; and
(ii)may not give rise to any pecuniary liability of an issuing public body.
(4)A bond may state on its face that the bond:
(i)is issued under this subtitle; and
(ii)is not a debt to which the public body’s faith and credit is pledged.
(b)On default in the payment of the principal of or interest on a bond, a court with jurisdiction:
(1)may appoint a receiver or take other appropriate action to provide for the payment of the bond; and
(2)shall apply any available revenue as this subtitle or a resolution adopted under this subtitle provides.