| 1 | 1 | | |
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| 2 | 2 | | |
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| 3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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| 4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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| 5 | 5 | | *sb0416* |
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| 6 | 6 | | |
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| 7 | 7 | | SENATE BILL 416 |
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| 8 | 8 | | B3 5lr1427 |
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| 9 | 9 | | SB 693/24 – B&T CF 5lr1428 |
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| 10 | 10 | | By: Carroll County Senators |
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| 11 | 11 | | Introduced and read first time: January 20, 2025 |
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| 12 | 12 | | Assigned to: Budget and Taxation |
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| 13 | 13 | | |
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| 14 | 14 | | A BILL ENTITLED |
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| 15 | 15 | | |
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| 16 | 16 | | AN ACT concerning 1 |
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| 17 | 17 | | |
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| 18 | 18 | | Carroll County – Public Facilities Bond 2 |
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| 19 | 19 | | |
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| 20 | 20 | | FOR the purpose of authorizing and empowering the County Commissioners of Carroll 3 |
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| 21 | 21 | | County, from time to time, to borrow not more than $36,900,000 in order to finance 4 |
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| 22 | 22 | | the construction, improvement, or development of certain public facilities in Carroll 5 |
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| 23 | 23 | | County, including water and sewer projects, to finance loans for fire or 6 |
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| 24 | 24 | | emergency–related equipment, buildings, and other facilities of volunteer fire 7 |
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| 25 | 25 | | departments in the County, and to effect such borrowing by the issuance and sale at 8 |
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| 26 | 26 | | public or private sale of its general obligation bonds in like par amount; empowering 9 |
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| 27 | 27 | | the County to fix and determine, by resolution, the form, tenor, interest rate or rates 10 |
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| 28 | 28 | | or method of determining the same, terms, conditions, maturities, and all other 11 |
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| 29 | 29 | | details incident to the issuance and sale of the bonds; empowering the County to 12 |
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| 30 | 30 | | issue refunding bonds for the purchase or redemption of bonds in advance of 13 |
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| 31 | 31 | | maturity; providing that such borrowing may be undertaken by the County in the 14 |
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| 32 | 32 | | form of installment purchase obligations executed and delivered by the County for 15 |
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| 33 | 33 | | the purpose of acquiring agricultural land and woodland preservation easements; 16 |
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| 34 | 34 | | empowering and directing the County to levy, impose, and collect, annually, ad 17 |
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| 35 | 35 | | valorem taxes in rate and amount sufficient to provide funds for the payment of the 18 |
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| 36 | 36 | | maturing principal of and interest on the bonds; exempting the bonds and refunding 19 |
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| 37 | 37 | | bonds and the interest thereon and any income derived therefrom from all State, 20 |
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| 38 | 38 | | County, municipal, and other taxation in the State of Maryland; providing that 21 |
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| 39 | 39 | | nothing in this Act shall prevent the County from authorizing the issuance and sale 22 |
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| 40 | 40 | | of bonds the interest on which is not excludable from gross income for federal income 23 |
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| 41 | 41 | | tax purposes; and generally relating to the issuance and sale of such bonds. 24 |
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| 42 | 42 | | |
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| 43 | 43 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25 |
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| 44 | 44 | | That, as used herein, the term “County” means the body politic and corporate of the State 26 |
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| 45 | 45 | | of Maryland known as the County Commissioners of Carroll County, and the term 27 |
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| 46 | 46 | | “construction, improvement, or development of public facilities” means the acquisition, 28 |
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| 47 | 47 | | alteration, construction, reconstruction, enlargement, equipping, expansion, extension, 29 |
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| 48 | 48 | | improvement, rehabilitation, renovation, upgrading, and repair of public buildings and 30 2 SENATE BILL 416 |
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| 49 | 49 | | |
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| 50 | 50 | | |
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| 51 | 51 | | facilities and public works projects, including, but not limited to, public works projects such 1 |
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| 52 | 52 | | as roads, bridges and storm drains, public school buildings and facilities, landfills, Carroll 2 |
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| 53 | 53 | | Community College buildings and facilities, public operational buildings and facilities such 3 |
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| 54 | 54 | | as buildings and facilities for County administrative use, public safety, health and social 4 |
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| 55 | 55 | | services, libraries, refuse disposal buildings and facilities, water and sewer infrastructure 5 |
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| 56 | 56 | | facilities, easements or similar or related rights in land that restrict the use of agricultural 6 |
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| 57 | 57 | | land or woodland to maintain the character of the land as agricultural land or woodland, 7 |
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| 58 | 58 | | and parks and recreation buildings and facilities, together with the costs of acquiring land 8 |
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| 59 | 59 | | or interests in land as well as any related architectural, financial, legal, planning, or 9 |
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| 60 | 60 | | engineering services. 10 |
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| 61 | 61 | | |
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| 62 | 62 | | SECTION 2. AND BE IT FURTHER ENACTED, That the County is hereby 11 |
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| 63 | 63 | | authorized to finance any part or all of the costs of the construction, improvements, or 12 |
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| 64 | 64 | | development of public facilities described in Section 1 of this Act, to make loans to each and 13 |
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| 65 | 65 | | every volunteer fire department in the County upon such terms and conditions as may be 14 |
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| 66 | 66 | | determined by the County for the purpose of financing certain fire or emergency–related 15 |
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| 67 | 67 | | equipment, buildings, or other facilities of volunteer fire departments, and to borrow money 16 |
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| 68 | 68 | | and incur indebtedness for those purposes, at one time or from time to time, in an amount 17 |
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| 69 | 69 | | not exceeding, in the aggregate, $36,900,000 and to evidence such borrowing by the 18 |
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| 70 | 70 | | issuance and sale upon its full faith and credit of general obligation bonds in like par 19 |
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| 71 | 71 | | amount, which may be issued at one time or from time to time, in one or more groups or 20 |
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| 72 | 72 | | series, as the County may determine. 21 |
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| 73 | 73 | | |
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| 74 | 74 | | SECTION 3. AND BE IT FURTHER ENACTED, That the bonds shall be issued in 22 |
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| 75 | 75 | | accordance with a resolution of the County, which shall describe generally the construction, 23 |
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| 76 | 76 | | improvement, or development of public facilities, including water and sewer projects, the 24 |
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| 77 | 77 | | fire or emergency–related equipment, buildings, or other facilities of volunteer fire 25 |
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| 78 | 78 | | departments in the County for which the proceeds of the bond sale are intended and the 26 |
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| 79 | 79 | | amount needed for those purposes. The County shall have and is hereby granted full and 27 |
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| 80 | 80 | | complete authority and discretion in the resolution to fix and determine with respect to the 28 |
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| 81 | 81 | | bonds of any issue: the designation, date of issue, denomination or denominations, form or 29 |
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| 82 | 82 | | forms, and tenor of the bonds which, without limitation, may be issued in registered form 30 |
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| 83 | 83 | | within the meaning of § 19–204 of the Local Government Article, as amended; the rate or 31 |
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| 84 | 84 | | rates of interest payable thereon, or the method of determining the same, which may 32 |
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| 85 | 85 | | include a variable rate; the date or dates and amount or amounts of maturity, which need 33 |
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| 86 | 86 | | not be in equal par amounts or in consecutive annual installments, provided only that no 34 |
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| 87 | 87 | | bond of any issue shall mature later than 30 years from the date of its issue; the manner of 35 |
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| 88 | 88 | | selling the bonds, which may be at either public or private sale, for such price or prices as 36 |
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| 89 | 89 | | may be determined to be for the best interests of Carroll County; the manner of executing 37 |
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| 90 | 90 | | and sealing the bonds, which may be by facsimile; the terms and conditions of any loans 38 |
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| 91 | 91 | | made to volunteer fire departments; the terms and conditions, if any, under which bonds 39 |
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| 92 | 92 | | may be tendered for payment or purchase prior to their stated maturity; the terms or 40 |
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| 93 | 93 | | conditions, if any, under which bonds may or shall be redeemed prior to their stated 41 |
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| 94 | 94 | | maturity; the place or places of payment of the principal of and the interest on the bonds, 42 |
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| 95 | 95 | | which may be at any bank or trust company within or without the State of Maryland; 43 |
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| 96 | 96 | | covenants relating to compliance with applicable requirements of federal income tax law, 44 |
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| 97 | 97 | | including (without limitation) covenants regarding the payment of rebate or penalties in 45 SENATE BILL 416 3 |
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| 98 | 98 | | |
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| 99 | 99 | | |
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| 100 | 100 | | lieu of rebate; covenants relating to compliance with applicable requirements of federal or 1 |
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| 101 | 101 | | State securities laws; and generally all matters incident to the terms, conditions, issuance, 2 |
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| 102 | 102 | | sale, and delivery thereof. 3 |
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| 103 | 103 | | |
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| 104 | 104 | | The bonds may be made redeemable before maturity, at the option of the County, at 4 |
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| 105 | 105 | | such price or prices and under such terms and conditions as may be fixed by the County 5 |
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| 106 | 106 | | prior to the issuance of the bonds, either in the resolution or in subsequent resolutions. The 6 |
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| 107 | 107 | | bonds may be issued in registered form, and provision may be made for the registration of 7 |
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| 108 | 108 | | the principal only. In case any officer whose signature appears on any bond ceases to be 8 |
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| 109 | 109 | | such officer before the delivery thereof, such signature shall nevertheless be valid and 9 |
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| 110 | 110 | | sufficient for all purposes as if the officer had remained in office until such delivery. The 10 |
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| 111 | 111 | | bonds and the issuance and sale thereof shall be exempt from the provisions of §§ 19–205 11 |
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| 112 | 112 | | and 19–206 of the Local Government Article, as amended. 12 |
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| 113 | 113 | | |
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| 114 | 114 | | The borrowing authorized by this Act may also be undertaken by the County in the 13 |
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| 115 | 115 | | form of installment purchase obligations executed and delivered by the County for the 14 |
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| 116 | 116 | | purpose of acquiring easements or similar or related rights in land that restrict the use of 15 |
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| 117 | 117 | | agricultural land or woodland to maintain the character of the land as agricultural or 16 |
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| 118 | 118 | | woodland. The form of installment purchase obligations, the manner of accomplishing the 17 |
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| 119 | 119 | | acquisition of easements, which may be the direct exchange of installment purchase 18 |
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| 120 | 120 | | obligations for easement, and all matters incident to the execution and delivery of the 19 |
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| 121 | 121 | | installment purchase obligations and acquisition of the easements by the County shall be 20 |
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| 122 | 122 | | determined in the resolution. Except where the provisions of this Act would be inapplicable 21 |
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| 123 | 123 | | to installment purchase obligations, the term “bonds” used in this Act shall include 22 |
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| 124 | 124 | | installment purchase obligations and matters pertaining to the bonds under this Act, such 23 |
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| 125 | 125 | | as the security for the payment of the bonds, the exemption of the bonds from State, County, 24 |
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| 126 | 126 | | municipal, or other taxation, and authorization to issue refunding bonds and the limitation 25 |
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| 127 | 127 | | on the aggregate principal amount of bonds authorized for issuance, shall be applicable to 26 |
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| 128 | 128 | | installment purchase obligations. 27 |
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| 129 | 129 | | |
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| 130 | 130 | | The County may enter into agreements with agents, banks, fiduciaries, insurers, or 28 |
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| 131 | 131 | | others for the purpose of enhancing the marketability of any security for the bonds and for 29 |
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| 132 | 132 | | the purpose of securing any tender option that may be granted to holders of the bonds, all 30 |
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| 133 | 133 | | as may be determined and presented in the aforesaid resolution, which may (but need not) 31 |
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| 134 | 134 | | state as security for the performance by the County of any monetary obligations under such 32 |
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| 135 | 135 | | agreements the same security given by the County to bondholders for the performance by 33 |
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| 136 | 136 | | the County of its monetary obligations under the bonds. 34 |
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| 137 | 137 | | |
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| 138 | 138 | | If the County determines in the resolution to offer any of the bonds by solicitation of 35 |
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| 139 | 139 | | competitive bids at public sale, the resolution shall fix the terms and conditions of the public 36 |
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| 140 | 140 | | sale and shall adopt a form of notice of sale, which shall outline the terms and conditions, 37 |
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| 141 | 141 | | and a form of advertisement, which shall be published in one or more daily or weekly 38 |
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| 142 | 142 | | newspapers having a general circulation in the County and which may also be published in 39 |
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| 143 | 143 | | one or more journals having a circulation primarily among banks and investment bankers. 40 |
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| 144 | 144 | | At least one publication of the advertisement shall be made not less than 10 days before 41 |
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| 145 | 145 | | the sale of the bonds. 42 |
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| 146 | 146 | | 4 SENATE BILL 416 |
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| 147 | 147 | | |
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| 148 | 148 | | |
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| 149 | 149 | | Upon delivery of any bonds to the purchaser or purchasers, payment therefor shall 1 |
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| 150 | 150 | | be made to the Comptroller of Carroll County or such other official of Carroll County as 2 |
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| 151 | 151 | | may be designated to receive such payment in a resolution passed by the County before 3 |
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| 152 | 152 | | such delivery. 4 |
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| 153 | 153 | | |
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| 154 | 154 | | SECTION 4. AND BE IT FURTHER ENACTED, That the net proceeds of the sale 5 |
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| 155 | 155 | | of bonds shall be used and applied exclusively and solely for the acquisition, construction, 6 |
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| 156 | 156 | | improvement, or development of public facilities, including water and sewer projects, to 7 |
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| 157 | 157 | | make loans to volunteer fire departments for the financing of fire or emergency–related 8 |
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| 158 | 158 | | equipment, buildings, or other facilities of volunteer fire departments in the County for 9 |
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| 159 | 159 | | which the bonds are sold. If the amounts borrowed shall prove inadequate to finance the 10 |
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| 160 | 160 | | projects described in the resolution, the County may issue additional bonds with the 11 |
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| 161 | 161 | | limitations hereof for the purpose of evidencing the borrowing of additional funds for such 12 |
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| 162 | 162 | | financing, provided the resolution authorizing the sale of additional bonds shall so recite, 13 |
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| 163 | 163 | | but if the net proceeds of the sale of any issue of bonds exceed the amount needed to finance 14 |
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| 164 | 164 | | the projects described in the resolution, the excess funds so borrowed and not expended 15 |
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| 165 | 165 | | shall be applied to the payment of the next principal maturity of the bonds or to the 16 |
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| 166 | 166 | | redemption of any part of the bonds which have been made redeemable or to the purchase 17 |
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| 167 | 167 | | and cancellation of bonds, unless the County shall adopt a resolution allocating the excess 18 |
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| 168 | 168 | | funds to the acquisition, construction, improvement, or development of other public 19 |
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| 169 | 169 | | facilities, including water and sewer projects, or to the making of loans for fire or 20 |
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| 170 | 170 | | emergency–related equipment, buildings, or other facilities of volunteer fire departments 21 |
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| 171 | 171 | | in the County, as defined and within the limits set forth in this Act. 22 |
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| 172 | 172 | | |
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| 173 | 173 | | SECTION 5. AND BE IT FURTHER ENACTED, That the bonds hereby authorized 23 |
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| 174 | 174 | | shall constitute, and they shall so recite, an irrevocable pledge of the full faith and credit 24 |
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| 175 | 175 | | and unlimited taxing power of the County to the payment of the maturing principal of and 25 |
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| 176 | 176 | | interest on the bonds as and when they become payable. In each and every fiscal year that 26 |
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| 177 | 177 | | any of the bonds are outstanding, the County shall levy or cause to be levied ad valorem 27 |
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| 178 | 178 | | taxes upon all the assessable property within the corporate limits of the County in rate and 28 |
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| 179 | 179 | | amount sufficient to provide for or assure the payment, when due, of the principal of and 29 |
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| 180 | 180 | | interest on all the bonds maturing in each such fiscal year and, in the event the proceeds 30 |
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| 181 | 181 | | from the taxes so levied in any such fiscal year shall prove inadequate for such payment, 31 |
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| 182 | 182 | | additional taxes shall be levied in the succeeding fiscal year to make up any such deficiency. 32 |
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| 183 | 183 | | The County may apply to the payment of the principal of and interest on any bonds issued 33 |
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| 184 | 184 | | hereunder any funds received by it as loan repayments from volunteer fire departments 34 |
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| 185 | 185 | | and any funds received by it from the State of Maryland, the United States of America, any 35 |
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| 186 | 186 | | agency or instrumentality thereof, or from any other source, if such funds are granted for 36 |
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| 187 | 187 | | the purpose of assisting the County in financing the acquisition, construction, 37 |
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| 188 | 188 | | improvement, or development of the public facilities defined in this Act, including the water 38 |
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| 189 | 189 | | and sewer projects or the making of loans for the aforementioned fire or emergency–related 39 |
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| 190 | 190 | | equipment, buildings, or other facilities for volunteer fire departments in the County and, 40 |
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| 191 | 191 | | to the extent of any such funds received or receivable in any fiscal year, the taxes that are 41 |
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| 192 | 192 | | required to be levied may be reduced accordingly. 42 |
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| 193 | 193 | | |
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| 194 | 194 | | SECTION 6. AND BE IT FURTHER ENACTED, That the County is further 43 |
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| 195 | 195 | | authorized and empowered, at any time and from time to time, to issue its bonds in the 44 SENATE BILL 416 5 |
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| 196 | 196 | | |
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| 197 | 197 | | |
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| 198 | 198 | | manner herein above described for the purpose of refunding, by payment at maturity or 1 |
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| 199 | 199 | | upon purchase or redemption, any bonds issued hereunder. The validity of any such 2 |
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| 200 | 200 | | refunding bonds shall in no way be dependent upon or related to the validity or invalidity 3 |
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| 201 | 201 | | of the obligations so refunded. The powers herein granted with respect to the issuance of 4 |
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| 202 | 202 | | bonds shall be applicable to the issuance of refunding bonds. Such refunding bonds may be 5 |
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| 203 | 203 | | issued by the County for the purpose of providing it with funds to pay any of its outstanding 6 |
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| 204 | 204 | | bonds issued hereunder at maturity, for the purpose of providing it with funds to purchase 7 |
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| 205 | 205 | | in the open market any of its outstanding bonds issued hereunder, prior to the maturity 8 |
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| 206 | 206 | | thereof, or for the purpose of providing it with funds for the redemption prior to maturity 9 |
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| 207 | 207 | | of any outstanding bonds issued hereunder which are, by their terms, redeemable, for the 10 |
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| 208 | 208 | | purpose of providing it with funds to pay interest on any outstanding bonds issued 11 |
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| 209 | 209 | | hereunder prior to their payment at maturity of purchase or redemption in advance of 12 |
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| 210 | 210 | | maturity, or for the purpose of providing it with funds to pay any redemption or purchase 13 |
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| 211 | 211 | | premium in connection with the refunding of any of its outstanding bonds issued 14 |
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| 212 | 212 | | hereunder. The proceeds of the sale of any such refunding bonds shall be segregated and 15 |
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| 213 | 213 | | set apart by the County as a separate trust fund to be used solely for the purpose of paying 16 |
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| 214 | 214 | | the purchase or redemption prices of the bonds to be refunded. 17 |
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| 215 | 215 | | |
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| 216 | 216 | | SECTION 7. AND BE IT FURTHER ENACTED, That the County may, prior to the 18 |
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| 217 | 217 | | preparation of definitive bonds, issue interim certificates or temporary bonds, exchangeable 19 |
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| 218 | 218 | | for definitive bonds when such bonds have been executed and are available for such 20 |
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| 219 | 219 | | delivery, provided, however, that any such interim certificates or temporary bonds shall be 21 |
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| 220 | 220 | | issued in all respects subject to the restrictions and requirements set forth in this Act. The 22 |
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| 221 | 221 | | County may, by appropriate resolution, provide for the replacement of any bonds issued 23 |
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| 222 | 222 | | hereunder which shall have become mutilated or lost or destroyed upon such conditions 24 |
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| 223 | 223 | | and after receiving such indemnity as the County may require. 25 |
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| 224 | 224 | | |
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| 225 | 225 | | SECTION 8. AND BE IT FURTHER ENACTED, That any and all obligations issued 26 |
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| 226 | 226 | | pursuant to the authority of this Act, their transfer, the interest payable thereon, and any 27 |
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| 227 | 227 | | income derived therefrom in the hands of the holders thereof from time to time (including 28 |
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| 228 | 228 | | any profit made in the sale thereof) shall be and are hereby declared to be at all times 29 |
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| 229 | 229 | | exempt from State, County, municipal, or other taxation of every kind and nature 30 |
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| 230 | 230 | | whatsoever within the State of Maryland. Nothing in this Act shall prevent the County 31 |
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| 231 | 231 | | from authorizing the issuance and sale of bonds the interest on which is not excludable 32 |
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| 232 | 232 | | from gross income for federal income tax purposes. 33 |
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| 233 | 233 | | |
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| 234 | 234 | | SECTION 9. AND BE IT FURTHER ENACTED, That the authority to borrow 34 |
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| 235 | 235 | | money and issue bonds conferred on the County by this Act shall be deemed to provide an 35 |
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| 236 | 236 | | additional and alternative authority for borrowing money and shall be regarded as 36 |
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| 237 | 237 | | supplemental and additional to powers conferred upon the County by other laws and shall 37 |
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| 238 | 238 | | not be regarded as in derogation of any power now existing; and all Acts of the General 38 |
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| 239 | 239 | | Assembly of Maryland heretofore passed authorizing the County to borrow money are 39 |
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| 240 | 240 | | hereby continued to the extent that the powers contained in such Acts have not been 40 |
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| 241 | 241 | | exercised, and nothing contained in this Act may be construed to impair, in any way, the 41 |
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| 242 | 242 | | validity of any bonds that may have been issued by the County under the authority of any 42 |
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| 243 | 243 | | said Acts, and the validity of the bonds is hereby ratified, confirmed, and approved. This 43 |
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| 244 | 244 | | Act, being necessary for the welfare of the inhabitants of Carroll County, shall be liberally 44 6 SENATE BILL 416 |
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| 245 | 245 | | |
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| 246 | 246 | | |
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| 247 | 247 | | construed to effect the purposes hereof. All Acts and parts of Acts inconsistent with the 1 |
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| 248 | 248 | | provisions of this Act are hereby repealed to the extent of such inconsistency. 2 |
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| 249 | 249 | | |
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| 250 | 250 | | SECTION 10. AND BE IT FURTHER ENACT ED, That this Act shall take effect 3 |
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| 251 | 251 | | June 1, 2025. 4 |
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| 252 | 252 | | |
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