[Amended 6-6-2017 by Bill
No. 1-2017]
In addition to whatever borrowing procedures
may now or hereafter be established or provided by public general
or public local law applicable to the County Commissioners of Kent
County with respect to any borrowing authority now or hereafter granted
to the County Commissioners of Kent County by an Act of the General
Assembly, the terms of which permit general obligation bonds evidencing
the exercise of such borrowing authority to be sold at private sale,
said County Commissioners are hereby authorized to exercise the borrowing
authority of said Act in whole or in part by negotiating, at one time
or from time to time, a loan or loans with one or more banks or trust
companies having an office or offices in the County. All terms and
conditions of such loan or loans, including the form or forms of evidence
of indebtedness and the time or times, place or places, amount or
amounts and conditions of repayment of the principal thereof and interest
thereon, shall be determined by resolution of the County Commissioners
in the exercise of their absolute discretion for the best interests
of the County and shall not be limited or conditioned by any other
provision of public general or public local law, whether or not contained
in said Act or in the Local Government Article of the Annotated Code
of Maryland, Creation of Public Debt — Code Counties, or elsewhere;
provided, however, that the resolution shall refer to said Act the
borrowing authority of which is being so exercised. Any such resolution
shall constitute, and shall recite that it so constitutes, an irrevocable
pledge of the full faith and credit and unlimited taxing power of
the County Commissioners of Kent County to the payment of the principal
of and interest on the loans therein provided for.[1]
[Added 1-6-2004 by Bill No. 6-2003; amended 12-6-2005 by Bill No. 5-2005; 4-17-2007 by Bill No.
2-2007; 8-4-2009 by Bill No. 4-2009[1]]
A.
The County Commissioners of Kent County are hereby authorized and empowered pursuant to the Local Government Article, Title 19, Subtitle 5 of the Annotated Code of Maryland, as amended from time to time, to borrow money and incur indebtedness for the public purposes described in Subsection B of this section, in any fiscal year, in an aggregate principal amount not exceeding $20,000,000, and to evidence such borrowing by the issuance and sale, at public or private sale, upon its full faith and credit, of its general obligation bonds in like par amount, which may be issued at one time or from time to time in such fiscal year, in one or more groups or series, as the County Commissioners of Kent County may determine.
[Amended 6-6-2017 by Bill
No. 1-2017]
B.
The net proceeds from the sale of the bonds authorized to be issued
under this section shall be used and applied for the financing or
refinancing general operating expenses or capital improvements of
the County Commissioners of Kent County.
C.
Prior to issuing all or any part of the bonds authorized to be issued
hereunder, the County Commissioners shall adopt a resolution containing
all of the provisions required under The Local Government Article,
§ 19-504 of the Annotated Code of Maryland, as amended from
time to time. The resolution may also contain such other provisions
as the County Commissioners may deem appropriate. The resolution may
be adopted by the County Commissioners at any time after the enactment
of this section, and the appropriate officers of the County Commissioners
of Kent County may take any action deemed appropriate to effect the
timely issuance and sale of the bonds pursuant to the resolution at
any time after the enactment of this section, provided only that the
resolution may not become finally effective until the effective date
of the Act enacting this section. The bonds may be sold on any date
or dates after the effective date of the Act enacting this section.
[Amended 6-6-2017 by Bill
No. 1-2017]
D.
Levy of taxes to pay bonds.
(1)
For the purpose of satisfying the debt service requirements on the
bonds, the County Commissioners of Kent County shall levy for each
and every fiscal year during which any of the bonds may be outstanding
ad valorem taxes upon all real and tangible personal property within
its boundaries subject to assessment for unlimited taxation by County
Commissioners of Kent County in rate and amount sufficient to provide
for the prompt payment of the principal of and the interest on the
bonds maturing in each fiscal year; and, in the event the proceeds
from the collection of the taxes so levied in any such fiscal year
may prove inadequate for such purpose, additional taxes shall be levied
in the subsequent fiscal year to make up any deficiency.
(2)
The full faith and credit and unlimited taxing power of the County
Commissioners of Kent County are hereby irrevocably pledged to the
prompt payment of the maturing principal of and interest on the bonds
as and when the same respectively mature, and to the levy and collection
of the taxes hereinabove described as and when such taxes may become
necessary in order to provide sufficient funds to meet the debt service
requirements of the bonds. The County Commissioners of Kent County
hereby covenant with each holder of any of the bonds to take any action
that may be appropriate from time to time during the period that any
of the bonds remain outstanding and unpaid to provide the funds necessary
to make the principal and interest payments due thereon and further
covenant and agree to levy and collect the taxes hereinabove described.
E.
[2]In addition to the authority provided in Subsections A through D, inclusive, of this section, the County Commissioners of Kent County are hereby authorized pursuant to the Local Government Article, §§ 19-205 and 19-206 of the Annotated Code of Maryland, as amended from time to time, and the Local Government Article, § 19-207 of the Annotated Code of Maryland, as amended from time to time (the "Refunding Act") to issue its bonds ("refunding bonds") for the purpose of refunding any bonds issued heretofore or hereafter under this section. References to the bonds in Subsections B through D, inclusive, of this section shall include the refunding bonds, unless the context requires otherwise. The refunding bonds may be issued at one time or from time to time, for one or more public purposes specified for the issuance of refunding bonds in the Refunding Act, and sold at public or private sale, as may be further provided in the resolution of the County Commissioners adopted pursuant to Subsection C of this section. The aggregate principal amount of refunding bonds shall not exceed 120% of the principal amount of the bonds being refunded. The validity of any such refunding bonds shall in no way be dependent upon or related to the validity or invalidity of the obligations so refunded.
[Amended 6-6-2017 by Bill
No. 1-2017]
[2]
Editor’s Note: Former Subsection E, which exempted the
bonds authorized to be issued hereunder from certain provisions of
the Annotated Code of Maryland, was repealed 6-6-2017 by Bill No.
1-2017. This ordinance also provided for the redesignation of former
Subsection F as Subsection E.
F.
The provisions
of § 19-205 of the Local Government Article of the Annotated
Code of Maryland, as amended from time to time, do not apply to this
section.
[Added 4-6-2021 by Bill No. 5-2021]
[1]
Editor's Note: This bill also stated that it would not affect
the validity of any bonds issued prior to its enactment.
[Added 6-6-2017 by Bill
No. 1-2017]
Members of boards, commissions and committees
appointed by the County Commissioners of Kent County shall not be
paid any compensation for their services, except where otherwise provided
in this Code, but may be reimbursed for reasonable expenses incurred
in their duties as designated by the County Commissioners.
[1]
Editor’s Note: Former § 3-12, Sanitary District
Commission, amended 12-6-1994 by Bill No. 6-94, was repealed 6-6-2017
by Bill No. 1-2017.
