A.
The Town of Pittsville shall have the power to borrow on the faith
and credit of the town from time to time as may be deemed necessary
for the general welfare of the city[1] and its general corporate purposes; and without limiting
the generality of the foregoing, it shall have the power to borrow
for the encouragement of industrial development and expansion in the
Town of Pittsville by providing plants or necessary facilities therefor,
which hereby is declared to be an essential public and governmental
purpose and necessary for the general welfare of the town. The town
may issue and sell bonds to evidence such borrowing in accordance
with § PC-93 of this Charter or with state law; and such
bonds may be secured by a pledte[2] of the full faith and credit of the town or of the revenues
derived from the particular project, undertaking or property in connection
with which such bonds were authorized and issued or by a pledge both
of the town's full faith and credit and such revenues.
B.
In addition, when the Town of Pittsville has received a funded commitment
from the government of the United States or of the State of Maryland,
or any agency of either, for the loan, gift or grant of any funds
to be received at a time certain or upon the request of the Commissioners
of Pittsville, the Town of Pittsville may, upon passage of a resolution
of the Commissioners of Pittsville with the affirmative votes of a
majority thereof, borrow upon the full faith and credit of the Town
of Pittsville from time to time not to exceed eighty-five percent
(85%) of the proceeds of such loan, gift or grant and may issue its
notes to evidence such borrowing and pay such rate of interest on
the sums borrowed as shall be authorized by the resolution of the
Commissioners of Pittsville; provided, however, that all such sums
so borrowed shall be repaid in full out of the proceeds of the loan,
gift or grant aforesaid.
A.
Approval of issue. All proposed bond issues shall be approved by
the Commissioners.
B.
Form, interest, term, etc., of bonds. Bonds may be either coupon
or registered bonds. All bonds shall have serial maturities or have
the benefit of a sinking fund sufficient to retire the issue at maturity.
They shall be issued in such denominations, at such rates of interest
and for such periods of the time as the Council of Commissioners may
decide.
C.
Signing, etc., of bonds. All bonds shall be signed by the President
of the Commissioners, the Seal of the Town attached thereto and attested
by the Town Clerk, except that the signature of the President of the
Commissioners and said Seal may be facsimiles engraved, printed or
otherwise reproduced.
D.
Sale of bonds.
(1)
The Town Treasurer shall sell bonds by sealed bids after giving two
(2) weeks' notice in one (1) or more newspapers of general circulation
in the Town of Pittsville and in such other publications as the Commissioners
may decide, except that in the case of the town's revenue bonds
and/or of any bonds for which no sealed bid was received, the Town
Treasurer may, with the express advance permission and authority of
the Commissioners in each particular instance, offer and sell such
revenue bonds at private sale, after such negotiation with one (1)
or more prospective purchasers and after such notice of the proposed
sale, to the general public or to one (1) or more prospective purchasers,
by mail or published advertisement, as the Commissioners in their
discretion may approve and authorize. The sale of all bonds shall
be carried on under such rules and regulations as the Council of Commissioners
may prescribe. No bonds shall be sold except at prices approved by
the Commissioners and at not less than their face amount.
(2)
Nothing hereinbefore set forth in this subsection shall, however,
prevent the Town Treasurer from selling bonds to the United States
of America or to the State of Maryland or to any agency of either
of them duly authorized to purchase municipal bonds, at private sale
upon the same terms and conditions as shall govern other purchases
of municipal bonds by the United States of America or the State of
Maryland or the duly authorized agency of either of them; nor shall
the Town Treasurer be required to advertise for and to take binds[1] on any bond issue before selling the same at private sale
to the United States of America or the State of Maryland or any agency
of either of them.
[1]
Editor's Note: So in original. Probably should read "bids."
E.
Custody and delivery of bonds. When signed and attested, the bonds
shall be delivered to the Town Treasurer, who shall be responsible
for their safekeeping and delivery to the purchaser.
F.
Disposition of proceeds of sale. Proceeds from the sale of all bonds
shall be deposited by the Town Treasurer to the credit of the Town
of Pittsville in such account or accounts and under such rules and
regulations as the Commissioners shall prescribe.
G.
Effect of Article 43 of the Annotated Code of Maryland. No provision
or limitation contained in this Charter shall apply to or affect the
issuance and sale of bonds by the town pursuant to the provisions
of Article 43 of the Annotated Code of Maryland, titled "Health,"
or any amendments thereto.
H.
Payments, effect, terms, conditions, security, etc., of revenue bonds.
Revenue bonds issued and sold by the Town of Pittsville, whether or
not the full faith and credit of the town has been pledged, shall
be made payable, both as to principal and interest, solely from the
income, rentals, proceeds, revenues and funds of the town derived
from the particular project, undertaking or property in connection
with which such bonds were authorized and issued, except that payment
of such bonds, both as to principal and interest, may be further secured
by the pledge of any part or all of any taxes in the form of special
assessments upon property in a limited and determinable area connected
or associated with or specially benefited by the particular project,
undertaking or property, or by a mortgage of all or any part of such
particular project, undertaking or property, if title thereto is held
by the town, and except that, in case of an issuance of revenue bonds
for constructing, improving, equipping and acquiring parking facilities
of every type and description (which facilities may include roads,
streets, runways, waterways and bridges facilitating the movement
of all traffic in the vicinity of parking areas), such ordinance and
any trust indenture or mortgage executed pursuant thereto shall establish
the security for such revenue bonds, which security may include, in
addition to other security permitted by law, the assignment and pledge,
in whole or in part, of rates, rentals, fees, charges or other revenues,
then being or thereafter to be received by the town from parking facilities,
including but not limited to collections from parking meters on public
thoroughfares; and an agreement by the town to pay any deficiency
in the debt service requirements of such revenue bonds for any year
in which there is a deficit, provided that any such payment under
any agreement or agreements shall not exceed but shall be limited
and restricted to the sum which would be received from a tax of two
cents ($0.02) per hundred dollars on the assessable basis of the town
for any one year. In addition, the town may enter into a trust agreement
or trust indenture with any band[2] or trust company authorized to do business in Maryland and may make in such instrument such covenants and commitments as may be required by any purchaser for the adequate security of said revenue bonds. Revenue bonds issued under this section shall not constitute an indebtedness within the meaning of § PC-94 hereof and are hereby specifically exempted from the restrictions contained in Sections 9, 10 and 11 of Article 31 of the Annotated Code of Maryland, 1957 Edition, as amended. Revenue bonds issued under this section shall be authorized by ordinance and issued in one (1) or more series and bear such date or dates, mature at such time or times, bear interest at such rate or rates, not exceeding six per centum (6%) per annum, be in such denomination or denominations, be in such form either with or without coupons or registered, carry such registration privileges, have such rank or priority, be executed in such manner, be payable in such place or places, be subject to such terms of redemption (with or without premium), be secured in such manner and have such other characteristics as may be provided by such ordinances or the trust indenture or mortgage executed pursuant thereto and, in case of an issuance of revenue bonds for industrial development, shall set forth the precise terms and conditions upon which the town shall have agreed to provide a plant or plants or other necessary facilities therefor, as provided by the Commissioners, which terms and conditions may include:
(1)
Acquisition, construction and ownership by the town or by a public
nonprofit corporation of all such facilities and the lease thereof
to, or installment purchase thereof by, the industry.
(2)
The acquisition, construction and ownership of all such facilities
by the industry, in whole or in part by use of funds supplied by the
town or by a public nonprofit corporation and secured by appropriate
mortgage or other security instrument payable in installments over
a period of years.
(3)
The payment by the industry of an annual sum in lieu of taxes on
such facilities if such facilities of same are owned by the town or
by a public nonprofit corporation.
(4)
Any other terms, provisions and restrictions which the Commissioners
may determine to be necessary or appropriate in the circumstances.
[2]
Editor's Note: So in original. Probably should read "bond."
The issuance and sale of general obligation bonds; bond, loan
or gift anticipation notes; or tax anticipation or emergency notes,
shall constitute a pledge of the full faith and credit of the town
to the prompt payment, when due, from ad valorem taxes and such other
revenues as may be described in the authorizing ordinance or ordinances,
of the principal of and interest on such bonds or notes. The maturing
principal of and interest on any general obligation bonds may be paid
in whole or in part from the proceeds of benefit assessments or other
revenues; but, in any event, the Commissioners shall, if and when
necessary, annually levy, upon all property within its corporate limits
subject to ad valorem taxes, taxes sufficient to provide for the payment
of the maturing principal and interest on any such bonds or notes,
without limitation of law, and the issuance and sale of any such bonds
or notes shall constitute a covenant to that effect.
At any time in the budget year, the Commissioners may, pursuant
to this section, make emergency appropriations to meet a pressing
need for public expenditures, for other than a regular or recurring
requirement, to protect the public health, safety and welfare. Such
appropriation shall be a resolution adopted by the favorable votes
of at least four-fifths (4/5) of the members of the Council of Commissioners.
The total amount of any emergency appropriations made in any budget
year shall not exceed five percent (5%) of the total appropriations
made in the budget year for that year. In the absence of unappropriated
available revenues to meet emergency appropriations, the Commissioners
shall in their resolution authorize the issuance of notes, each of
which shall be designated "emergency note," but all such notes or
renewals thereof shall be paid not later than the last day of the
fiscal year next succeeding the fiscal year in which the emergency
appropriation was made. They shall be sold in the manner provided
by the Commissioners.
