Baltimore Charter Decoded

Accessible Law for All People

§ II-50 Revenue bonds and obligations.

(a) Authority to issue.

To borrow money to finance undertakings for the accomplishment of any of the purposes, objects
and powers of the Mayor and City Council of Baltimore and in connection therewith to issue
bonds, notes or other obligations (including refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both principal and interest, solely from and secured
solely by a pledge of
(1)the revenues from or arising in connection with the property, facilities, developments and
improvements whose financing is undertaken by issuance of said bonds, notes or other
obligations,

(2)the revenues from or arising in connection with any contracts, mortgages or other
securities purchased or otherwise acquired with the proceeds of those bonds, notes or
other obligations,

(3)the contracts, mortgages or other securities purchased or otherwise acquired with the
proceeds of those bonds, notes or other obligations, or

(4)any combination of (l), (2), or (3).

Any and all of such bonds, notes or other obligations shall not be general obligations of the
Mayor and City Council of Baltimore and shall not be a pledge of or involve the faith and credit
or the taxing power of the Mayor and City Council of Baltimore, and shall not constitute a debt
of the Mayor and City Council of Baltimore, all within the meaning of Section 7 of Article XI of
the Constitution of Maryland or within the meaning of any other constitutional, statutory or
charter provision limiting or restricting the sale or issuance of bonds, notes or other obligations
of the Mayor and City Council of Baltimore.

The obligations authorized by the provisions of this subsection (50), and the bonds issued and
sold pursuant thereto and their transfer, and the principal and interest payable thereon (including
any profit made in the sale thereof) shall be and remain exempt from any and all State, county
and municipal taxation in the State of Maryland.

(b) Enabling ordinance.

Any and all such bonds, notes or other obligations shall be issued by the Mayor and City Council
of Baltimore pursuant to an ordinance of said municipality without the necessity of submitting
the question of such issuance to the legal voters of Baltimore City for approval or disapproval.
Any such ordinance may prescribe, among other things but not limited to, the form, terms,
provisions, manner or method of issuing and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and all other details of any such bonds, notes
or other obligations and the issuance and sale thereof, and may authorize and empower the
Commissioners of Finance {Board of Finance} by resolution to determine and set forth any and
all of the things hereinabove mentioned and to do any and all things necessary, proper or
expedient in connection with the issuance and sale of such notes, bonds or other obligations
authorized to be issued under the provisions of this subsection (50).

Any moneys from the bonds, notes or other obligations authorized under this subsection (50)
shall not be expended for projects within the limits of Baltimore County without the express
consent of the County Executive and County Council of Baltimore County.

(c) Trust agreement.

Bonds, notes or other obligations authorized to be issued under the provisions of this subsection
(50) by an ordinance of the Mayor and City Council of Baltimore may be secured by a trust
agreement by and between the Mayor and City Council of Baltimore and a corporate trustee,
which may be any trust company, or bank having trust powers, within or without the State.

The ordinance may

(1)approve the form of the agreement,

(2)authorize the Commissioners of Finance {Board of Finance} to approve the form of the
trust agreement or

(3)provide that counterparts of that ordinance may be executed by the appropriate parties so
as to constitute a trust agreement.

The trust agreement, or the authorizing ordinance, may pledge or assign all or any part of

(1)the revenues from or arising in connection with the property, facilities, developments and
improvements whose financing is undertaken by issuance of the bonds, notes or other
obligations,

(2)the revenues from or arising in connection with any contracts, mortgages or other
securities purchased or otherwise acquired with the proceeds of the bonds, notes or other
obligations, or

(3)the contracts, mortgages or other securities purchased or otherwise acquired with the
proceeds of the bonds, notes or other obligations, or

(4)any combination of (1), (2), or (3).

Any such trust agreement or ordinance authorizing the issuance of bonds may contain whatever
provisions for the protection and enforcement of the rights and remedies of the bondholders as
may be deemed reasonable and proper. The trust agreement may set forth the rights and
remedies of the bondholders of the trustee and may restrict the individual right of action by
bondholders. In addition to the foregoing, the trust agreement may contain whatever other
provisions as the Mayor and City Council of Baltimore may deem reasonable and proper for the
security of the bondholders.

All expenses incurred in carrying out the provisions of the trust agreement or ordinance may be
treated as part of the cost of the financing of any project or projects in connection with which the
bonds have been issued.

(d) Enforcement of rights by holders or trustee.

Any holder of bonds, notes or other obligations issued under this subsection (50), or of any of the
coupons appertaining to those bonds, and the trustee, except to the extent the rights herein given
may be restricted by the trust agreement, either at law or in equity, by suit, action, mandamus or
other proceedings, may protect and enforce any and all rights under the laws of this State or
granted hereunder or in the ordinance authorizing the issuance of those bonds, notes or other
obligations or under the trust agreement, and may enforce and compel the performance of all
duties required by this subsection (50) or in the ordinance authorizing the issuance of those
bonds, notes or other obligations or by the trust agreement to be performed by the Mayor and
City Council of Baltimore or by any officer thereof.

(e) Convention Center facilities.

(1)Notwithstanding any other provision of this section, bonds, notes or other obligations
(including refunding bonds, notes or other obligations) issued under this section to finance or
refinance the acquisition, demolition, construction, renovation, expansion, improvement,
furnishing or equipping of convention center facilities may be payable, as to both principal
and interest, from revenues and receipts from the hotel room tax, provided that such revenues
and receipts may not be irrevocably pledged to the payment of such principal and interest and
the obligation to pay such principal and interest from such revenues and receipts shall be
subject to annual appropriation by the Mayor and City Council of Baltimore.

The trust agreement or the authorizing ordinance may pledge or assign:

(i)all or any part of such revenues and receipts, but only to the extent such revenues and
receipts are appropriated by the Mayor and City Council of Baltimore to the payment
of such principal and interest; and

(ii)any fund into which all or any part of such revenues and receipts are deposited after
such revenues and receipts are appropriated by the Mayor and City Council of
Baltimore to the payment of such principal and interest.

(2)As used in this subsection, “convention center facilitiesmeans:

(i)convention centers, trade show facilities, meeting halls, or other structures in
Baltimore City used for the holding of conventions, trade shows, meetings, displays,
or similar events, including, without limitation, the Baltimore City Convention
Center;

(ii)offices, parking lots, garages, access roads, hotels, restaurants, railroad sidings, and
any other property, structures, furnishings or equipment functionally related to the
facilities described in subparagraph (i) of this paragraph; and

(iii) other facilities and properties used or useful or having present capacity for future use
as, or in connection with, convention center facilities, including, without limitation:

1. land, buildings, structures, machinery, equipment and all properties and rights
therein and appurtenances thereof, and rights-of-way, franchises, easements,
and other interests in land;

2. all land and facilities that are functionally related to a convention center
facility; and

3. all patents, licenses and other rights necessary or useful in the construction or
operation of a convention center facility.

(3)As used in this subsection, “hotel room taxmeans the hotel room tax levied by the Mayor
and City Council of Baltimore pursuant to Article 28, Sections 37 through 42, inclusive, of
the Baltimore City Code, as amended, replaced, or supplemented from time to time.
(Ch. 509, Acts of 1972; Ch. 657, Acts of 1974; Ch. 400, Acts of 1993.)

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