§ 82A. Bonds—Issuance.

(a)

The Mayor and City Council of Cumberland (the "City") may borrow money for any proper public purpose and may evidence such borrowing by the issuance and sale of its general obligation bonds in the manner herein prescribed.

(b)

(1)
General obligation bonds of the City shall be authorized by an ordinance which shall contain the following:

(i)

A statement of the aggregate principal amount of bonds authorized to be sold;

(ii)

A statement of the purpose or purposes for which the proceeds of the bonds are to be expended;

(iii)

A statement of the taxes or other revenues from which the principal of and interest on the bonds will be paid; and

(iv)

a requirement that, prior to issuance of any of the bonds authorized, the Mayor and City Council shall adopt a resolution in accordance with subsection (d) of this section.

(2)

A complete copy of an ordinance authorizing general obligation bonds of the City shall be posted in a public place or places within the City for the 30 days following its passage, and the text of the ordinance, or a fair summary thereof, shall be published at least once within 10 days of its passage in a newspaper of general circulation in the City.

(3)

An ordinance authorizing general obligation bonds of the City shall become effective 30 days after its passage, unless a later date is specified in the ordinance.

(c)

(1)
Except as provided in subsection (c)(2) of this section, an ordinance authorizing general obligation bonds of the City may be petitioned to a referendum of the voters of the City. The petition must be submitted to the City Clerk within 30 days after the passage of the ordinance, must be signed by at least 20% of the registered voters of the City, and must request that the ordinance be submitted on referendum to the voters of the City. Each person signing the referendum petition must indicate both his or her name and his or her residence address. Upon receiving the petition, the City Clerk shall verify that each person who signed it is a registered voter of the City. If the petition complies with the foregoing requirements, the Mayor and City Council shall by resolution specify the date for the election at which the question will be submitted to the voters, which may be at either the next regular State primary or general election or municipal election or, in the discretion of the Mayor and City Council, at a special election to be held on such date as they may specify. The election shall be held in accordance with such requirements as to notice and conduct as may be specified from time to time by the provisions of public general law governing referendums on proposed charter amendments of municipal corporations, such provisions being now codified as Sections 15 and 16A of the Maryland Code. If a majority of those who vote on the question cast their votes in favor of the ordinance, the Mayor shall so proclaim within 10 days after receiving a certification of the vote from the Board of Elections, and the ordinance shall thereupon become effective; if less than a majority of those who vote on the question shall cast their votes in favor of the ordinance, the Mayor shall likewise so proclaim, and the ordinance shall be null and void.

(2)

An ordinance authorizing the sale of general obligation bonds of the City may not be petitioned to referendum, even though the full faith and credit and taxing power of the City are pledged to payment of the principal of and interest on the bonds, if the Mayor and City Council in the ordinance finds and declares that half or more of the funds required to pay such principal and interest are expected to be realized from the levying of special assessments, or from the levying of a tax upon property lying within a special taxing district, or from the revenues of a revenue-producing project or projects of the City.

(d)

(1)
Prior to issuing any general obligation bonds of the City, the Mayor and City Council shall adopt a resolution containing:

(i)

The designation, date of issue, denomination or denominations, form or forms and tenor of the bonds;

(ii)

the rate or rates of interest payable on the bonds, or the method of determining the same;

(iii)

The date or dates and amount or amounts of maturity, which need not be in equal par amounts or in consecutive annual installments, provided only that no bond of any issue shall mature later that 40 years from the date of its issue;

(iv)

The manner of selling the bonds, which may be either at public or private sale, for such price or prices as may be determined to be for the best interests of the City;

(v)

If the Mayor and City Council determines that the bonds are to be offered by solicitation of competitive bids at public sale, the terms and conditions of the public sale, including a form of notice of sale;

(vi)

The manner of executing and sealing the bonds, which may be by facsimile;

(vii)

If the Mayor and City council determines that any of the bonds are to be made redeemable before maturity, the price or prices and terms and conditions of redemption;

(viii)

The place or places of payment of the principal of and interest on the bonds, which may be at any bank or trust company within or without the State of Maryland;

(ix)

Provisions specifying the source or sources of funds for payment of the principal of and interest on the bonds, which provisions shall constitute a covenant binding the City to provide the funds from such source or sources as and when needed to pay the principal of and interest on the bonds; and

(x)

Such other provisions regarding the terms, conditions, issuance, sale, and delivery of the bonds as the Council may include.

(2)

A resolution adopted pursuant to this subsection (d) of this section may not be petitioned to referendum and shall become effective immediately upon its adoption.

(3)

The Mayor and City Council may, at its option, delegate to one or more officials the authority to make any of the determinations contemplated in this subsection (d). Notwithstanding the provisions of subsection (b)(1)(iv) of this section, the Mayor and City Council may, at its option, determine or provide for the determination of any of the matters referenced in this subsection (d) by the ordinance contemplated by subsection (b) of this section instead of by resolution.

(4)

In connection with any sale of general obligation bonds by the solicitation of competitive bids at public sale, any such competitive bids may be delivered by electronic and/or facsimile means and/or by any other then-commercially reasonable manner for the public sale of municipal obligations by competitive bid; and any notice of sale may be published solely in summary form in a newspaper of general circulation in the City and/or in a generally recognized financial journal such as The Bond Buyer , or any notice of sale, rather than being published in full or summary form, may be made available solely via the internet or by other electronic means and/or by any other then-commercially reasonable manner for the sale of municipal obligations, all as determined by the Mayor and City Council by resolution or ordinance in accordance with the provisions of this subsection (d). To the extent the Mayor and City Council determine to publish the notice of sale in full or summary form, any such publication need only be made once at least seven (7) days before the initial date fixed for sale.

(e)

References in this section to general obligation bonds shall be construed to refer to general obligation bonds, general obligation notes or other general obligation evidences of indebtedness of the City.

(f)

The power conferred on the City under this section shall be deemed to be additional and supplemental to any other general obligation borrowing authority granted to the City by Maryland, City or federal law, and the City may authorize, issue and secure any such general obligation debt in conformity with this section and/or any other applicable law.

(Char. Amend. Res. No. 95, 9-7-88; Char. Amend. Res. No. 141, § 1, 2-12-13)

Editor's note

The reference in paragraph (c)(1) of the above section to sections 15 and 16A of the Maryland Code is erroneous. Charter amendments are now governed by Ann. Code of Md. art. 27A, § 11 et seq.