§ 82C. Temporary borrowing of bond or other obligation proceeds.

Notwithstanding the provisions of any ordinance, resolution or other official action providing for the appropriation or application of the proceeds of any bonds, notes or other evidences of obligation of the Mayor and City Council of Cumberland (the "City") of any kind or nature whatsoever (the "Obligations") to a particular project or projects or purpose or purposes, the Mayor and City Council may provide by ordinance with a two-thirds vote of the members of the Mayor and City Council for the temporary use of unexpended proceeds of any Obligations to meet temporary cash requirements of any fund of the City and the reimbursement of any such temporary borrowing. The temporary borrowing of unexpected proceeds of any Obligations shall be permitted even if the terms and conditions of repayment provide that repayment shall occur in a different fiscal year. Any ordinance passed in accordance with this Section 82C may delegate to the appropriate City official or officials the authority to determine details of any such temporary borrowing. Any temporary borrowing of unexpended proceeds of Obligations in accordance with this Section 82C shall be made in accordance with any applicable limitations of Maryland or federal law, including (without limitation) any applicable provisions of the Internal Revenue Code of 1986, as amended, and the income tax regulations promulgated thereunder (collectively, the "Tax Code"). In connection with any such temporary borrowing of unexpended proceeds of Obligations that were issued with the expectation that the interest thereon shall be excludable from gross income for purposes of the Tax Code, the appropriate official or officials of the City are authorized to execute and deliver any certificates or instruments deemed appropriate by bond counsel to the City (including, without limitation, any amendments or supplements to then-existing tax certificates of the City) and to take any action necessary to preserve the tax-exempt status of such Obligations, including (without limitation) making any elections, designations, determinations or filings required or permitted by the Tax Code and making any required payments of arbitrage rebate. The provisions of this Section 82C shall be liberally construed in order to effectuate the temporary borrowing of unexpended proceeds of Obligations contemplated hereby, subject to any applicable limitations of Maryland or federal law, including the Tax Code.

(Char. Amend. Res. No. 140, § 1, 5-10-11)