§ 16. Revenue anticipation certificates of indebtedness.

(a)

The Commission may borrow during any fiscal year money on promissory notes, known as revenue anticipation certificates of indebtedness, to bear interest not exceeding 6% per year, signed by the chairman and the secretary or treasurer of the Commission, as may be necessary to meet the liability of the district under the contracts or agreements provided for in Section 12 and to provide funds for the administrative and other expenses and obligations of the district. The Commission may reissue or renew its revenue anticipation certificates of indebtedness at the same or a greater rate of interest not exceeding 6% per year. Money borrowed within any fiscal year under this Subsection shall be repaid during the next succeeding fiscal year from the proceeds of its tax and other revenues received by the Commission during the next succeeding fiscal year. The notes shall be guaranteed as to payment of principal and interest by the County Councils of Montgomery County and Prince George's County, which guarantee shall be endorsed on each of the notes. The guarantee shall be made by resolution of the County Councils of Montgomery County and Prince George's County and shall be evidenced by the endorsement of the guarantee on each of the notes. The endorsement shall be signed on behalf of each county by the County Executive or by any officer designated by the County Executive. In the event of any liability under the above guarantee, the liability for each county shall be in the proportion agreed to in the allocations approved under Section 12; except, any notes issued to provide funds for administrative expenses of the Commission shall be borne by each of the counties upon the basis of population, as set forth in Section 15.

(b)

The notes authorized by this Section, and the interest payable thereon, shall be and remain forever exempt from all State, County and Municipal taxation in the State of Maryland.

(Laws 1965, Ch. 870, Sec. 1; Laws 1970, Ch. 467, Sec. 1; Laws 1963, Sec. 83A-16; Laws 1992, Ch. 22)