(a) A present or future provision of the charter of Prince George's County
or of Anne Arundel County that requires or has the effect of requiring
that such county pledge its unlimited taxing powers, either as to the
rate or amount, for the repayment of its indebtedness, shall not be
given effect if any other provision of the charter of that county
adopted after the provision thereof requiring such pledge is
inconsistent with such pledge.
(b) For the purpose of providing security for the payment of the principal
of and interest on borrowings by Prince George's County or by Anne
Arundel County, the borrowing county, by charter provision or by
legislative act, (1) may provide for the creation of sinking funds,
debt service funds, debt service reserve funds, or other trust funds,
including funds held by a corporate trustee, pledged for such payments,
(2) may provide that, in the event that sufficient funds for the timely
payment of said principal and interest when due are not available or in
the event of a default in the payment of said principal or interest,
the first general fund revenues of that county received thereafter
shall be applied to the payment thereof in amounts sufficient to make
such payment when due or to cure such default as the case may be, and
(3) may pledge any of its revenues to the payment of said principal and
interest to the extent provided by said charter provision or
legislative act.
(c) No charter provision of Prince George's County or Anne Arundel County
shall impair or be construed to impair the obligation of such county to
levy and collect taxes to provide for the payment when due of principal
of and interest on bonds of such county, or bonds guaranteed by such
county, to which that county has pledged its unlimited taxing power,
and which are outstanding on the effective date of such charter
provision.
(d) The provisions of subsection (a) of this section shall apply to all
bonds issued by Prince George's County or by Anne Arundel County prior
to June 30, 1981.
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