Maryland Code, LOCAL GOVERNMENT 12-403
Terms Used In Maryland Code, LOCAL GOVERNMENT 12-403
- Contract: A legal written agreement that becomes binding when signed.
- County: means a county of the State or Baltimore City. See
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Personal property: All property that is not real property.
(1) purchase or lease personal property under a multiyear contract that requires the county commissioners to make installment or rental payments during 2 or more fiscal years;
(2) pay interest as part of any installment or rental payments in accordance with the terms of the contract; and
(3) pledge and assign the personal property purchased or leased to secure the obligation.
(b) (1) The County Commissioners of Caroline County may enter into a contract under subsection (a) of this section only if:
(i) the county commissioners have appropriated money sufficient to pay the amount due under the contract during the first fiscal year in which the contract is effective;
(ii) subject to paragraph (2) of this subsection, the contract authorizes the county commissioners to terminate the contract if money sufficient to pay the amount due under the contract for any fiscal year is not appropriated;
(iii) the contract provides that, except if the county commissioners default in payment under the contract, an obligation for payment under the contract is limited to money appropriated for contract payment for that fiscal year; and
(iv) the contract provides that, if the county commissioners default in payment under the contract, the obligation for payment is limited to:
1. money appropriated for contract payments for that fiscal year;
2. any money realized from the personal property purchased or leased under the contract; and
3. any other money legally available for contract payment.
(2) The contract may provide that a contract termination is ineffective if the county commissioners purchase or lease personal property similar or functionally related to the property purchased or leased under the contract within a specified period of time.