Bonds issued by municipal authorities -- Tax levy to pay interest and principal

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    (a)    While any bonds issued under Part II of this subtitle are outstanding, the municipal authority annually shall levy a tax against all of the assessable property served within the municipality to pay the principal and interest on the bonds.

    (b)    The tax shall be:

        (1)    Sufficient to pay:

            (i)    When due, the principal and interest on the bonds; or

            (ii)    The part of the principal or interest on the bonds that is not paid for by the levy of the annual front-foot assessment under § 9-713 of this subtitle or by the service charges collected under § 9-714 of this subtitle; and

        (2)    Treated the same as any other municipal tax in every respect, including as to:

            (i)    Priority rights;

            (ii)    Interest;

            (iii)    Penalties; and

            (iv)    Manner of determination, levy, and collection.

    (c)    (1)    Each person involved in the levy or collection of the taxes shall perform the duties promptly and properly.

        (2)    A person may not use any funds collected under this section for any purpose other than the payment of principal and interest on the bonds.


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