§ 10-15-105. SURCHARGE.
(a)
Repayment of Clean Energy Loan through surcharge.
(1)
A property owner participating in the Clean Energy Loan Program shall repay the Clean Energy Loan through a surcharge on the property owner's real property tax bill.
(2)
On receipt of written notice from the Clean Energy Loan Program Administrator of the execution of a Clean Energy Loan Financing Agreement, the County shall, within 60 days after the date of the Clean Energy Loan Financing Agreement, add the surcharge to the tax property bill.
(3)
The surcharge shall constitute a first lien on the property from the date it becomes payable until the unpaid surcharge and interest and penalties on the surcharge are paid in full, regardless of a change in ownership, whether voluntary or involuntary.
(4)
A person or entity that acquires property subject to a surcharge assumes the obligation to pay the surcharge.
(5)
The County may assign the surcharge lien to the Clean Energy Loan Program Administrator.
(b)
Included costs in surcharge. The surcharge for a Clean Energy Loan shall include the Clean Energy Loan Obligation and any administrative costs incurred by the County, which shall be the actual expenses incurred to administer the program.
(c)
Information required. The property owner shall execute an agreement with the County and the Clean Energy Lender that will be recorded in land records of the county, at the expense of the owner, which shall include:
(1)
The date the Clean Energy Loan was made to the property owner and the property became subject to the surcharge;
(2)
The term of the Clean Energy Loan and over which the surcharge will apply to the property;
(3)
The amount of the Clean Energy Loan Obligation and estimated County administrative costs for the first year;
(4)
The annual principal and interest amount for each year of the term of the Clean Energy Loan, including any partial year prorated amounts;
(5)
The prepayment requirements and any prepayment premium that may apply to a prepayable Clean Energy Loan;
(6)
Notice that the Clean Energy Loan Obligations and the County's administrative costs will be repaid through a surcharge included on the owner's real property tax bill due and payable on the same date as the real property tax bill;
(7)
Notice that an unpaid Clean Energy Loan surcharge constitutes a first lien on the property that has priority over prior or subsequent liens in favor of private parties and that the surcharge will continue as a lien on the property from the date it becomes payable until the unpaid surcharge and interest and penalties on the surcharge are paid in full, regardless of a change in ownership of the property, whether voluntary or involuntary; and
(8)
Notice that if payments of surcharges are not timely paid, the surcharge will be collectible as a tax lien through the tax sale process authorized under Tax-Property Article, Title 14, Subtitle 8 of the Annotated Code of Maryland and in accordance with Article 11, Title 2, Subtitle 4 of the Code and that an overdue surcharge will be so collected, irrespective of whether real property taxes (or any other taxes, charges, or assessments) are due and owing.
(d)
Event of default of surcharge.
(1)
In the event of default on the Clean Energy Loan surcharge, the County shall collect the lien in accordance with Article 11, Title 2, Subtitle 4 of the Code, irrespective of whether property taxes (or any other taxes, charges, or assessments) are due and owning.
(2)
The County may not incur any liability to the Clean Energy Lender or others in the event of default.
(e)
County role.
(1)
The County shall have no ownership of the surcharges collected except for administrative costs provided under this title.
(2)
The County shall pay all surcharge payments in any calendar month to the applicable Clean Energy Lender or the Clean Energy Loan Program Administrator within 30 days after the end of the month in which such amounts are collected.
(3)
The County shall have no obligation to make payments to any Clean Energy Lender with respect to any Clean Energy Loan Obligation other than that portion of surcharge actually collected from a property owner for the repayment of a Clean Energy Loan.
(4)
Payments received from a property owner shall be credited first to all County taxes, assessments, and charges.
(Bill No. 63-16 , § 1, 10-16-2016)