WILLIAM DONALD SCHAEFER, Governor                         S.B. 796

(a)     Bohemia Manor Middle Junior Senior High School in Chesapeake City and
Cecil Manor Elementary School in Elkton, $5,775,000; and

(b)     Other schools and property of the Board of Education in Cecil County,
$125,000 for removal and replacement of fixtures, and other repairs.; and

(c)      County bridges at various sites, $1,400,000.

If the net proceeds of the sale of any issue of bonds exceeds the amount needed to
finance the public facilities described in the resolution, the excess funds shall be applied
to the payment of the next principal maturity of the bonds or to the redemption of any
part of the bonds which have been made redeemable or to the purchase and cancellation
of bonds, unless the County adopts a resolution allocating the excess funds to the
construction, improvement, or development of other public facilities.

SECTION 5. AND BE IT FURTHER ENACTED, That the bonds hereby
authorized shall constitute, and they shall so recite, an irrevocable pledge of the full faith
and credit and unlimited taxing power of the County to the payment of the maturing
principal of and interest on the bonds as and when they become payable. In each and
even' fiscal year that any of the bonds are outstanding, the County shall levy or cause to
be levied ad valorem taxes upon all the assessable property within the corporate limits of
the County in rate and amount sufficient to provide for or assume the payment, when
due, of the principal of and interest on all the bonds maturing in each such fiscal year
and, if the proceeds from the taxes so levied' in any fiscal year prove inadequate for such
payment, additional taxes shall be levied in the succeeding fiscal year to make up and a
deficiency. The County may apply to the payment of the principal of and interest on any
bonds issued under this Act any funds received by it from the State of Maryland, the
United States of America, any agency or instrumentality of either, or from any other
source. If such funds are granted for the purpose of assisting the County in financing the
construction, improvement, development, or renovation of the public facilities defined in
this Act and, to the. extent of any such funds received or receivable in any fiscal year, taxes
that might otherwise by required to be levied under this Act may be reduced or need not
be levied.

SECTION 6. AND BE IT FURTHER ENACTED, That the County is hereby
further authorized and empowered, at any time and from time to time, to issue its bonds
in the manner hereinabove described for the purpose of refunding, upon purchase or
redemption, any bonds issued under this Act. The validity of any refunding bonds shall in
no way be dependent upon or related to the validity or invalidity of the obligations being
refunded. The powers granted under this Act with respect to the issuance of bonds shall
be applicable to the issuance of refunding bonds. Such refunding bonds may be issued by
the County for the purpose of providing it with funds to purchase in the open market any
of its outstanding bonds issued under this Act, prior to their maturity, or for the purpose
of providing it with funds for the redemption prior to maturity of any outstanding bonds
which are, by their terms, redeemable. The proceeds of the sale of any refunding bonds
shall be segregated and set apart by the County as a separate trust fund to be used solely
of the purpose of paying the purchase or redemption prices of the bonds to be refunded.

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