220

LAWS OF MARYLAND.

Bonds

cancelled.

purchase and redemption of any of said bonds as may be offered
for sale and redemption, and upon the purchase of any such
bonds by the said Mayor and City Council of Laurel they
shall be immediately cancelled by stamping across their face
"Cancelled by the Sinking Fund," and no portion of said
sinking fund so levied for shall ever be diverted to any other
purpose than to the purchase and liquidation of said bonds,
and should the said Mayor and City Council, or any other
person having charge of said sinking fund, suffer or permit
the same or any part thereof to be diverted from or applied to
any other purpose than the investment for the purchase and
redemption of said bonds, the party so offending shall be

Sum of money
for sinking
fund.

deemed guilty of a misdemeanor, and on conviction thereof
before a justice of the peace shall be subject to a fine of not
less than the amount so misapplied or diverted. The money
collected each year by the Treasurer on account of taxes to
the extent of the said sum of five hundred dollars shall be set
apart for said sinking fund, and a separate account be kept by
the said Mayor and City Council of Laurel and deposited to
the credit of said fund, and no part of which shall be chargeable
to insolvencies on account of failure of assessment or collec-
tions.

Money from
sale of
bonds.

SEC. 6. And be it enacted, That the money arising from
the sale of said bonds (which said bonds shall be sold either
at auction or by sealed bids, after due advertisement thereof,
to the highest responsible bidder,) shall be deposited in bank
to the credit of the said Water Board of Laurel, and subject
to the check of the said Water Board, or three-fourths of
the members thereof, and the clerk to said Mayor and City
Council and the Treasurer of said town shall each keep in a
book or books, to be specially provided for the purpose, a
full registry of the bonds sold, the serial number of the bonds,
and the names and addresses of the purchasers and amount
realized on sales, and any transfers or assignments of the
same

Authority
to pay for
construction.

SEC. 7. And be it enacted, That the fund realized from the
sale of said bonds shall be applied to the purposes of this
Act, and shall be paid by check, signed by the said Water
Board, or three-fourths of the members thereof, and the said
Water Board of Laurel is hereby authorized and empowered
to pass such orders for the payment of moneys due for the
construction of the said water works, or to the contractor or
contractors for the construction of the same as shall from
time to time be due or earned by the contractor or con-
tractors in the prosecution of the said works, and also from