ALLEGANY COUNTY.

of the denomination of One Thousand ($1,000.00) Dollars, and shall be
exempt from State, county and municipal taxes; said bonds to be signed
by the Mayor of the City of Frostburg, and attested by the City Clerk,
with the corporation seal of the city thereto attached, and to bear interest
at the rate of not more than five per cent, per annum, payable semi-an-
nually, for which interest proper coupons are to be attached to said bonds.

1929, ch. 345, sec. 2.

271. The said Mayor and Councilmen shall, by ordinance, cause ad-
vertisement to be made, setting the time and place where bids conditioned
as may be required by said ordinance will be opened for the sale of said
bonds, reserving unto itself the right to reject any and all bids. Said bids
shall be filed with the City Clerk of the City of Frostburg, and at the time
and place advertised shall be opened by him in the presence of the Mayor
and Councilmen, and if said bids be satisfactory to the Mayor and Coun-
cilmen, it shall sell said bonds, or any part thereof, to the highest bidder
or bidders, of whose ability to comply with the terms of sale the said
Mayor and Councilmen in its discretion is satisfied.

1929, ch. 345, sec. 3.

272. Upon the sale of said bonds, the proceeds thereof shall be placed
in a separate fund, and used by the Mayor and Councilmen for the purpose
of increasing, improving, repairing, extending and other necessary pur-
poses heretofore and hereafter affecting the water supply of the City of
Frostburg, and for no other purpose or purposes.

1929, ch. 345, sec. 4,

273. The Mayor and Councilmen shall charge and collect for the
water supplied to the residents of the City of Frostburg, and vicinity, a
sum sufficient to pay the expenses heretofore and hereafter necessary for
the operating of the water system of Frostburg, Maryland, and to pay for
the redemption of the bonds now outstanding against the City of Frost-
burg, for water improvements, and this bond issue, and the interest on al'
the bonded indebtedness of the City of Frostburg, pertaining to the water
system of said city, and the money so charged and collected shall be kept
and maintained in a fund separate, it being the intention of this Act to
enable the Mayor and Councilmen of Frostburg to so operate the water
supply of said city that the revenue therefrom shall be used to defray the
heretofore or hereafter expenses connected therewith, provided if the
receipts from the Water Department shall be less than the expenses in any
year or years, the Mayor and Councilmen shall levy from time to time
such amount on the assessable property of the city as may be necessary to
pay the bonds issued hereunder, and the interest thereon, or are empowered
to borrow an amount not exceeding Ten Thousand ($10,000.00) Dollars
in any one year, and to pledge the credit of the city for the security of
the same, provided, however, that the water rate shall be increased for the
succeeding year sufficient to pay off such deficit.
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