WM. PRESTON LANE, JR., GOVERNOR. 741

town Twenty-five Thousand Dollars ($25,000.00) for the
purpose of water system and street improvements, to issue
its bonds therefor and to levy municipal taxes to pay the
principal and interest of said bonds.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That the Mayor and Council of Mount Airy be and it is
hereby authorized and empowered to borrow on. the faith and
credit of said town the amount of Twenty-five Thousand Dollars
($25,000.00) and from time to time to issue and sell bonds
not exceeding said sum of $25,000.00, said bonds to be signed
by the Mayor and countersigned by the Clerk of said town and
to be sealed with the seal of said town. The entire proceeds
of such bonds, after payment of costs of engraving and all
other incidental costs and expenses connected with the issuance
of such bonds, shall be used, either alone or in connection with
any federal funds which may be made available, to improve
the water system and streets of said town, the particular
purpose or purposes to be determined by said Mayor and
Council.

SEC. 2. And be it further enacted, That said bonds shall be
issued in such denominations as shall be determined by the
said Mayor and Council of Mount Airy and shall bear interest
at a rate to be determined by said Mayor and Council, not in
excess of three and one-half per cent. (3 1/2%) per annum. The
dates of issuance, the portions of said bonds to be issued
from time to time at specified dates, and the time and place
for the payment of said bonds and interest shall all be within
the determination of said Mayor and Council, provided, how-
ever, that no bonds shall be issued after January 1, 1950. The
issue of said bonds must comply strictly with the provisions
of Sections 35 and 36 of Article 31 of the Annotated Code of
Maryland (1939 Edition), except that said bonds shall be
callable at any time and that at least $1,000.00 of such bond
issue must be retired annually under the serial maturity plan.
Such bonds shall be exempt from all State, county and munici-
pal taxation and shall have printed on them a distinct refer-
ence to the Act authorizing their issuance.

SEC. 3. And be it further enacted, That the Mayor and
Council of Mount Airy be and it is hereby authorized and
directed to levy each year so long as said bonds are outstand-
ing and not paid a tax sufficient to redeem the same at their
maturity and to pay the interest thereon. Said tax shall
become a lien on the property assessed and shall be collected
in the same manner as other taxes, the proceeds therefrom to
be kept in a special fund and in no case to be used for any