926 LAWS OF MARYLAND. [CH. 468

certified check of such amount as the said authorities may
deem necessary and proper; the contract shall be awarded
to the lowest responsible bidder upon the recommendation of
the aforementioned engineer, and the authorities are empow-
ered and authorized to enter into such agreement or contract
with said successful bidder as to safely indemnify the town of
Chesapeake City against any and all loss which may ensue
from the construction of said water supply system and/or
sewerage system. They shall demand bond of the successful
bidder to whatever extent they deem necessary and proper,
but in no case shall the amount thereof be less than the con-
tract price.

SEC. 3. And be it further enacted. That for the purpose of
providing funds for the construction and establishment of
said water supply system, and/or sewerage system and for the
purchase or condemnation of properties and rights-of-ways,
said authorities are authorized and empowered to issue bonds
in such amounts as they may deem necessary to carry on said
work or any part of it, provided, however, that at no time
shall the amount of outstanding bonds so issued be more than
Sixty Thousand Dollars ($60, 000). Said bonds shall be of
such type and denomination and bear such rate of interest,
not exceeding four (4) percentum per annum as said authori-
ties may determine upon, provided, that the interest on said
bonds shall be payable semi-annually and said bonds shall
mature at a period not exceeding thirty-five years from the
date of issuance, and shall be forever exempt from State,
county and municipal taxation, and shall be a lien upon all
assessable property within the said town of Chesapeake City.
The bonds may be dated as the authorities may decide, may
be either serial bonds or sinking fund bonds, and the authori-
ties are authorized and empowered to sell the bonds in any
way they may deem proper; they may be sold either locally
over the counter, or by advertising, to a responsible under-
writer after advertisement, if this latter method is elected.

SEC. 4. And be it further enacted, That for the purpose of
retiring the bonds issued under this Act and of paying inter-
est thereon, said municipal authorities may raise the neces-
sary funds to meet such obligations, either by levying a tax
against all the assessable property within the municipality
served annually so long as any of said bonds are outstanding,
or may provide for the whole or any part by the levy of a
front foot assessment charge on all property abutting on a
street, road, alley or right-of-way in which a water main or
sewer is laid, or may provide for both the levy of a tax and
the levy of a front foot assessment charge, as above men-
tioned. The tax so levied shall be sufficient in amount to