WILLIAM DONALD SCHAEFER, Governor Ch. 212

County to enter into or accept related security agreements and specify the form of any
such agreements.

SECTION 5. AND BE IT FURTHER ENACTED, That the net proceeds of the
sale of bonds shall be used and applied exclusively and solely for the cost of
construction or acquisition of hospital facilities for which the bonds are sold. If the net
proceeds of the sale of any issue of bonds exceeds the amount needed to finance the
cost of construction or acquisition of hospital 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 of cancellation of bonds, as the County may determine to be in its best
interest; provided, however, that if the County subsequently adopts a resolution
allocating such excess funds to the cost of construction or acquisition of additional
hospital facilities, such excess funds shall be used for such purposes.

SECTION 6. 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 every 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 any deficiency. The County may apply to the payment of the
principal of and interest on any bonds issued hereunder any funds received by it as loan
payments from the Hospital pursuant to the Loan Agreement described in Section 1 of
this Act, and 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 cost of construction
or acquisition of hospital facilities as defined in this Act and, to the extent of any such
payments or funds received or receivable in any fiscal year that the County determines
to apply to payments of the principal of or interest on the bonds, taxes that might
otherwise be required to be levied under this Act may be reduced proportionately or
need not be levied.

SECTION 7. 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 any bonds issued
under this Act by payment at maturity or the purchase or redemption of bonds in
advance of maturity. 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 herein granted 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 pay any of its outstanding bonds issued under this
Act at maturity, to purchase in the open market any of its outstanding bonds issued
under this Act, prior to their maturity, to redeem prior to maturity any outstanding

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