LLOYD LOWNDES, ESQUIRE, GOVERNOR.

July in each and every year, until the said bonds are paid ;
eaid bonds shall be forever exempt from all taxation whatso-
ever, except for State purposes, and shall have printed on them
a distinct reference to the act and the election directing their
issue, and any subsequent transfer of said bonds may be regis-
tered or not at the option of any purchaser or purchasers.

191

SEC. 4. And be it enacted, That said bonds shall be issued
in eighteen series each consisting of one thousand dollars of
the said amount and shall be redeemable as follows: One
thousand dollars thereof in ten years from the date of their issue
and thereafter, annually, one thousand dollars in each and
every year until the whole amount so issued shall have been
paid; and said bonds shall be sold at public or private sale in
the discretion of said Mayor and Council; provided, that none
of said bonds shall be sold at less than par.

Redemption
of bonds.

SEC. 5. And be it enacted, That for the purpose of redeem-
ing said bonds at their maturity, and for securing the prompt:
payment of the interest thereon, the said Mayor and Council
are hereby empowered and directed to apply all net income
arising from water rents after paying all necessary expenses
for maintaining a proper and sufficient supply of water and
for betterments and repairs, first, to the payment of the inter-
est on said bonds, and secondly, as to the remainder, if there
be any, the same to be invested in a sinking fund for the pay-
ment of said bonds as they respectively mature, the coupons on
said bonds shall be receivable by said Mayor and Council in
payment of taxes due to said town. In the event that the net
amount received from said water rents after deducting the
aforesaid expenses referred to in this section shall not be suf-
ficient in amount to pay the interest on said bonds and the
principal thereof as it shall become due, the said Mayor and
Council shall annually levy on the taxable property of said
town, such sums of money as shall, in their discretion, be
necessary for the prompt payment of the interest on said
bonds, and the principal thereof, when the same may
become due, and any surplus on hand at any time arising from
such levy shall be by the said Mayor and Council invested in
some safe securities as a sinking fund, which shall not at any
time be diverted from the purposes of this act.

Payment ot
interest and
principal.

SEC. 6. And be it enacted, That the money arising from the
sale of said bonds shall be paid to the Mayor and Council of
said town, and by them be deposited in the First National
Bank of Snow Hill, and shall only be drawn therefrom on

Registry of
bonds to be
kept.