LLOYD LOWNDES, ESQUIRE, GOVERNOR.

261

SEC. 2. Be it further enacted, That for the purposes of the
erection of the extension of the Maryland penitentiary and
the equipment thereof, a loan be and the same is hereby
created, to be called the penitentiary loan, to the amount of
five hundred thousand dollars; and the said loan hereby
created shall, in all its parts, bear date the first day of July,
1896, and shall bear interest at a rate to be fixed by the Gover-
nor, the Comptroller of the Treasury and the Treasurer of this
State, or a majority of them, not to exceed 3.65 per centum
per annum, payable on the first days of January and July in
each and every year, and the said loan and every part thereof,
and the interest payable thereon, shall be and remain exempt
from all State, county and municipal taxation, and the princi-
pal amount of the said loan shall be redeemable at the pleasure
of the State of Maryland after the first day of July, in the
year 1906.

Creation ot
loan.

SEC. 3. Be it further enacted, That the Governor, Comp-
troller of the Treasury and Treasurer, or a majority of them,
be and they are hereby authorized and directed to have pre-
pared proper certificates of indebtedness of this State in good
and sufficient form to the aggregate amount of five hundred
thousand dollars, as evidences of such loans; such certificates
of indebtedness shall each bear date the first day of July, 1896,
and shall not be issued for less sums than one hundred dollars
each, or some multiple thereof, except in cases where the due
execution of the provisions of this act may require the issue of
certificate or certificates of indebtedness expressing in part a
fraction or fractions of one hundred dollars; each of said
certificates of indebtedness shall be signed by the Treasurer of
the State, and countersigned by the Comptroller of the Treas-
ury thereof, and shall bear interest at a rate not to exceed 3.65
per centum per annum, payable semi-annually on the first day
of January and the first day of July, of each year; such pro-
portion of such certificates of indebtedness shall be registered,
and such portion shall have interest coupons attached thereto,
as said Governor, Comptroller of the Treasury or Treasurer,
or a majority of them may determine; each of said certificates
of indebtedness shall be payable fifteen years after the date
thereof, but shall be redeemable at the pleasure of the State of
Maryland, after the first day of July in the year 1906, and
each of said certificates of indebtedness, and the respective
debts evidenced thereby, shall be exempt from all State, county
and municipal taxation.

To issue cer-
tificates ot
indebted-
ness.