1248

LAWS OF MARYLAND.

Valid and
remain In
force until
repealed,
etc.

now in force and not in conflict with the provisions of this
Act, shall be valid and remain in force until the same are re-
pealed, amended or modified by the Mayor and City Council ;
and all contracts entered into for the benefit of said city are
hereby ratified and confirmed, and declared to be binding i7pon
said city.

SEC. 17. And be it enacted, That for the purpose of

Borrow a sum
of money.

providing a water supply for the protection of Ocean City
against fire, and for the use of the residents of said city, and
for the further purpose of providing a sewerage system for
said city, and for other purposes, the Mayor and City Council
of Ocean City are hereby authorized, in their discretion, to
borrow upon the credit of the city of Ocean City an amount
not exceeding the sum of thirty thousand dollars, and to issue
coupon bonds therefor in sums not lees than one hundred dol-
lars and not more than one thousand dollars each, to be signed
by the Mayor of said city, and to be countersigned by the
treasurer of eaid corporation, with the seal of said city attached;
said bonds shall bear interest at the rate of six per centum per
annum, payable semi-annually on the first days of January and
July in each and every year, until the said bonds are paid ; said
bonds shall be forever exempt from all taxation whatsoever,
and shall have printed on them a distinct reference to the Act
directing their issue.

Issued in
series.

SEC. 18. And be it enacted, That said bonds shall be issued
in series from one to thirty, inclusive, according to the aggre-
gate amount issued ; each series consisting of one thousand
ollars of the said amount ; and shall be redeemable as fol-
lows : One thousand dollars thereof in ten years from the
date of their issue, and thereafter annually, one thousand dol-
lars 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 City Council ;
provided, that none of said bonds shall be sold at less than
par.

Net income
to be
applied.

SEC. 19. 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 City
Council are hereby empowered and directed to apply all net
income arising from water rents and the use of the sewerage
system, after paying all necessary expenses for maintaining
the sewerage system, and a proper and sufficient supply of
water, and for betterments and repairs, first to the payment of.
the interest on said bonds, and secondly as to the remainder, if