972 LAWS OF MARYLAND.

CHAPTER 574.

AN ACT to authorize and empower the town council of Federals-
burg, in Caroline County, Maryland, to issue bonds to amount
to not exceeding fifteen thousand dollars ($15,000) for the
purpose of improving and extending its system of sewerage,
and of improving its streets, highways, alleys and bridges.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That the Town Council of Federalsburg, in Caroline
County, be and they are hereby authorized and empowered to
issue bonds in the name of said municipal corporation to an
amount not exceeding fifteen thousand dollars ($15,000), the
said bonds to be issued in sums of not less than $100 or more
than $1,000 each, to be sealed with the corporate seal, signed by
the President and countersigned by the Clerk of the Council of
said town, each of said bonds to be payable twenty years after
date, to bearer; said bonds to bear interest in a rate not exceed-
ing five per cent, per annum, payable semi-anually, on the pre-
sentation of the interest coupon to be issued with said bonds;
and said bonds shall be exempted from all State, County and
municipal taxations; provided, however, that the said Town
Council of Federalsburg before issuing such bonds hold a special
election at which the voters of the town shall signify by ballot
whether they favor or oppose such bond issue, and if a majority
oppose such issue it shall not be made or considered authorized.

SEC. 2. And be it enacted, That the proceeds' of the sale of
said bonds, if authorized, none of which are to be sold below
par, shall be expended in improving and extending the sewerage
system of the town of Federalsburg, and improving its streets,
highways, alleys and bridges in such proportions as the Town
Council may think proper.

SEC. 3. And be it enacted, That said Town Council shall
have power and authority, if such bond issue is made, and they
are hereby directed and required to levy all necessary taxes
upon the property within the taxable limits of said town of
Federalsburg, not exceeding the rate of taxation fixed in its.
charter, as the same may be amended, for the purpose of pay-
ing the interest on said bonds, and also the principal at ma-
turity; and the said Town Council shall create a sinking fund
for the purpose of payment of said bonds at maturity, and shall
levy all necessary taxes therefor, and said sinking fund shall
be invested by said Town Council in some safe securities to be-
selected by them.