10 LAWS OF MARYLAND. [CH. 3

of the proceeds thereof the principal of the said bonds which
will become due in the year 1927.

SEC. 3. And be it further enacted, That the bonds hereby
authorized shall be known as the "Refunding and General Im-
provement Bonds authorized by the Legislature of 1927, " and
they shall be dated as of the date of their issue. They shall be
sealed with the seal of the said town, signed by the Mayor and
countersigned by the Treasurer, and shall bear interest not ex-
ceeding six per centum per annum, payable semi-annually.

SEC. 4. And be it further enacted, That the bonds hereby
authorized to be issued shall be exempt from State, county and
municipal taxation.

SEC. 5. And be it further enacted, That the bonds hereby
authorized shall be issued so that Five Hundred Dollars
($500. 00) worth of them shall mature at the end of the third
year after the date of their issue and Five Hundred Dollars
($500. 00) more of them shall mature at the end of each suc-
ceeding year until the whole issue shall have been retired.

SEC. 6. And be it further enacted, That the bonds issued
hereunder shall be the direct obligation of the said town, and
the said town shall be responsible for the payment therefor.
That for the purpose of redeeming said bonds and paying the
interest thereon, the Mayor and Common Council are hereby
authorized and directed to levy on all property situated in the
town limits of said town such a sum as may be necessary to
pay the interest on said bonds and to create a sinking fund
sufficient to pay all of said bonds as they mature, said tax
herein authorized to be in addition to all taxes now authorized
by law. The said sinking fund to be kept separate from all
other town funds and used for no other purpose than for the
payment of said bonds.

SEC. 7. And be it further enacted, That the Mayor and
Common Council shall pay out of the proceeds of the bonds
hereby authorized the principal of the bonds of the said town
which will become due in the year 1927, and the cost or costs
of such general improvement or improvements in the said town
as they, in the exercise of their judgment, have deemed it
necessary to issue the bonds for.

SEC. 8. And be it further enacted, That this Act shall take
effect June 1, 1927.

Approved February 17, 1927.