640                         LAWS OF MARYLAND.                  [CH. 238

hereby authorized and directed to borrow on the faith and
credit of the town of Federalsburg the sum of seventy-two thou-
sand dollars ($72, 000) and to issue coupon bonds therefor in
sums of one thousand dollars ($1, 000) to be signed by the Mayor
of Federalsburg and countersigned by the Clerk of Federals-
burg, with the seal of said municipal corporation affixed thereto,
and said bonds shall be designated as "Federalsburg Refund-
ing Bonds" and shall be numbered consecutively from one (1)
to seventy-two (72) inclusive, and shall bear interest at a rate
not exceeding five per cent per annum, payable semi-annually
on the first day of November and May of each and every year
accounting from May 1st, 1931, and said bonds shall be exempted
from all taxation for State, county and municipal purposes in
the State of Maryland and shall have printed on them a distinct
reference to this Act authorizing their issue.

SEC. 2. And Be IT further enacted, That the said bonds to be
issued under this Act shall mature in their numerical order,
three thousand dollars ($3, 000) annually in each and every year
beginning May 1st in the year 1936, and that said bonds, with
interest thereon, shall be paid and cancelled by the said Mayor
and Council of Federalsburg in the amount of three thousand
dollars ($3, 000) during each and every year beginning as afore-
said until the whole of said bonds shall have been paid, and the
date of issue^shall be the same on all bonds under this Act, which
date shall be May 1st, 1931.

SEC. 3. And Be IT further enacted, That the Mayor and Coun-
cil of Federalsburg are authorized and empowered to sell said
bonds to the highest bidder upon sealed proposals after having
given at least ten days' prior notice by advertisement in some
newspaper published in Caroline County and by such other ad-
vertisement as the Mayor and Council of Federalsburg deem
advisable, but the right is reserved unto the Mayor and Council
of Federalsburg to reject any and all bids. If no bids are re-
ceived after such advertisement, or if all of the bids received
are rejected by the said Mayor and Council of Federalsburg, the
said Mayor and Council of Federalsburg are authorized and
empowered to sell said bonds by private sale at not less than
par and accrued interest.

SEC. 4. And Be it further enacted, That the proceeds arising
from the sale of said bonds shall be applied: first, to the pay-
ment of twenty-four thousand dollars ($24, 000) of Federalsburg
water works promissory notes due May 1st, 1931; second, to the
payment of twenty-six thousand dollars ($26, 000) of outstand-
ing promissory notes issued to complete the construction of the
water works system and the Federalsburg Municipal Building,,