88                           LAWS OF MARYLAND.                   [CH. 56

him in the presence of the Mayor and Councilmen, and if said
bids be satisfactory to the Mayor and Councilmen, it shall sell
said bonds, or any part thereof, to the highest bidder or bidders,
of whose ability to comply with the terms of sale said Mayor
and Councilmen in its discretion is satisfied.

SEC. 4. And be it further enacted, That upon the sale of
said bonds the proceeds thereof shall be placed in a separate
fund and used by the Mayor and Councilmen for the purpose
of increasing, improving, repairing, extending, establishing,
altering, maintaining and operating the water system and sup-
ply of said city and for all other necessary purposes now or
hereafter affecting the water supply of the City of Frostburg,
and for no other purpose or purposes.

SEC. 5. And be it further enacted, That the Mayor and
Councilmen of Frostburg shall charge and collect for the water
supplied to the residents of the City of Frostburg and vicinity
a sum sufficient to pay the expenses heretofore and hereafter
necessary for the operation of the water system of Frostburg,
Maryland, and to pay for the redemption of the bonds now
outstanding against the City of Frostburg for water improve-
ments, and this bond issue and the interest on all the bonded
indebtedness of the City of Frostburg pertaining to the water
system of said city, and the money so charged and collected
shall be kept and maintained in a separate fund, it being the
intention of this Act to enable the Mayor and Councilmen of
Frostburg to operate the water supply of said city, that the
revenue therefrom shall be used to defray the heretofore or
hereafter expenses connected therewith, provided if the re-
ceipts from the Water Department shall be less than the ex-
penses in any year or years, the Mayor and Councilmen of
Frostburg shall levy from time to time such amount upon the
assessable property of the city as may be necessary to pay the
bonds issued hereunder and the interest thereon, or are em-
powered to borrow an amount not exceeding twenty thousand
dollars ($20, 000. 00) in any one year, and to pledge the credit
of the city for the security of the same; provided, however,
that the water rate shall be increased for the succeeding year
sufficient to pay off such deficit.

SEC. 6. And be it further enacted, That the bonds hereunder
authorized shall be issued in addition to and exclusive of the
seven per cent, bonded indebtedness permitted on the assessed