Theodore R. McKeldin, Governor                       93

suant to said resolution shall recite in substance that said bond,
including interest thereon, is payable from the revenue pledged to
the payment thereof, and that said bond does not constitute a debt
to the municipality within the meaning of any constitutional or
statutory limitation; (b) In the absence of language in the resolution
authorizing the issuance of bonds hereunder as provided in Section
405E as aforesaid, or in the absence of reciting the limitations of
liability to special revenue as provided in the aforegoing subsection
405H(a), then the general credit of the municipality shall be deemed
secondarily liable for the payment of any bonds so issued hereunder.

405I (Undertakings to be Self-Supporting) The governing body
of a municipality issuing bonds pursuant to this Act shall prescribe
and collect reasonable rates, fees, benefit assessments, or charges
for the services, facilities and commodities of sewerage facilities,
and shall revise such rates, fees or charges from time to time when-
ever necessary so that such facilities shall be and always remain
self-supporting. The rates, fees or charges prescribed shall be such
as will produce revenue at least sufficient (a) to pay when due all
bonds and interest thereon, for the payment of which such revenue
is or shall have been pledged, charged or otherwise encumbered, in-
cluding reserves therefor, and (b) to provide for all expenses of
operation and maintenance of such sewerage facilities, including
reserves therefor.

405J (Use of Revenue from Sewerage Facilities) That any
municipality issuing bonds pursuant to this Act for the planning,
acquisition, purchase, construction, reconstruction, improvement,
betterment or extension of any sewerage facilities shall have the
right to appropriate, apply or expend the revenue of such facilities
for the following purposes: (a) to pay when due all bonds and in-
terest thereon, for the payment of which such revenue is or shall
have been pledged, charged, or otherwise encumbered, including
reserves therefor, (b) to provide for all expenses of operation and
maintenance of such facilities, including reserves therefor, (c) to
pay and discharge notes, bonds or other obligations and interest
thereon, not issued under this Act for the payment of which the
revenue of such facilities is or shall have been pledged, charged or
encumbered, (d) to pay and discharge notes, bonds, or other obliga-
tions and interest thereon, which do not constitute a lien, charge or
encumbrance on the revenue of such facilities, which shall have
been issued for the purpose of financing the planning, acquisition,
purchase, construction, reconstruction, improvement, betterment, or
extension of such facilities, and (e) to provide a reserve for better-
ments to such facilities. Unless and until adequate provision has
been made for the foregoing purposes, no municipality shall have the
right to transfer the revenue of such sewerage facilities to its general
funds.

405K (Refunding of Bonds) Municipalities are hereby author-
ized to issue refunding revenue bonds to refund, pay or discharge all
or any part of its outstanding revenue bonds, issued to finance the
acquisition or construction of sewerage facilities, or any part of
such facilities, including interest thereon, if any, in arrears or about
to become due. The relevant provisions in this Act pertaining to
revenue bonds shall be equally applicable in the authorization and