1056                             Laws of Maryland                       [Ch. 701

shall at all times be free from taxation by the State of Maryland
or by any of its political sub-divisions or by any town or municipal
corporation or by any other public agency of the State of Maryland.

Sec. 4. And be it further enacted, That from the actual pro-
ceeds of sale of any issue of said bonds there shall first be paid the
cost of preparing the same, and all other outlays and expenses
incurred by the County Commissioners in connection with the issue
of said bonds. In addition there shall be deducted from said proceeds
all amounts received on account of accrued interest which shall be
set apart by the County Treasurer for application on account of
the first maturing interest liability on said bonds, and in addition
said County Treasurer shall set apart any premium received on the
sale of any issue of said bonds which shall be used for the purpose
of paying the principal thereof at maturity or on prior redemption.
The entire balance of said proceeds shall be retained by the County
Treasurer until needed to pay for the purposes specified in Section
1 hereof. Said payments for the aforesaid purposes, and for no
other purposes, shall be made from time to time by the County
Treasurer to the Board of Education of Cecil County upon the
order of the County Commissioners of Cecil County. Said County
Commissioners shall not issue any such order except upon written
notification from said Board of Education that in its best judg-
ment and discretion an expenditure for any of the aforesaid pur-
poses is necessary, such notification setting forth the approximate
amount of each expenditure and the specific use to be made of it.
Said Board of Education shall receive and expend the money so paid
to it only for the purposes authorized by Section 1 hereof, and said
Board shall account for said money so paid to it and the expendi-
tures thereof in the same manner as it accounts for other moneys
passing through its hands.

Sec 5. And be it further enacted, That for the purpose of paying
the maturing principal of and interest on any bonds issued pursuant
to the authority of this Act, and for the purpose of redeeming said
bonds prior to their respective maturities, the County Commissioners
of Cecil County shall levy annually upon all property within the cor-
porate limits of said County, assessable for unlimited taxation, ad
valorem taxes in rate and amount sufficient to provide for said pur-
poses. In the event any such issue of bonds are sold as term bonds,
payable all at one time, said County Commissioners of Cecil County
shall, by the resolution authorizing said bonds, establish a sinking
fund in the custody and control of the County Treasurer, and there-
after said County shall annually levy the ad valorem taxes above
prescribed in rate and amount sufficient to pay the interest on said
bonds, due in each year, and sufficient to pay into such sinking fund
annual deposits which, together with any earnings of such sinking
fund or increments thereon, will be sufficient to provide for the pay-
ment in full of the principal of said term bonds at maturity. In
addition, the County Commissioners of Cecil County is hereby author-
ized and empowered to utilize for the payment of any such principal
and interest any part not previously pledged of any moneys received
by the Board of Education of Cecil County from the State of Mary-
land under the provisions of Section 222 of Article 77 of the Anno-
tated Code of Maryland (1957 Edition), providing for an incentive