J. MILLARD TAWES, GOVERNOR                          1285

CHAPTER 745
(House Bill 702)

AN ACT to repeal and re-enact Section 129 of Howard County Code
(Everstine's 1957 Edition), being Article 14 of the Code of Public
Local Laws of Maryland, title "Howard County", sub-title "Metro-
politan Commission", increasing the permitted interest rate on
bonds from four per centum to five per centum per annum.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 129 of the Howard County Code (Everstine's 1957 Ed-
ition) , being Article 14 of the Code of Public Local Laws of Maryland,
title "Howard County", sub-title "Metropolitan Commission", be, and
the same is hereby repealed and re-enacted, with amendments, to read
as follows:

129. BONDS AUTHORIZED; SPECIFICATIONS.

For the purpose of providing funds for the design, construction,
establishment, purchase or condemnation of water supply, sewerage
and drainage systems in any of the sub-districts, said Commission
is authorized and empowered to issue bonds, from time to time upon
the faith and credit of Howard County, in such amounts as it may
deem to be necessary to carry on its work, but at no time shall the
total issue of bonds in any sub-district for all purposes under this
sub-title exceed twenty per centum of the total value of the prop-
erty assessed for County taxation purposes within said sub-district.
Said bonds shall be serial bonds, issued upon the serial maturing
plan and in such denomination or denominations as shall be deter-
mined by the Commission, said bonds may be redeemable before
maturity at the option of the Commission, at such price and under
such terms and conditions as may be fixed by the Commission prior
to the issuance of said bonds, shall bear interest at a rate not ex-
ceeding [four] five per centum, per annum, payable semi-annually,
and shall mature in not more than thirty years after date of issue
and shall be forever exempt from State, City and County taxation.
They shall be issued under the signature and seal of the Commission
and shall be guaranteed as to payment of principal and interest by
the County Commissioners of Howard County, which guarantee shall
be endorsed on each of said bonds in the following language: "The
payment of interest when due and the principal at maturity is guaran-
teed by Howard County, Maryland." Such endorsement shall be
signed on each of said bonds by the President and by the Clerk of
the Board of County Commissioners of said County within ten days
after the bonds are presented by the Commission to them for en-
dorsement. At any time prior to the issuance of any such bonds the
County Commissioners are hereby authorized and directed to furnish
to the Commission a sum not exceeding Five Thousand Dollars
($5,000.00), which shall be repaid out of the first available moneys
derived from the sale of the first bonds issued, if any.

Sec. 2. And be it further enacted. That this Act shall take effect
June 1, 1961.

Approved May 3, 1961.