1568                             Laws of Maryland                      [Ch. 852

(d)  Sale of refunding bonds.—In pursuance of the foregoing, the
Commission has power and authority to offer said bonds for sale at
not less than par, either by competitive bids at public sale or, IF
THE COMMISSION BY RESOLUTION SHALL DETERMINE
THAT A MORE ADVANTAGEOUS PRICE MAY BE OBTAINED
ON SMALLER ISSUES, THEN by private negotiations; to issue
the bonds in serial maturity form or with a single fixed date of
maturity; to make the bonds redeemable in whole or in part by lot
or otherwise after a certain period or date; to issue them subject to
registration as to principal and interest or as to principal only; to
establish and maintain, in accordance with existing law, a sinking
fund for the payment of the maturing principal and interest of the
bonds; to fix the interest rate payable thereon, not exceeding five
per centum (5%) per annum, or to prescribe the manner in which
the rates of interest shall be determined; and generally, in its dis-
cretion, to determine all of the provisions of such bonds.

(e)   Guarantee of refunding bonds.—Said bonds, when, as, and if
issued in accordance with the foregoing provisions, shall be guaran-
teed, by endorsement thereon, as to payment of principal and interest
by Montgomery County or by the County Commissioners of Prince
George's County, as the case may be, in the manner hereinabove
prescribed for all other issues of bonds or notes of the Commission.
All of the bonds shall be issued upon the full faith and credit of the
Commission and upon the full faith and credit of the County guaran-
teeing them. The principal and interest thereof shall be payable,
either directly or through the medium of a sinking fund, from the
proceeds of the collection of the taxes hereinabove or hereinafter
authorized to be levied to provide funds for servicing the bonds or
notes in substitution for which the bonds hereby authorized shall be
issued, but the funds needed for principal and interest payments of
the bonds hereby authorized shall not be preferred in the division
of said tax proceeds over the funds needed for principal and interest
payments on any other issue of bonds or notes payable therefrom in
accordance with law.

(f)   Tax exemption for refunding bonds.—Said bonds hereby au-
thorized, and the interest payable thereon, in the hands of the
persons entitled thereto from time to time, shall be and remain
forever exempt from all State, county, and municipal taxation of
every kind and nature whatsoever in the State of Maryland. None
of the provisions of Sections 10 and 11 of Article 31, Annotated
Code of Maryland (1957 Edition, as amended from time to time),
shall be applicable to or have any bearing upon the manner and
method of sale of the bonds or notes authorized in this or any other
preceding sections of this sub-title.

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

Approved May 3, 1961.