J. MILLARD TAWES, GOVERNOR                             1647

be applicable to the issuance of refunding bonds. Said refunding
bonds may be issued by the County for the purpose of providing it
with funds to purchase in the open market any of its outstanding
bonds issued hereunder, prior to the maturity thereof, or for the
purpose of providing it with funds for the redemption prior to ma-
turity of any outstanding bonds issued hereunder which are, by their
terms, redeemable. The resolution authorizing the issue of any such
refunding bonds shall describe the issue or issues of bonds of the
County so to be refunded, and no issue of such refunding bonds shall
exceed in amount the par amount of such bonds so described in said
resolution. No such refunding bonds shall actually be delivered to
the purchaser or purchasers thereof more than six (6) months in
advance of redemption date or dates of bonds to be redeemed and
refunded and the proceeds of the sale of any such refunding bonds
shall be segregated and set apart by the County as a separate trust
fund to be used solely for the purpose of paying the purchase or
redemption prices of the bonds to be refunded.

Sec. 7. And be it further enacted, That, in the issuance of any of
the bonds authorized hereby, the County may, prior to the preparation
of definitive bonds or obligations, issue interim certificates or tem-
porary bonds, with or without coupons, exchangeable for definitive
bonds when such bonds or obligations have been executed and are
available for delivery, provided, however, that any such interim cer-
tificates or temporary bonds shall be issued in all respects subject to
the restrictions and requirements set forth herein. The County may,
by appropriate resolution, provide for the replacement of any bonds
issued hereunder which shall have become mutilated or be destroyed
or lost upon such conditions and after receiving such indemnity as
the County may think it proper and necessary to stipulate and require.

Sec. 8. And be it further enacted, That any and all obligations
issued pursuant to the authority of this Act, the interest payable
thereon, and the income derived therefrom in the hands of the holders
thereof from time to time, shall be and is hereby declared to be
exempt from State, county and municipal taxation of every kind and
nature whatsoever in the State of Maryland.

Sec. 9. And be it further enacted, That the authority to borrow
money and to issue bonds conferred on the County by Chapter 634
of the Acts of the General Assembly of Maryland passed at its January
Session in the year 1957 and the authority to borrow money and to
issue bonds conferred on the County by Chapter 634 of the Acts of the
General Assembly of Maryland passed at its January Session in the
year 1959 is hereby continued to the extent that the same has not
heretofore been exercised, and nothing herein contained shall be
construed to impair, in any way whatsoever, the validity of the bonds
which may be issued by the County under the authority of said Acts.

Sec. 10. And be it further enacted, That this Act shall take effect on
the first day of June, 1961.

Approved May 8, 1961.