J. MILLARD TAWES, GOVERNOR                             729

the issuance of bonds, and also the limitations herein on such powers
shall be applicable to the issuance of refunding bonds. Said refund-
ing bonds may be issued by the County for the purpose of pro-
viding 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 maturity 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 pur-
pose 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 prep-
aration of definitive bonds or obligations, issue interim certificates
of temporary 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 certificates or temporary bonds shall be issued in all re-
spects subject to the restrictions and requirements set forth herein.
The County may, by appropriate resolution, provide for the replace-
ment of any bonds issued hereunder which shall have become muti-
lated or be destroyed or lost upon such conditions and after re-
ceiving 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 783
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 have been issued by the County
under the authority of said Act.

Sec. 10. And be it further enacted, That this Act shall take effect
June 1, 1961.

Approved April 24, 1961.