748                             LAWS OF MARYLAND                      [CH. 369

shall be applicable to the issuance of refunding bonds. Said refund-
ing 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
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 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 certifi-
cates or 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 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 this Act shall take effect
June 1, 1967.

Approved April 14, 1967.

CHAPTER 369
(House Bill 1084)

AN ACT to repeal and re-enact, with amendments, Section 8(2) of
Article 81 of the Annotated Code of Maryland (1965 Replace-
ment Volume), title "Revenue and Taxes," subtitle "What Shall
Be Taxed and Where," amending the laws relating to taxation to
allow the County Commissioners to phase out certain local taxes
on personal property in Frederick County.