MARVIN MANDEL, Governor                      1437

hereof or of said bonds, be deemed to be negotiable instruments, and
shall have and possess all the attributes of negotiable instruments,
under the laws of this State. All bonds issued pursuant to the au-
thority of this Act, their transfer and the income therefrom shall at
all times be free from taxation by the State of Maryland or by any
of its political subdivisions or by any town or municipal corporation
or by any other public agency of the State of Maryland.

Sec. 4. And be it further enacted, That from the actual proceeds
of sale of any issue of said bonds there shall first be paid the cost
of preparing the same, and all other outlays and expenses incurred
by the County Commissioners in connection with the issue of said
bonds. In addition there shall be deducted from said proceeds all
amounts received on account of accrued interest which shall be set
apart by the County Treasurer for application on account of the
first maturing interest liability on said bonds, and in addition said
County Treasurer shall set apart any premium received on the sale
of any issue of said bonds which shall be used for the purpose of
paying the principal thereof at maturity or on prior redemption. The
entire balance of said proceeds shall be retained by the County
Treasurer until needed to pay for the purposes specified in Section 1
hereof. Said payments for the aforesaid purposes, and for no other
purposes, shall be made from time to time by the County Treasurer
to the Board of Education of St. Mary's County upon the order of
the County Commissioners of St. Mary's County. Said County Com-
missioners shall not issue any such order except upon written notifi-
cation from said Board of Education that in its best judgment and
discretion an expenditure for any of the aforesaid purposes is neces-
sary, such notification setting forth the approximate amount of each
expenditure and the specific use to be made of it. Said Board of Edu-
cation shall receive and expend the money so paid to it only for the
purposes authorized by Section 1 hereof, and said Board shall ac-
count for said money so paid to it and the expenditures thereof in
the same manner as it accounts for other moneys passing through its
hands.

Sec. 5. And be it further enacted, That for the purpose of paying
the maturing principal of and interest on any bonds issued pursuant
to the authority of this Act, and for the purpose of redeeming said
bonds prior to their respective maturities, the County Commissioners
of St. Mary's County shall levy annually upon all property within
the corporate limits of said County, assessable for unlimited taxation,
ad valorem taxes in rate and amount sufficient to provide for said
purposes. In the event any such issue of bonds are sold as term bonds,
payable all at one time, said County Commissioners of St. Mary's
County shall, by the resolution authorizing said bonds, establish a
sinking fund in the custody and control of the County Treasurer, and
thereafter said County shall annually levy the ad valorem taxes