Marvin Mandel, Governor                        1165

bonds, with or without coupons, exchangeable for definitive bonds
when such bonds have been executed and are available for delivery,
and/or (ii) for the issuance and sale of its bond anticipation notes,
the principal of and interest on the notes to be made payable to the
bearer or registered holder thereof out of the first proceeds of sale
of any bonds issued under this subheading, and the resolution of the
Secretary authorizing the issue of such notes may make provision
for the issuance of such notes in series as funds are required and for
the renewal of such notes at maturity with or without resale. The
issuance of such notes and the details thereof, the rights of the
holders thereof, and the rights, duties and obligations of the Depart-
ment in respect thereto, shall be governed by the same provisions of
this subheading relating to the issuance of bonds in anticipation of
the sale of which the notes were issued, insofar as those provisions
may be applicable.

8.    Tax exemption.

The bonds, notes or other evidences of indebtedness of the Depart-
ment issued pursuant to the authority of this subheading, their trans-
fer, the interest payable thereon, and any income derived therefrom,
including any profit realized in the sale or exchange thereof, shall at
all times be exempt from taxation of every kind and nature what-
soever within this State by the State of Maryland or by any of its
political subdivisions, municipal corporations or public agencies of
any kind.

9.    Levy of taxes to pay debt service.

(a)    For the purpose of paying the principal of and interest on
the bonds issued under this subheading as the same become due and
payable, there shall be and is hereby levied and imposed an annual
tax which, to the extent necessary, shall be used and applied exclu-
sively for such purpose and which shall consist of the following
taxes, subject only to the prior use and application of one or all or
any combination of those taxes for the purpose of meeting the debt
service requirements of all outstanding and unpaid bonds of prior
issues and bonds of any series of County Highway Construction
Bonds issued and sold under the provisions of Sections 211 or 211G-1
of Article 89B of the Code to the payment of which those taxes or
any part thereof may have been heretofore pledged: (1) THAT POR-
TION OF (i) the excise taxes on motor vehicle fuel imposed by Sec-
tion 136 of Article 56 of the Code, AND (ii) the excise tax on the
issuance of certificates of title for motor vehicles imposed by Section
29 of Article 66½ of the Code and (iii) RETAINED TO THE
CREDIT OF THE DEPARTMENT AFTER THE DISTRIBU-
TIONS MADE UNDER SECTION 38A(B) OF ARTICLE 89B OF
THE CODE, AND (2) the tax on the net income of certain corpora-
tions imposed pursuant to the provisions of Section 288 (c) of Article
81 of the Code.

(b)    As long as any of the bonds issued under this subheading
shall remain outstanding and unpaid, there shall be deposited and
maintained in a sinking fund to be established by the State Treas-
urer to secure the payment of the principal of and interest on the
bonds annually, or more often, as received, so much of the proceeds
of the tax hereby levied and imposed under this section, together