Marvin Mandel, Governor                         747

construction of public schools. In the event the amounts so borrowed
shall prove inadequate to financing the construction of public schools
described in the resolution, the County may issue additional bonds
within the limitations hereof for the purpose of evidencing the bor-
rowing of additional funds for such financing, provided the resolu-
tion for authorizing the additional bonds shall so recite, but if
the net proceeds of the sale of any issue of bonds shall exceed the
amount needed to finance the construction of public schools described
in said resolution, the excess funds so borrowed and not expended
by the Board of Education shall be returned to the County by the
Board and applied to the payment of the next principal maturity
of the bonds or to the redemption of any part of the bonds, if the
same shall have been made redeemable, unless the County shall adopt
a resolution allocating the excess funds to some other part of the
school construction program of the Board of Education. THE AU-
THORITY GRANTED UNDER THIS ACT SHALL NOT BE EX-
ERCISED IN ANY MANNER WHICH WOULD CAUSE ANY
BONDS, REFUNDING BONDS OR TEMPORARY BONDS IS-
SUED HEREUNDER TO BE DEEMED "ARBITRAGE BONDS"
WITHIN THE MEANING OF SECTION 103 OF THE INTERNAL
REVENUE CODE OF 1954 OR THE REGULATIONS THEREUN-
DER PRESCRIBED.

Sec. 5. And be it further enacted, That the bonds hereby author-
ized shall constitute, and they shall so recite, an irrevocable pledge
of the full faith and credit and unlimited taxing power of the County
to the payment of the maturing principal of and interest on such
bonds as and when the same respectively mature. In each and every
fiscal year that any of the bonds are outstanding, the County shall
levy or cause to be levied ad valorem taxes upon all the assessable
property within the corporate limits of the County in rate and
amount sufficient to provide for the payment, when due, of the prin-
cipal of and interest on all the bonds maturing in each such fiscal
year and, in the event the proceeds from the taxes so levied in any
such fiscal year shall prove inadequate for such payment, additional
taxes shall be levied in the succeeding fiscal year to make up any
such deficiency. The County may apply to the payment of the prin-
cipal of and interest on any bonds issued hereunder any funds
received by it from the State of Maryland, the United States of
America, any agency or instrumentality thereof, or from any other
source, if such funds are granted for the purpose of assisting the
County in public school construction, and, to the extent of any such
funds received or receivable in any fiscal year, the taxes hereby
required to be levied may be reduced proportionately.

Sec. 6. And be it further enacted, That the County is hereby
further authorized and empowered, at any time and from time to
time, to issue its bonds in the manner hereinabove described for the
purpose of refunding, upon purchase or redemption, any bonds issued
hereunder. The validity of any such refunding bonds shall in no way
be dependent upon or related to the validity or invalidity of the
obligations so refunded. The powers herein granted with respect to
the issuance of bonds, and the limitations on such powers, shall be
applicable to the issuance of refunding bonds. Such 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