688                              Laws of Maryland                      [Ch* 334

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
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 here-
under. The validity of any such refunding bonds shall in no way be
dependent upon or related to the validity or invalidity of the obliga-
tions so refunded. The powers herein granted with respect to the
issuance of bonds, and also the limitations herein on such powers
shall be applicable to the issuance of refunding bonds. Said re-
funding bonds may be issued by the County for the purpose of
providing it with funds to purchase in the open market any of its out-
standing 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 re-
deemed 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 exe-
cuted 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 be-
come 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
July 1, 1971.

Approved April 29, 1971