MARVIN MANDEL, Governor                               787

ISSUED PURSUANT TO THE AUTHORITY OF THIS ACT, THEIR
TRANSFER, THE INTEREST PAYABLE THEREON, AND ANY INCOME
DERIVED THEREFROM IN THE HANDS OF THE HOLDERS THEREOF
FROM TIME TO TIME (INCLUDING ANY PROFIT MADE IN THE SALE
THEREOF) SHALL BE AND ARE HEREBY DECLARED TO BE AT ALL
TIMES EXEMPT FROM STATE, COUNTY, MUNICIPAL OR OTHER
TAXATION OF EVERY KIND AND NATURE WHATSOEVER WITHIN THE
STATE OF MARYLAND. THE BONDS, AND THE ISSUANCE AND SALE
THEREOF, SHALL BE EXEMPT FROM THE PROVISIONS OF SECTIONS
9, 10, AND 11 OF ARTICLE 31 OF THE ANNOTATED CODE OF
MARYLAND (1971 REPLACEMENT VOLUME).

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 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 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 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.

2.    The proceeds received from time to time from
the sale of such [notes,] bonds [or other certificates of
indebtedness] shall be placed in a special fund by the
County Treasurer FOR THE ACCOUNT OF THE ALLEGANY COUNTY
WATER COMMISSION and shall be paid out by him only on
warrants authorized by the [county Commissioners of]
Allegany County WATER COMMISSION for the purposes and
projects authorised by this Act, provided, however, that
if for any reason any such proceeds are not to be paid
out, as aforesaid, within a reasonable period of time,
the County Commissioners in their discretion are hereby
authorized to direct the County Treasurer to invest such
proceeds in accordance with the provisions of Section 22
of Article 95 of the Annotated code of Maryland (1957
Edition), as amended from time to time.

3.     For the purpose of paying the PRINCIPAL OF AND
interest on said [notes,] bonds [or other certificates of
indebtedness and for redeeming the same as they mature]
WHEN DUE, the County Commissioners of Allegany County