MARVIN MANDEL, Governor

29

less than par. Any bonds sold under the authority hereby
conferred shall be exempted from the provisions of
Sections 10 and 11 of Article 31 of the Annotated Code of
Maryland (1971 Replacement Volume), and such bonds and
the coupons attached thereto and the interest payable
thereon shall be and remain forever exempt from State,
County and Municipal taxation in the State of Maryland.

SECTION 4. AND BE IT FURTHER ENACTED, That the
proceeds of the sale of such bonds shall be paid to the
Treasurer of the County Commissioners of Calvert County
and shall be placed in a special fund by the Treasurer,
and shall be paid out by the Treasurer only on warrants
from the Board of County Commissioners of Calvert County.
Such proceeds net of any expenses of issuance and sale of
said bonds shall be loaned at one time or in increments
from time to time to Calvert Memorial Hospital of Calvert
County for the purposes specified in Section 1 of this
Act for such term and upon such terms, conditions, and
documentation and secured by such collateral as the
County Commissioners of Calvert County may by resolution
provide, except that the term of any such loan shall not
exceed forty years from the date of the first advance on
any such loan, and the interest rate thereon shall not
exceed the rate payable on the bonds the proceeds of
which are being loaned.

SECTION 5. AND BE IT FURTHER ENACTED, That for the
purpose of paying the principal of and interest on any
bonds issued hereunder, as they mature, the County
Commissioners of Calvert County shall provide by
resolution for the pledging of all proceeds of any loan
to Calvert Memorial Hospital of Calvert County, or so
much thereof as may be necessary, and all collateral
therefor to the payment of the principal of and interest
on such bonds. For the purpose of paying the principal of
and interest on such bonds, or so much thereof as may not
be provided for from other sources, the County
Commissioners of Calvert County are authorized, empowered
and directed to levy in each year so long as any of such
bonds are outstanding and unpaid, an ad valorem tax on
all property subject to taxation within Calvert County,
sufficient in rate and amount to pay the interest payable
in that year on all outstanding bonds and the principal
of all bonds maturing in that year, the proceeds of such
tax to be kept in a special fund and in no case to be
used for any other purpose. In case such bonds shall be
issued in any year after the making of the regular levy
for that year, then the County Commissioners of Calvert
County are empowered, authorized and directed to pay any
and all interest becoming due before the next levy, out
of any other funds at their disposal, and to levy at the
next succeeding levy an amount sufficient to reimburse
such other funds.