2202

LAWS OF MARYLAND

Ch. 797

SECTION 4. AND BE IT FURTHER ENACTED, That the net
proceeds of the sale of bonds shall be used and applied
exclusively and solely for the construction, improvement
or development of the public facilities for which the
bonds were sold. In the event the amounts so borrowed
shall prove inadequate to finance the projects described
in the resolution, the County may issue additional bonds
within the limitations hereof for the purpose of
evidencing the borrowing of additional funds for such
financing, provided the resolution authorizing the sale
of additional bonds shall so recite, but if the net
proceeds of the sale of any issue of bonds exceeds the
amount needed to finance the projects described in the
resolution, the excess funds so borrowed and not expended
shall be applied to the payment of the next principal
maturity of the bonds or to the redemption of any part of
the bonds which have been made redeemable, unless the
County shall adopt a resolution allocating the excess
funds to the construction, improvement or development of
other public facilities, as defined and within the limits
set forth in this Act.

The authority granted under this Act shall not be
exercised, nor shall any of the proceeds of the sale of
bonds be used or applied, in any manner which would cause
any bonds, refunding bonds or temporary bonds issued
hereunder to be deemed "industrial development bonds" or
"arbitrage bonds" within the meaning of Section 103 of
the Internal Revenue Code of 1954 or the regulations
prescribed thereunder.

SECTION 5. AND BE IT FURTHER ENACTED, That the
bonds hereby authorized 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 the
bonds as and when they become payable. 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 or assure the payment, when due, of the
principal 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
principal 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
construction, improvement or development of the public
facilities defined in this Act 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