HARRY HUGHES, Governor                               1387

BE BORROWED AND THE MAXIMUM RATE OF INTEREST TO BE PAID, [A]

A municipality or county, notwithstanding the_provisions of

any charter and without in any event pledging its full faith
and credit in support of a [mortgage] LOAN, is fully enabled

and empowered to borrow money and WHEN THE COUNTY__IS THE

MORTGAGOR execute a mortgage as security for the purpose of
defraying the cost of acquiring OR CONSTRUCTING any
industrial project approved by the Authority [either by
purchase or construction, after an ordinance or resolution
has been adopted by the legislative body of the municipality
or county, specifying the proposed undertaking, the amount
of money to be borrowed and the maximum rate of interest to

be paid]. The ordinance or resolution shall be

administrative in nature and not subject to any referendum.
The ordinance or resolution shall further provide that the
[industrial project is to be acquired] FUNDS BORROWED BY THE

COUNTY OR MUNICIPALITY SHALL BE UTILIZED IN CONNECTION WITH

A BONA FIDE INDUSTRIAL PROJECT pursuant to the provisions of
this [subheading] SUBTITLE [that the industrial project is
to be acquired for a bona fide tenant], as evidenced by a
letter of intent or similar agreement between the
prospective [tenant] INDUSTRIAL PROJECT APPLICANT and the
municipality or county borrowing the money. Any industrial
project acquired by a municipality or county under this
subheading is not a capital project of the municipality or
county, notwithstanding the provisions of any charter. A
municipality or county may participate fully in the
provisions of this subheading, for its general purposes.
Nothing in this section shall be construed to authorize any
municipality or county to acquire any industrial project by
eminent domain. If a municipality or county has previously

acquired all or__any part of an industrial project and

incurred costs relating thereto pursuant to legal authority
conferred upon it other than by this subheading, then that
public body may fully participate in the provisions of this
subheading as regards that project. In that event, the
provisions of this subheading relating to acguisition by the
public body shall be deemed to have been complied with, and
the public body may be reimbursed for its previously
incurred costs of the project from the proceeds of the
mortgage funds.

(b) If a county or municipality participates as
[mortgagor] BORROWER in accordance with the provisions of
subsection (a), the interest payable on the principal of the
[mortgage] LOAN shall be and remain exempt from income
taxation by the State of Maryland and by the several
counties and municipalities of this State.

(C) WHEN THE MUNICIPALITY OR COUNTY IS MORTGAGOR, SUCH
[A] A municipality [of] OF county may agree with any lessee
of any facility acquired hereunder, that at the time the
principal and interest on the mortgage have been paid in
full, the lessee may purchase or otherwise acguire the
facility procured by the county or municipality with the

proceeds of the mortgage funds. The consideration for the

conveyance or an acquisition may be nominal, and any such