130

LAWS OF MARYLAND

Ch. 29

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 of either, or from any other source, if such
funds are granted for the purpose of assisting the County in
financing the construction, improvement, or development of
the jail facilities defined in this Act and, to the extent
of any such funds received or receivable in any fiscal year,
taxes that might otherwise be required to be levied under
this Act may be reduced or need not be levied.

SECTION 6. AND BE IT FURTHER ENACTED, That 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.

SECTION 7. AND BE IT FURTHER ENACTED, That the County
may, prior to the preparation of definitive bonds, issue
interim certificates or temporary bonds, with or without
coupons, exchangeable for definitive bonds when such bonds
have been executed 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 in this Act. The
County may, by appropriate resolution, provide for the
replacement of any bonds issued hereunder which shall have
become mutilated or be lost or destroyed upon such
conditions and after receiving such indemnity as the County
may require.

SECTION 8. AND BE IT FURTHER ENACTED, That any and all
obligations 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.