1490                                 LAWS OF MARYLAND                               Ch. 475

Upon delivery of any bonds to the purchaser or
purchasers, payment therefor shall be made to the Treasurer
of St. Mary's County or such other official of the County as
may be designated to receive such payment in a resolution
passed by the Board of County Commissioners of St. Mary's
County before such delivery.

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 hospital improvements for
which the bonds were sold and shall be loaned or otherwise
paid by the Treasurer of St. Mary's County to or for the
benefit of the Hospital as and when and under such terms,
conditions and documentation and secured by such collateral
as the County directs in accordance with the terms and
conditions of its agreement or agreements with the Hospital,
of the resolution of the County Commissioners, and of this
Act. If the net proceeds of the sale of any issue of bonds
exceeds the amount needed to finance the hospital
improvements, 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 or to the purchase
and cancellation of bonds, as the County may determine to be
in its best interest.

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 "arbitrage bonds" within the meaning
of Section 103 of the Internal Revenue Code of 1954.

It is the intent of this Act that the County
Commissioners of St. Mary's County be vested with full
discretion and authority to determine what portion, if any,
of the cost of any improvements to the Hospital be paid from
the proceeds of general obligation bonds authorized pursuant
to this Act and that the County Commissioners may provide or
require such conditions for the loan of the proceeds of such
bonds to the Hospital as the County Commissioners deem
necessary or appropriate, including (without limitation)
provision for the repayment of the loan from rates charged
patients by the Hospital. The County is further expressly
authorized to agree that improvements to the Hospital may be
financed in whole or in part from the proceeds of: (i)
general obligation bonds issued pursuant to this Act or any
other act authorizing the issuance of general obligation
bonds of the County for such purpose or (ii) revenue bonds
issued pursuant to any authority authorizing the issuance of
revenue bonds to finance such Hospital facilities, or (iii)
any combination of (i) and (ii); in connection with such
agreement (without in any way creating any limitation on the
discretion of the County Commissioners) the County may
further agree, in its discretion, that any interest (actual
or implied) of the County in the Hospital or in any receipts