746                                     LAWS OF MARYLAND                               Ch. 36

Upon delivery of any bonds to the purchaser or
purchasers, payment therefor shall be made to the County
Treasurer of Garrett 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
Garrett 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 paid by the Treasurer
to or for the benefit of Garrett County Memorial Hospital as
and when and under such conditions as the County directs in
accordance with the terms and conditions of its agreement
with the Board and the terms of this Act. If the net
proceeds of the sale of any issue of bonds exceeds the
amount needed to finance the hospital improvements 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, or to the
purchase and cancellation of bonds, as the County may
determine to be in its best interests.

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 County
and the Board shall enter into an agreement or agreements
providing the terms and conditions under which the net
proceeds of the sale of the bonds shall be loaned to the
Board, and providing the terms and conditions under which
the Board shall provide from its own sources of revenues for
the timely payment of the maturing principal of and interest
on the bonds. However, the bonds 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, if the revenues received by the County from the
Board or the proceeds from the taxes so levied in any such
fiscal year 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