2306

LAWS OF MARYLAND

Ch. 567

advertisement, which shall be published in one or more daily
or weekly newspapers having a general circulation in the
County and which may also be published in one or more
journals having a circulation primarily among banks and
investment bankers. At least one publication of the
advertisement shall be made not less than ten (10) days
before the sale of bonds.

Upon delivery of any bonds to the purchaser or
purchasers, payment herefor therefore shall be made to the
Treasurer of the County or such other official of the County
as may be designated to receive such payment in a resolution
adopted by the Board 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 the 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 Physicians Memorial
Hospital, Inc., of the resolutions of the Board, 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 ineterest 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 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 be vested
with full discretion and authority to determine what
portion, if any, of the cost of any hospital improvements be
paid from the proceeds of general obligation bonds
authorized pursuant to this Act and that the County may
provide or require such conditions for the loan of the
proceeds of such bonds to Physicians Memorial Hospital,
Inc., the nonprofit corporation which operates and maintains
the Hospital, as the County deems necessary or appropriate,
including (without limitation) provision for the repayment
of such loan from rates charged patients at the Hospital.
The County is further expressly authorized to agree that
hospital improvements 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 Act authorizing the
issuance of general obligation bonds of the County for such
purpose or (ii) revenue bonds issued pursuant to any