2318                                    LAWS OF MARYLAND                                 Ch. 571

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 financing the public facilities.
If the net proceeds of the sale of any issue of bonds
exceeds the amount needed to finance the public facilities,
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 or temporary bonds issued hereunder to be deemed
"arbitrage bonds" within the meaning of Section 103 of the
Internal Revenue Code of 1954.

SECTION 5. AND BE IT FURTHER ENACTED, That the bonds
hereby authorized 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 the
payment, when due, of the principal of and interest on all
the bonds maturing in such fiscal year and, in the event 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 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 thereof, or
from any other source. If such funds are available for the
purpose of assisting the County or the Board of Education in
financing the public facilities, taxes that might otherwise
be required to be levied under this Act may be reduced or
need not be levied to the extent that any such funds are
received or receivable in any fiscal year.

SECTION 6. 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 of the Board, provide
for the replacement of any bonds issued hereunder which
shall have become mutilated or be lost or destroyed upon