HARRY HUGHES, Governor

2445

Calvert County. The bonds may be registrable as to
principal.

SECTION 3. AND BE IT FURTHER ENACTED, That any bonds
issued under this Act may be sold, in the discretion of the
County Commissioners of Calvert County, at public or private
sale; provided that bonds. Bonds may not be sold at less
than par. Any bonds sold under the authority conferred by
this Act shall be exempted from the provisions of Sections
10 and 11 of Article 31 of the Annotated Code of Maryland
(1976 Replacement Volume), and the bonds, coupons, and the
interest payable on the bonds and coupons shall be exempt
from State, County, and Municipal taxation.

SECTION 4. AND BE IT FURTHER ENACTED, That the proceeds
of the sale of the bonds shall be paid to the Treasurer of
the County Commissioners of Calvert County and shall be
placed in a special fund by the Treasurer, and shall be paid
out by the Treasurer only on warrants from the Board of
County Commissioners of Calvert County. The proceeds net of
any expenses of issuance and sale of the bonds shall be
loaned from time to time to Calvert Memorial Hospital of
Calvert County for the purposes specified in Section 1 of
this Act upon the terms, conditions, and documentation, and
security collateral as the County Commissioners of Calvert
County may by resolution provide, except that the term of
any loan may not exceed 40 years from the date of the first
advance on the loan, and the interest rate may not exceed
the rate payable on the bonds the proceeds of which are
being loaned.

SECTION 5. AND BE IT FURTHER ENACTED, That for the
purpose of paying the principal of and interest on any bonds
issued by this Act, as they mature, the County Commissioners
of Calvert County shall provide by resolution for the
pledging of all proceeds of any loan to Calvert Memorial
Hospital of Calvert County, or as much as may be necessary,
and all collateral to the payment of the principal of and
interest on the bonds. For the purpose of paying the
principal of and interest on the bonds, or as much as may
not be provided for from other sources, the County
Commissioners of Calvert County are authorized, empowered,
and directed to levy in each year, so long as any of the
bonds are outstanding and unpaid, an ad valorem tax on all
property subject to taxation within Calvert County,
sufficient in rate and amount to pay the interest payable in
that year on all outstanding bonds and the principal of all
bonds maturing in that year, the proceeds of the tax to be
kept in a special fund and may not to be used for any other
purpose. If the bonds are issued in any year after the
making of the regular levy for that year, then the County
Commissioners of Calvert County are empowered, authorized,
and directed to pay any and all interest becoming due before
the next levy, out of any other funds at their disposal, and
to levy at the next succeeding levy an amount sufficient to
reimburse the other funds.