2646

LAWS OF MARYLAND

Ch. 705

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 construction, improvement or
development of public facilities for which the bonds were
sold. In the event the amounts so borrowed shall prove
inadequate to finance the projects described in the
resolution the County may issue additional bonds with the
limitations hereof for the purpose of evidencing the
borrowing of additional funds for such financing, provided
the resolution authorizing the sale of additional bonds
shall so recite, but if the net proceeds of the sale of any
issue of bonds exceeds the amount needed to finance the
projects 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, unless the County shall adopt a resolution
allocating the excess funds to the construction, improvement
or development of other public facilities, as defined and
within the limits set forth in this Act.

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 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 or
assure the payment, when due, of the principal of and
interest on all the bonds maturing in each such fiscal year
and, in the event the proceeds from the taxes so levied in
any such fiscal year shall 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 any interest on any