HARRY HUGHES, Governor

3087

4-1. Authority to issue; issuance generally; guarantee;
conditions and restrictions generally; funds to service
certain bonds; county audits.

(a)  For the purpose of providing funds for the design,
construction, reconstruction, establishment, extension,
enlargement, purchase or condemnation of the water, sewerage
and drainage systems in the sanitary district, or in any
other areas where extension of any of the aforementioned
systems may be authorized by law, or for the construction,
remodeling, enlargement or replacement of any office or
operating building or buildings required for the
administration or operation of any of [said] THE systems,
including the acquisition of land or equipment, [said] THE
commission is authorized and empowered to issue bonds of the
sanitary district, from time to time, in such amounts as it
may deem necessary to carry on its work, but the aggregate
amount of bonds heretofore or hereafter issued under this
section which may be outstanding at any time, less the
amount held in the joint sinking fund account for the
payment of the principal of [said] THE bonds, shall not

" exceed fourteen per centum (14%) of the total assessable
basis of all property assessed for county taxation purposes
within the sanitary district; provided, however, that in
computing the amount of bonds which may be issued under this
section, there shall not be included any bonds heretofore or
hereafter issued for the payment of which the commission is
required by law to fix and collect water service charges at
least sufficient to pay the principal and interest
requirements of such bonds. Bonds hereafter issued under
the authority of this section shall be serial bonds with the
principal of any given issue payable annually, commencing
not more than three years from the date of the bonds. The
bonds may be either registered or coupon bonds, or
registerable as to principal with interest represented by
coupons and issued in such denomination or denominations as
shall be determined by the commission, shall bear interest
[not to exceed five per centum (5%) per annum] AS PROVIDED
IN § 4-4 OF THIS ARTICLE payable semi-annually and shall
mature not exceeding forty years from the date of issue, and
all bonds of [said] THE district or of [said] THE
commission, including those heretofore issued, shall be
forever exempt from taxation by the State of Maryland and by
the counties and municipalities in [said] THE state. Any
bonds hereafter issued by the Washington Suburban Sanitary
Commission in its name or in the name of the Washington
Suburban Sanitary District may be made redeemable before
maturity at the option of the commission, at such price or
prices and under such terms and conditions as may be fixed
by the commission prior to the issuance of such bonds.

(b)  They shall be issued under the hand and seal of
the commission and shall be guaranteed as to payment of
principal and interest by the county councils of both
Montgomery and Prince George's counties, which guaranty
shall be endorsed on each of the bonds in the following
language: "The payment of interest when due and the