2522

LAWS OF MARYLAND

Ch. 453

Upon delivery of any bonds to the purchaser or purchasers,
payment therefor shall be made to the Treasurer of Cecil 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 Cecil County before such delivery.

SECTION 5. 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 6. 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 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 granted for the purpose of