Ch. 472

LAWS OF MARYLAND

public sale of said bonds shall be held not sooner than 10 days
following the first publication of said notice.

The County may enter into agreements with agents, banks,
fiduciaries, insurers, or others for the purpose of enhancing the
marketability of and security for the bonds and for the purpose
of securing any tender option that may be granted to holders of
the bonds.

SECTION 4. AND BE IT FURTHER ENACTED, That the net proceeds
of the sale of said bonds shall be used and applied exclusively
and solely for construction of additions and improvements to
Frederick Memorial Hospital for which the bonds were sold and
shall be loaned or otherwise paid by the Treasurer of the County
to or for the benefit of Frederick Memorial Hospital as and when
and under such terms, conditions, and documentation and secured
by such collateral as the County directs in accordance with the
terms and conditions of its agreement or agreements with
Frederick Memorial Hospital, Inc., of the resolutions of the
County, and of this Act. If the proceeds of the sale of any
series or issue of said bonds exceed the amount needed to finance
the construction of additions and improvements to Frederick
Memorial Hospital, 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, refunding
bonds, or temporary bonds issued hereunder to be deemed
"arbitrage bonds" within the meaning of Section 103 of the
Internal Revenue Code of 1986, as amended.

This Act authorizes and empowers, but in no way obligates,
the County to issue the bonds described herein. The County has
full and complete authority and discretion to determine whether
or not to issue the bonds. It is the intent of this Act that the
County be vested with full discretion and authority to determine
what portion, if any, of the cost of any construction of
additions and improvements to Frederick Memorial Hospital be paid
from the proceeds of general obligation bonds authorized pursuant
to this Act and that the County may provide or require such
conditions for the loan of the proceeds of such bonds to
Frederick Memorial Hospital, Inc., as the County deems necessary.
or appropriate, including (without limitation) provisions for the
repayment of such loan from rates charged patients at the
hospital. The County is further expressly authorized to agree
that construction of additions and improvements to Frederick
Memorial Hospital may be financed in whole or in part from the
proceeds of: (i) general obligation bonds issued pursuant to
this Act or any other Act authorizing the issuance of general

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