WILLIAM DONALD SCHAEFER, Governor                         Ch. 562

computing the amount of bonds that may be issued under Chapter 122, as amended. The
bonds shall be forever exempt from taxation by the State of Maryland and by the counties
and municipalities in the State. The bonds shall be guaranteed, as to the payment of
principal and interest, by the County Council of Montgomery County and the County
Council of Prince George's County, or the governing body for each county, respectively,
as may be provided by law or instrument of Charter, which guarantee shall be in the form
and under the provisions of Section 5 of Chapter 122 of 1918, or any amendment thereof
or any section enacted in lieu thereof. The Commission, however, at its option may waive
the guarantee of the counties prescribed in this Act.

SECTION 2. AND BE IT FURTHER ENACTED, That the proceeds of the
bonds authorized by Section 1 of this Act shall be used for the purpose of enlarging,
increasing, and augmenting the water supply of the area served by the Commission,
including the construction or enlargement of any impounding reservoir, filter plant,
filtered water storage structure, or pumping station, and all the necessary pipelines and
accessories appurtenant thereto, and the construction of major supply lines and
reinforcing mains.

SECTION 3. AND BE IT FURTHER ENACTED, That the Commission be and
it is hereby authorized and empowered to issue bonds of the Sanitary District in an
aggregate principal amount not exceeding $5,000,000 which bonds shall be in addition to
any bonds authorized to be issued under Chapter 122 of the Acts of 1918, or any
amendments thereof, or under any other Act of the General Assembly of Maryland, and
shall be fully registered bonds without coupons in a form that the Commission deems
necessary or desirable, in such denomination or denominations as shall be determined by
the Commission, and shall bear interest at such rate or rates annually as the Commission
determines to be advantageous to the Sanitary District and otherwise in the public
interest, payable semiannually, and shall be retired serially, the last bond to be retired not
later than 40 years from the date of issue. The Commission may offer for sale and issue
such bonds, from time to time, as its necessity requires. The bonds shall be executed and
issued under the same provisions, limitations, and restrictions applicable to the bonds
issued by the Commission under the provisions of Chapter 122 of 1918, as amended,
except that the bonds may not be subject to the limitation in Chapter 122 of 1918, as
amended, on the amount of bonds that may be issued and may not be included in
computing the amount of bonds that may be issued under Chapter 122 of 1918, as
amended. The bonds shall be forever exempt from taxation by the State of Maryland and
by the counties and municipalities in the State. The bonds shall be guaranteed, as to the
payment of principal and interest, by the County Council for Montgomery County and the
County Council of Prince George's County, or the governing body for each county,
respectively, as may be provided by law or instrument of Charter, which guarantee shall
be in the form and under the provisions of Section 5 of Chapter 122 of 1918, or any
amendment thereof or any section enacted in lieu thereof. The Commission, however, at
its option may waive the guarantee of the counties prescribed in this Act.

SECTION 4. AND BE IT FURTHER ENACTED, That the proceeds of the
bonds authorized by Section 3 of this Act shall be used for the sole purpose of specifically
increasing the capacity of the water supply of the area served by the Commission, as

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