WILLIAM DONALD SCHAEFER, Governor                         Ch. 604

Maryland; covenants relating to compliance with applicable requirements of federal
income tax law, including (without limitation) covenants regarding the payment of rebate
or penalties in lieu of rebate; and generally all matters incident to the terms, conditions,
issuance, sale, and delivery thereof.

The bonds may be made redeemable before maturity, at the option of the County, at
such price or prices and under such terms and conditions as may be fixed by the County
prior to the issuance of the bonds, either in the resolution or in subsequent resolutions.
The bonds may be issued in coupon or in registered form or both, and provision may be
made for the registration of the principal only, or of both principal and interest, of bonds
having coupons attached, and for the reconversion of bonds into coupon form if any bond
has been registered as to both principal and interest. In case any officer whose signature
appears on any bond or on any coupon attached thereto ceases to be such officer before
the delivery thereof, such signature shall nevertheless be valid and sufficient for all
purposes as if he had remained in office until such delivery. The bonds and the issuance
and sale thereof shall be exempt from the provisions of Sections 9, 10, and 11 of Article
31 of the Annotated Code of Maryland.

The County may enter into agreements with agents, banks, fiduciaries, insurers, or
others for the purpose of enhancing the marketability of any security for the bonds and
for the purpose of securing any tender option that may be granted to holders of the
bonds, all as may be determined and presented in the aforesaid resolution, which may
(but need not) state as security for the performance by the County of any monetary
obligations under such agreements the same security given by the County to bondholders
for the performance by the County of its monetary obligations under the bonds.

If the County determines in the resolution to offer any of the bonds by solicitation
of competitive bids at public sale, the resolution shall fix the terms and conditions of the
public sale and shall adopt a form of notice of sale, which shall outline the terms and
conditions, and a form of advertisement, which shall be published in one or more daily or
weekly newspapers having a general circulation in the County and which may also be
published in one or more journals having a circulation primarily among banks and
investment bankers. At least one publication of the advertisement shall be made not less
than 10 days before the sale of the bonds.

Upon delivery of any bonds to the purchaser or purchasers, payment therefor shall
be made to the Treasurer of Carroll County or such other official of Carroll County as
may be designated to receive such payment in a resolution passed by the 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 acquisition,
construction, improvement, or development of public facilities for which the bonds are
sold. If the amounts 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

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