WILLIAM DONALD SCHAEFER, Governor

Ch. 340

In case any officer whose signature appears on any bond ceases to be such officer
before delivery, the signature shall nevertheless be valid and sufficient for all purposes as
if the officer had remained in office until delivery. The bonds and their issue and sale
shall be exempt from the provisions of Sections 9, 10, and 11 of Article 31 of the
Annotated Code of Maryland.

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 Cecil 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 bonds.

Upon delivery of any bonds to the purchaser or purchasers, payment shall be made
to the Treasurer of Cecil County or such other official of Cecil County as may be
designated to receive payment in a resolution adopted by the Board before 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 public school
facilities for which the bonds are sold. If the net proceeds of the sale of any issue of bonds
exceeds the amount needed to finance the public school facilities described in the
resolution, the excess funds 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, unless the Board in its
discretion adopts a resolution allocating the excess funds to the construction,
improvement, or development of other public school facilities.

SECTION 5. 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
Cecil County in rate and amount sufficient to provide for or assume the payment, when
due, of the principal of and interest on all the bonds maturing in each such fiscal year
and, if the proceeds from the taxes so levied in any fiscal year prove inadequate for such
payment, additional taxes shall be levied in the succeeding fiscal year to make up any
deficiency. The County may apply to the payment of the principal of and interest on any
bonds issued under this Act any funds received by it from the State of Maryland, the
United States of America, any agency or instrumentality of either, or from any other
source. If such funds are granted for the purpose of assisting the County in financing the
construction, improvement, development, or renovation of the public school facilities
defined in this Act and, to the extent of any such funds received or receivable in any fiscal
year, taxes that might otherwise be required to be levied under this Act may be reduced
or need not be levied.

- 1897 -