Ch. 157                                    1996 LAWS OF MARYLAND

bonds shall be applicable to the issuance of refunding bonds. Such refunding bonds may
be issued by the County for the purpose of providing it with funds to pay any of its
outstanding bonds issued hereunder at maturity, for the purpose of providing it with
funds to purchase in the open market any of its outstanding bonds issued hereunder, prior
to the maturity thereof, or for the purpose of providing it with funds for the redemption
prior to maturity of any outstanding bonds issued hereunder which are, by their terms,
redeemable, for the purpose of providing it with funds to pay interest on any outstanding
bonds issued hereunder prior to their payment at maturity of purchase or redemption in
advance of maturity, or for the purpose of providing it with funds to pay any redemption
or purchase premium in connection with the refunding of any of its outstanding bonds
issued hereunder. The proceeds of the sale of any such refunding bonds shall be
segregated and set apart by the County as a separate trust fund to be used solely for the
purpose of paying the purchase or redemption prices of the bonds to be refunded.

SECTION 7. AND BE IT FURTHER ENACTED, That the County may, prior to
the preparation of definitive bonds, issue interim certificates or temporary bonds, with or
without coupons, exchangeable for definitive bonds when such bonds have been executed
and are available for such delivery, provided, however, that any such interim certificates
or temporary bonds shall be issued in all respects subject to the restrictions and
requirements set forth in this Act. The County may, by appropriate resolution, provide for
the replacement of any bonds issued hereunder which shall have become mutilated or lost
or destroyed upon such conditions and after receiving such indemnity as the County may
require.

SECTION 8. AND BE IT FURTHER ENACTED, That any and all obligations
issued pursuant to the authority of this Act, their transfer, the interest payable thereon,
and any income derived therefrom in the hands of the holders thereof from time to time
(including any profit made in the sale thereof) shall be and are hereby declared to be at
all times exempt from State, county, municipal, or other taxation of every kind and nature
whatsoever within the State of Maryland.

Nothing in this Act shall prevent the County from authorizing the issuance and sale
of bonds the interest on which is not excludable from gross income for federal income tax
purposes.

SECTION 9. AND BE IT FURTHER ENACTED, That the authority to borrow
money and issue bonds conferred on the County by this Act shall be deemed to provide
an additional and alternative authority for borrowing money and shall be regarded as
supplemental and additional to powers conferred upon the County by other laws and shall
not be regarded as in derogation of any power now existing; and all Acts of the General
Assembly of Maryland heretofore passed authorizing the County to borrow money are
hereby continued to the extent that the powers contained in such Acts have not been
exercised, and nothing contained in this Act may be construed to impair, in any way, the
validity of any bonds that may have been issued by the County under the authority of any
said Acts, and the validity of the bonds is hereby ratified, confirmed, and approved. This
Act, being necessary for the welfare of the inhabitants of Carroll County, shall be liberally
construed to effect the purposes hereof. All Acts and parts of Acts inconsistent with the
provisions of this Act are hereby repealed to the extent of such inconsistency.

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