Ch. 384

1997 LAWS OF MARYLAND

Memorial Hospital, as the County deems necessary or appropriate, including (without
limitation) provisions for the repayment from rates charged patients at the Hospital.

SECTION 6. AND BE IT FURTHER ENACTED, That the County may enter into
an agreement or agreements with the Garrett County Memorial Hospital pursuant to
which the Hospital shall be required to make periodic payments from the hospital's
revenues or other assets to the County at such times and in such amounts to assure the
timely payment of the maturing principal of and interest on the bonds and any related
expenses of the County. However, 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 the County in rate and amount
sufficient to provide for or assure the payment, when due, of the principal of and interest
on all the bonds maturing in each such fiscal year and, in the event the proceeds from the
taxes so levied in any such fiscal year shall prove inadequate for such payment, additional
taxes shall be levied in the succeeding fiscal year to make up any such deficiency. The
County may apply to the payment of the principal of and interest on any bonds issued
hereunder any funds received by it from the State of Maryland, the United States of
America, any agency or instrumentality thereof, or from any other source. If such funds
are granted for the purpose of assisting the County or the Hospital in financing the
hospital improvements defined in this Act, the taxes that otherwise might be required to
be levied under this Act may be reduced or need not be levied to the extent that any such
funds are received or receivable in any fiscal year.

SECTION 7. AND BE IT FURTHER ENACTED, That the County is further
authorized and empowered, at any time and from time to time, to issue its bonds in the
manner hereinabove described for the purpose of refunding, by payment at maturity or
upon purchase or redemption, any bonds issued hereunder. The validity of any such
refunding bonds shall in no way be dependent upon or related to the validity or invalidity
of the obligations so refunded. The powers herein granted with respect to the issuance of
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 8. 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

- 2588 -