H.B. 783

VETOES

in the manner hereinabove described for the purpose of refunding, upon purchase or
redemption, any bonds issued under this Act. The validity of any refunding bonds is in no
way dependent upon or related to the validity or invalidity of the obligations being
refunded. The powers granted under this Act 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 purchase in the open market any
of its outstanding bonds issued under this Act, prior to their maturity, or for the purpose
of providing it with funds for the redemption prior to maturity of any outstanding bonds
which are, by their terms, redeemable. The proceeds of the sale of any 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,
exchangeable for definitive bonds when such bonds have been executed and are available
for delivery. The County may, by appropriate resolution, provide for the replacement of
any bonds issued under this Act which may have become mutilated or lost or destroyed
upon whatever conditions and after receiving whatever indemnity as the County may
require.

SECTION 8. AND BE IT FURTHER ENACTED, That any and all obligations
issued under this Act, their transfer, the interest payable on them, and any income
derived from them from time to time (including any profit made in their sale) 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 hereunder 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
additional, alternative and supplemental authority for borrowing money and shall be
regarded as supplemental and additional to powers conferred upon the County by other
laws and may not be regarded as in derogation of any power now existing; and all
previously enacted laws authorizing the County to borrow money are hereby continued to
the extent that the power contained in them is continuing or has not been exercised,
unless any law is expressly repealed by this Act, and the validity of any bonds issued under
previously enacted laws is hereby ratified, confirmed and approved. This Act, being
necessary for the welfare of the inhabitants of Cecil County, shall be liberally construed to
effect its purposes. All Acts and parts of Acts inconsistent with the provisions of this Act
are hereby repealed to the extent of any inconsistency.

SECTION 10. AND BE IT FURTHER ENACTED, That this Act shall take
effect June 1, 1997.

May 22, 1997

The Honorable Casper R. Taylor, Jr.
Speaker of the House

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