PARRIS N. GLENDENING, Governor

H.B. 1255

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.

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, as
effective from time to time.

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 Garrett County or such other official of Garrett 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 financing the hospital
improvements for which the bonds are sold and that the proceeds shall be loaned or
otherwise paid by the County for the benefit of Garrett County Memorial Hospital as and
when and under such terms, conditions, and documentation as the County directs, and
secured by such collateral as the County directs in accordance with the terms and
conditions of its agreement or agreements with Garrett County Memorial Hospital, of the
resolutions of the County, and of this Act. If the net proceeds of the sale of any issue of
bonds exceeds the amount needed to finance the hospital improvements 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 of any part of
the bonds which have been made redeemable or to the purchase and cancellation of
bonds, unless the County shall adopt a resolution allocating the excess funds to other
hospital improvements.

SECTION 5. AND BE IT FURTHER ENACTED, That it is the intent of this Act
that the County be vested with full discretion and authority to determine what portion, if
any, of the cost of any hospital improvements shall be paid from the proceeds of general
obligation bonds authorized pursuant to this Act and that the County may provide or
require such conditions for the loan of the proceeds of such bonds to the Garrett County

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