ROBERT L. EHRLICH, JR., Governor                               Ch. 37

executing and sealing the bonds, which may be by facsimile; the terms and conditions,
if any, under which bonds may be tendered for payment or purchase prior to their
stated maturity; the terms or conditions, if any, under which bonds may or shall be
redeemed prior to their stated maturity; the place or places of payment of the
principal of and the interest on the bonds, which may be at any bank or trust
company within or without the State of Maryland; covenants relating to compliance
with applicable requirements of federal income tax law, including covenants
regarding the payment of rebate or penalties in lieu of rebate; covenants relating to
compliance with applicable requirements of federal or state securities laws; and
generally all matters incident to the terms, conditions, issuance, sale, and delivery
thereof.

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.

In case any officer whose signature appears on any bond 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 2C, 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
the County and which may also be published in one or more journals having a
circulation primarily among banks and investment bankers.

Upon delivery of any bonds to the purchaser or purchasers, payment therefor
shall be made to the Treasurer of Frederick County or such other official of Frederick
County as may be designated to receive such payment in a resolution passed by the
County Commissioner of Frederick County before delivery. For purposes of issuance
and sale, bonds authorized hereunder may be consolidated into a single issue with
any other bonds authorized to be issued by the County.

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 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 facilities 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 the costs of
other public 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

- 1067 -