Ch. 37

2003 LAWS OF MARYLAND

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 Frederick 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 in financing the
construction, improvement, development, or renovation of the public facilities defined
in this Act and, to the extent of any such funds received or receivable in any fiscal
year, the taxes that might otherwise be levied under this Act, may be reduced or need
not be levied.

SECTION 6. AND BE IT FURTHER ENACTED, That the County is hereby
further authorized and empowered, at any time and from time to time, to issue its
bonds in the manner herein above 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 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.

- 1068 -