ROBERT L. EHRLICH, JR., Governor                             Ch. 400

CONTAINED IN SECTIONS 9, 10, AND 11 OF ARTICLE 31 (DEBT - PUBLIC) OF THE
ANNOTATED CODE OF MARYLAND. BONDS ISSUED UNDER THE PROVISIONS OF THIS
APPENDIX ARE DECLARED TO BE ISSUED FOR AN ESSENTIAL PUBLIC AND
GOVERNMENTAL PURPOSE AND, TOGETHER WITH INTEREST ON THEM AND INCOME
FROM THEM, ARE EXEMPT FROM ALL TAXES.

(C)     BONDS ISSUED UNDER THIS SECTION SHALL BE AUTHORIZED BY
RESOLUTION OR ORDINANCE OF THE LEGISLATIVE BODY OF THE MUNICIPALITY.
THEY MAY BE ISSUED IN ONE OR MORE SERIES AND:

(1)      SHALL BEAR A DATE OR DATES;

(2)  MATURE AT A TIME OR TIMES;

(3)      BEAR INTEREST AT A RATE OR RATES;

(4)      BE IN A DENOMINATION OR DENOMINATIONS;

(5)      BE IN A FORM EITHER WITH OR WITHOUT COUPON OR REGISTERED;

(6)      CARRY A CONVERSION OR REGISTRATION PRIVILEGE;

(7)      HAVE A RANK OR PRIORITY;

(8)      BE EXECUTED IN A MANNER;

(9)     BE PAYABLE IN A MEDIUM OR PAYMENT, AT A PLACE OR PLACES,
AND BE SUBJECT TO TERMS OF REDEMPTION (WITH OR WITHOUT PREMIUM);

(10)    BE SECURED IN A MANNER; AND

(11)    HAVE OTHER CHARACTERISTICS, AS ARE PROVIDED BY THE
RESOLUTION, TRUST INDENTURE, OR MORTGAGE ISSUED PURSUANT TO IT.

(D)     THESE BONDS MAY NOT BE SOLD AT LESS THAN PAR VALUE AT PUBLIC
SALES WHICH ARE HELD AFTER NOTICE IS PUBLISHED PRIOR TO THE SALE IN A
NEWSPAPER HAVING A GENERAL CIRCULATION IN THE AREA IN WHICH THE
MUNICIPALITY IS LOCATED AND IN WHATEVER OTHER MEDIUM OF PUBLICATION AS
THE MUNICIPALITY MAY DETERMINE. THE BONDS MAY BE EXCHANGED ALSO FOR
OTHER BONDS ON THE BASIS OF PAR HOWEVER, THE BONDS MAY NOT BE SOLD TO
THE FEDERAL GOVERNMENT AT PRIVATE SALE AT LESS THAN PAR, AND, IN THE
EVENT LESS THAN ALL OF THE AUTHORIZED PRINCIPAL AMOUNT OF THE BONDS IS
SOLD TO THE FEDERAL GOVERNMENT, THE BALANCE MAY NOT BE SOLD AT PRIVATE
SALE AT LESS THAN PAR AT AN INTEREST COST TO THE MUNICIPALITY WHICH DOES
NOT EXCEED THE INTEREST COST TO THE MUNICIPALITY OF THE PORTION OF THE
BONDS SOLD TO THE FEDERAL GOVERNMENT.

(E)     IN CASE ANY OF THE PUBLIC OFFICIALS OF THE MUNICIPALITY WHOSE
SIGNATURES APPEAR ON ANY BONDS OR COUPONS ISSUED UNDER THIS APPENDIX
CEASE TO BE OFFICIALS OF THE MUNICIPALITY BEFORE THE DELIVERY OF THE
BONDS OR, IN THE EVENT ANY OF THE OFFICIALS HAVE BECOME SUCH AFTER THE
DATE OF ISSUE OF THEM, THE BONDS ARE VALID AND BINDING OBLIGATIONS OF

- 1453 -