Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1952-01-10

which of said bidders said bonds
will be awarded. The lowest rate
or rates of interest will be de-
termined on the basis of the lowest
interest cost to the Municipality of
the money borrowed from the date
OF issue of the bonds to the last
date Of maturity thereof by add
ing the dollar amount of interest
payable on each bond to maturity
under any proposal and deducting
from the total thereof the amount
of premium offered to be paid foc
such bonds in any such proposal.
Each bidder is requested to show
on his bid the average interest cost
to the Municipality and the total
dollar amount of interest payable
over the life of the bonds, as pro-
duced by said bid, but this request
shall not constitute condition IF
the sale.
Each bid must be enclosed in a
sealed envelope addressed to the
Mayor and Council of Rockville,
and marked on the outside IBID
for Water and Sewer Bonds of
1882" Each such bid must be ac-
companied by a certified check
drawn to the order of the Mayor
and Council of Rockville for Five
Thousand Dollars ($5,000.00) to Sc
cure the Municipality against any
loss resulting from the failure of
the particular bidder to comply
with the terms of his bid. Checks
deposited by unsuccessful bidders
will be returned to them when the
bonds are awarded to the success
Jul bidder. No interest will be al
owed on the amount of the above
required deposit, but accrued in
terest on said bonds shall be ad-
justed to the date of delivery of
the bonds and payment therefor.
The bonds are issued pursuant
to the authority of Section 1882,
Montgomery County Code of 1850
and also pursuant to the authority
of Chapter 807 of the Acts of the
General Assembly of Maryland,
passed at its January Session in
the year 1947 and of an ordinance
duly adopted by the Mayor and
Council of Rockville dated Janu-
cry 2, 1852.
The full faith and credit of the
Mayor and Council of Rockville
has been irrevocably pledged to the
payment OF the maturing principal
End interest of SAID bonds, which
such principal and interest are pay
able, DIS to one Hundred Sixty -Four
thousand Dollars ($164,U00.00)
face amount of such bonds, PR
marily from special benefit assess
ments levied by the Municipality
against property specially benefit
ted by the water and sewer line
extensions installed with the pro-
ceeds of the sale of said bonds and,
secondarily from the ad valorem
take hereinafter described, and as
to Thirty Six Thousand Dollars
1896, 00O.O0) face amount of said
bonds entirely from such ad va
loren taxes. The Municipality is
directed by the Acts of Assembly
above mentioned, annually to levy
ad valorem taxes upon all assess
able property within its corporate
limits sufficient in rate and amount
to provide for said payments or
any deficiency in the proceeds of
said special benefit assessments.
This direction has been complied
with in the ordinance above men,
toned. The Municipality is le-
gally empowered to impose such
special benefit assessments and to
evy ad valorem taxes, without
limitation as to rate or amount,
on all real property within its
corporate limits subject to assess
lnent for taxation and on certain
types of tangible and intangible
personal property.
Under existing laws, these bonds
are exempt from State, County and
municipal taxation in the State of
Maryland, and the income derived
therefrom is exempt from Federal
income tax. In the event that
prior to the delivery of the bonds
the. income received by private
holders from bonds of the same
type and character shall be declar-
ed to be taxable under present
Federal income tax laws, either
by ruling of the Bureau of In
ternal Revenue or by decision of
any Federal Court, or shall be
made taxable by the terms of any
Fedora income tax law, the sue
cessful bidder may, at his election,
he relieved of his obligation under
his contract to purchase the bonds,
and in such cases the deposit ac-
companying his bid will be re-
turned. ...t.
Information concerning the f.
nancial condition of Rockville will
be supplied to any prospective bid
der upon request made to John
G., Mcdonald. Civ Manaver nj