Theodore R. McKeldin, Governor                       91

sion of sewerage facilities and to enter into agreements with such
agency respecting such loans and grants. The governing body of the
municipality in determining such cost may include all costs and
estimated costs of the issuance of said bonds, all planning, engineer-
ing, inspection, fiscal and legal expenses, and interest which it is
estimated will accrue during the construction period and for six
months thereafter on money borrowed or which it is estimated will
be borrowed pursuant to this Act.

405D (Authorization Bond Provisions) The planning, construc-
tion, acquisition, reconstruction, improvement, betterment or exten-
sion of any sewerage facilities may be authorized under this Act
and bonds may be authorized to be issued under this Act to provide
funds for such purpose or purposes by resolution or resolutions of
the governing body which may be adopted at the same meeting at
which they are introduced by a majority of all the members thereof
then in office and shall take effect immediately upon adoption. Said
bonds shall bear interest at such rate or rates not exceeding five SIX
per centum per annum, payable semi-annually, may be in one or more
series, may bear such date or dates, may mature at such time or
times not exceeding forty years from their respective dates, may be
payable in such medium of payment, at such place or places, may
carry such registration privileges, may be subject to such terms of
redemption, may be executed in such manner, may contain such
terms, covenants and conditions, and may be in such form, either
coupon or registered, as such resolution or subsequent resolutions
may provide. Said bonds shall be sold at public sale, after advertise-
ment, at not less than par. Provided, however, that said bonds may
be sold at private sale to the United States of America or to any
agency, instrumentality or corporation thereof, at a price or prices
not less than par. Pending the preparation of the definitive bonds,
interim receipts or certificates in such form and with such provisions
as the governing body may determine may be issued to the pur-
chaser or purchasers of bonds sold pursuant to this Act. Said bonds
and interim receipts or certificates shall be fully negotiable within
the meaning of and for all the purposes of the Negotiable Instru-
ments Law of the State. These bonds, notes, or other instruments
issued under this Act shall be forever exempt from State, County or
municipal taxation.

405E (Covenants in Resolution Authorizing Issuance of Bonds)
Any resolution or resolutions authorizing the issuance of Bonds
under this Act may contain covenants as to (a) the purpose or pur-
poses to which the proceeds of sale of said bonds may be applied
and the use and disposition thereof; (b) the use and disposition of
the revenue of the sewerage facilities for which said bonds are
to be issued, including the creation and maintenance of reserves;
(c) the transfer from the general funds of the municipality to the
account or accounts of the sewerage facilities an amount equal to
the cost of furnishing such municipality or any of its departments,
boards or agencies with the services, facilities and commodities of
sewerage facilities; (d) the issuance of other or additional bonds
payable from the revenue of sewerage facilities; (e) the operation
and maintenance of such sewerage facilities; (f) the insurance to
be carried thereon and the use and disposition of insurance moneys;
(g) books of account and the inspection and audit thereof; and (h)
the terms and conditions upon which the holders of said bonds or