1350                             Laws of Maryland                        [Ch. 762

8.    Encouragement of Private Enterprise

The municipality, to the greatest extent it determines to be feasible
in carrying out the provisions of this sub-heading, shall afford maxi-
mum opportunity, consistent with the sound needs of the municipal-
ity as a whole, to the rehabilitation or redevelopment of any urban
renewal area by private enterprise. The municipality shall give con-
sideration to this objective in exercising its powers under this sub-
heading.

9.    General Obligation Bonds

For the purpose of financing and carrying out of an urban renewal
project and related activities, the municipality may issue and sell its
general obligation bonds. Any bonds issued by the municipality pur-
suant to this section shall be issued in the manner and within the
limitations prescribed by applicable law for the issuance and authori-
zations of general obligation bonds by such municipality, and also
within such limitations as shall be determined by said municipality.

10.    Revenue Bonds

(a)  In addition to the authority conferred by Section 9 of this
sub-heading, the municipality shall have the power to issue revenue
bonds to finance the undertaking of any urban renewal project and
related activities, and shall also have power to issue refunding bonds
for the payment or retirement of such bonds previously issued by it.
Such bonds shall be made payable, as to both principal and interest,
solely from the income, proceeds, revenues, and funds of the munic-
ipality derived from or held in connection with its undertaking and
carrying out of urban renewal projects under this sub-heading; pro-
vided, however, that payment of such bonds, both as to principal and
interest, may be further secured by a pledge of any loan, grant or
contribution from the Federal Government or other source, in aid of
any urban renewal projects of the municipality under this sub-head-
ing, and by a mortgage of any such urban renewal projects, or any
part thereof, title to which is in the municipality. In addition, the
municipality may enter into an Indenture of Trust with any private
banking institution of this State having trust powers and may make
in such indenture of trust such covenants and commitments as may
be required by any purchaser for the adequate security of said bonds.

(b)  Bonds issued under this section shall not constitute an indebt-
edness within the meaning of any constitutional or statutory debt
limitation or restriction, shall not be subject to the provisions of any
other law or charter relating to the authorization, issuance or sale
of bonds, and are hereby specifically exempted from the restrictions
contained in Sections 9, 10 and 11 of Article 31 of the Annotated
Code of Maryland (1957 Edition, as amended). Bonds issued under
the provisions of this Article are declared to be issued for an essen-
tial public and governmental purpose and, together with interest
thereon and income therefrom, shall be exempted from all taxes.

(c)  Bonds issued under this section shall be authorized by resolu-
tion or ordinance of the legislative body of the municipality and may
be issued in one or more series and shall bear such date or dates,
shall mature at such time or times, bear interest at such rate or
rates, not exceeding six per centum per annum, be in such denomi-
nation or denominations, be in such form either with or without
coupon or registered, carry such conversion or registration priv-