J. MILLARD TAWES, GOVERNOR                              1525

project and related activities, and shall also have power to issue and
sell refunding revenue bonds for the payment or retirement of such
revenue bonds previously issued by it. Such revenue bonds shall be
made payable, as to both principal and interest, solely from the in-
come, proceeds, revenues, and funds of the municipality derived from
or held in connection with its undertaking and carrying out of urban
renewal projects under this Article XII-A; provided, 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 re-
newal projects of the municipality under this Article XII-A, and
by a mortgage of any such urban renewal projects, or any part
thereof, title to which is in the municipality. In addition, the mu-
nicipality 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.

(2)   Bonds issued under this section shall not constitute an in-
debtedness 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 re-
strictions 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 section are declared to be issued
for an essential public and governmental purpose and, together with
interest thereon and income therefrom, shall be exempted from all
taxes.

(3)   Bonds issued under this section shall be authorized by resolu-
tion or ordinance of the council 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 denomination or
denominations, be in such form either with or without coupon or
registered, carry such conversion or registration privileges, have
such rank or priority, be executed in such manner, be payable in
such medium or payment, at such place or places, and be subject to
such terms of redemption (with or without premium), be secured
in such manner, and have such other characteristics, as may be pro-
vided by such resolution or trust indenture or mortgage issued pur-
suant thereto.

(4) Such bonds may be sold at not less than par at public sales
held after notice published prior to such sale in a newspaper having
a general circulation in the area in which the municipality is located
and in such other medium of publication as the municipality may
determine or may be exchanged for other bonds on the basis of par:
provided, that such bonds may be sold to the Federal Government
at private sale at not less than par, and, in the event less than all
of the authorized principal amount of such bonds is sold to the
Federal Government, the balance may be sold at private sale at not
less than par at an interest cost to the municipality of not to exceed
the interest cost to the municipality of the portion of the bonds sold
to the Federal Government.