J. MILLARD TAWES, GOVERNOR                              1545

be secured in such manner, and have such other characteristics, as
may be provided by such resolution or trust indenture or mortgage
issued pursuant thereto.

(3) 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.

(4) In case any of the public officials of the municipality whose
signatures appear on any bonds or coupons issued under this Ar-
ticle shall cease to be such officials before the delivery of such
bond or, in the event any such officials shall have become such
after the date of issue thereof, said bonds shall nevertheless be valid
and binding obligations of said municipality in accordance with
their terms. Any provision of any law to the contrary notwith-
standing, any bonds issued pursuant to this Article shall be fully
negotiable.

(5)   In any suit, action or proceeding involving the validity or
enforceability of any bond issued under this Article or the security
therefor, any such bond reciting in substance that it has been issued
by the municipality in connection with an urban renewal project,
as herein defined, shall be conclusively deemed to have been issued
for such purpose and such project shall be conclusively deemed to
have been planned, located and carried out in accordance with
the provisions of this Article.

(6)   All banks, trust companies, bankers, savings banks and in-
stitutions, building and loan associations, savings and loan associa-
tions, investment companies and other persons carrying on a bank-
ing or investment business; all insurance companies, insurance
associations, and other persons carrying on an insurance business;
and all executors, administrators, curators, trustees, and other fidu-
ciaries, may legally invest any sinking funds, monies, or other funds
belonging to them or within their control in any bonds or other
obligations issued by the municipality pursuant to this Article, pro-
vided that such bonds and other obligations shall be secured by an
agreement between the issuer and the Federal Government in which
the issuer agrees to borrow from the Federal Government and the
Federal Government agrees to lend to the issuer, prior to the ma-
turity of such bonds or other obligations, monies in an amount which
(together with any other monies irrevocably committed to the pay-
ment of principal and interest on such bonds or other obligations)
will suffice to pay the principal of such bonds or other obligations
with interest to maturity thereon, which monies under the terms of
said agreement are required to be used for the purpose of paying
the principal of and the interest on such bonds or other obligations
at their maturity. Such bonds and other obligations shall be au-
thorized security for all public deposits. It is the purpose of this