444                                 Laws of Maryland                        [Ch. 342

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-
ileges, 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 provided by such resolution or trust indenture or mortgage issued
pursuant thereto.

(d)  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.