J. MILLARD TAWES, GOVERNOR                             999

binding obligations of said municipality in accordance with their
terms. Any provision of any law to the contrary notwithstanding,
any bonds issued pursuant to this sub-heading shall be fully
negotiable.

(f)  In any suit, action or proceeding involving the validity or
enforceability of any bond issued under this sub-heading 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 sub-heading.

(g)  All banks, trust companies, bankers, savings banks and insti-
tutions, building and loan associations, savings and loan associations,
investment companies and other persons carrying on a banking or
investment business; all insurance companies, insurance associa-
tions, and other persons carrying on an insurance business; and all
executors, administrators, curators, trustees, and other fiduciaries,
may legally invest any sinking funds, monies, or other funds belong-
ing to them or within their control in any bonds or other obligations
issued by the municipality pursuant to this sub-heading, provided
that such bonds and other obligations shall be secured by an agree-
ment between the issuer and the Federal Government in which the
issuer agrees to borrow from the Federal Government and the Fed-
eral Government agrees to lend to the issuer, prior to the maturity
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 author-
ized security for all public deposits. It is the purpose of this section
to authorize any persons, political sub-divisions and officers, public
or private, to use any funds owned or controlled by them for the
purchase of any such bonds or other obligations. Nothing contained
in this section with regard to legal investments shall be construed
as relieving any person of any duty of exercising reasonable care
in selecting securities.

11. Separability

If any provision of this sub-heading, or the application thereof to
any person or circumstances, is held invalid, the remainder of the
sub-heading and the application of such provision to persons or cir-
cumstances other than those as to which it is held invalid, shall not
be affected thereby. The powers conferred by this sub-heading shall
be in addition and supplemental to the powers conferred by any
other law.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1961.

Approved May 3, 1961.