1344                             LAWS OF MARYLAND                        [CH. 615

termine 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 in-
terest cost to the municipality of the portion of the bonds sold to
the Federal Government.

(e)  In case any of the public officials of the municipality whose
signatures appear on any bonds or coupons issued under this sub-
heading 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 notwithstanding,
any bonds issued pursuant to this subheading shall be fully negotiable.

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

(g)  All banks, trust companies, bankers, savings banks and institu-
tions, building and loan associations, savings and loan associations,
investment companies and other persons carrying on a banking or
investment business; all insurance companies, insurance associations,
and other persons carrying on an insurance business; and all execu-
tors, administrators, curators, trustees, and other fiduciaries, 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 subheading, provided 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 Gov-
ernment 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 authorized
security for all public deposits. It is the purpose of this section to
authorize any persons, political subdivisions and officers, public or
private, to use any funds owned or controlled by them for the pur-
chase 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.