J. MILLARD TAWES, Governor                        277

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 Article
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 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 provi-
sions of this Article.

(6)  All banks, trust companies, bankers, savings banks and insti-
tutions, 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 asso-
ciations 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 obli-
gations issued by the municipality pursuant to this Article, 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 subdivisions 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.