282                             LAWS OF MARYLAND                      [CH. 152

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-
title, and by a mortgage of any such urban projects, or any part
thereof, title to which is the municipality. In addition, the munic-
ipality may enter into an Indenture of Trust with any private bank-
ing 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.

(1)   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 pro-
visions of this sub-title are declared to be issued for an essential public
and governmental purpose and, together with interest thereon and in-
come therefrom, shall be exempted from all taxes,

(2)   Bonds issued under this section shall be authorized by reso-
lution 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 percentum 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 privileges,
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 pro-
vided by such resolution or trust indenture or mortgage issued pur-
suant 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
part 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 sub-
title 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 bind-
ing 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-title shall be fully negotiable.

(5)   In any suit, action or proceeding involving the validity or