1064                            LAWS OF MARYLAND                      [CH. 602

8.    Encouragement of Private Enterprise.

The municipality, to the greatest extent it determines to be feasible
in carrying out the provisions of this subheading, shall afford maxi-
mum opportunity, consistent with the sound needs of the municipal-
ity as a whole, to the rehabilitation or redevelopment of any urban
renewal area by private enterprise. The municipality shall give con-
sideration to this objective in exercising its powers under this sub-
heading.

9.    General Obligation Bonds.

For the purpose of financing and carrying out of an urban renewal
project and related activities, the municipality may issue and sell
its general obligation bonds. Any bonds issued by the municipality
pursuant to this section shall be issued in the manner and within
the limitations prescribed by applicable law for the issuance and
authorizations of general obligation bonds by such municipality,
and also within such limitations as shall be determined by said
municipality.

10.    Revenue Bonds.

(a)  In addition to the authority conferred by Section 9 of this
subheading, 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 inter-
est, solely from the income, proceeds, revenues, and funds of the
municipality derived from or held in connection with its undertaking
and carrying out of urban renewal projects under this subheading;
provided, 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-
heading, 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 commit-
ments 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 Article are declared to be issued for an essential
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,