398                               LAWS OF MARYLAND                        CH. 336]

principal and interest, 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 article; 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 article, 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 with
any private banking 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 such bonds.

(b)    Provisions. Bonds issued under this section shall not con-
stitute an indebtedness 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 (1967 Replacement Volume).
Bonds issued under the provisions of the article are declared to be
issued for an essential public and governmental purpose and, to-
gether with interest thereon and income therefrom, shall be ex-
empted from all taxes.

(c)    Issue. Bonds issued under this section shall be authorized by
resolution 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 per centum 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 privi-
leges, 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 provided by such resolution or trust indenture or mortgage issued
pursuant thereto.

(d)    Sale. 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 the par and
at an interest cost to the municipality of the portion of the bonds
sold to the Federal Government.

(e)    Officials. In case any of the public officials of the municipal-
ity 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