Marvin Mandel, Governor                         627

760.

(b) Bonds issued under this section shall not constitute an in-
debtedness 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 restric-
tions contained in Sections 9, 10, and 11 of Article 31 of the Annotated
Code of Maryland (1957 Edition, as amended). The faith in credit
in the State of Maryland shall not be pledged to cover any indebtedness
caused by bonds issued under the provisions of this subtitle. Bonds
issued under the provisions of this [subheading] subtitle are declared
to be issued for an essential public and governmental purpose and,
together with interest thereon and income therefrom, shall be ex-
empted from all taxes.

(e)    In case any of the public officials, of the board, whose signa-
tures appear on any bonds or coupons issued under this [subheading]
subtitle shall cease to be such officials before the delivery of such
bonds, or in the event any such officials shall have become such after
the date of issuance thereof, said bonds shall nevertheless be valid
and binding obligations of said Authority in accordance with its
terms. Any provisions of any law to the contrary notwithstanding,
any bonds issued pursuant to this [subheading] subtitle shall be
fully negotiable.

(f)    All banks, trust companies, bankers, savings banks and in-
stitutions, building and loan associations, savings and loan associa-
tions, investment companies and other persons carrying on a banking
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 fiduciaries,
may legally invest any sinking funds, moneys or other funds belong-
ing to them or within their control in any bonds or other obligations
issued by the Authority pursuant to this [subheading] subtitle,
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 government agrees to lend to the issuer, prior to the
maturity of such bonds or other obligations, moneys in an amount
which (together with any other moneys irrevocably committed to
the payment of principal and interest on such bonds or other obliga-
tions) will suffice to pay the principal of such bonds or other obliga-
tions with interest to maturity thereon, which moneys under the
terms of said agreement are required to be used for the purpose of
paying the principal of and 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.

766.

If any section of this subtitle, or the application thereof to any
person or circumstance, is held invalid, the remainder of the subtitle