524                                       LAWS OF MARYLAND                            [Ch.

3-122. BONDS ARE LEGAL INVESTMENTS.

BONDS AND NOTES ISSUED UNDER THIS SUBTITLE ARE
SECURITIES IN WHICH ALL PUBLIC OFFICERS AND PUBLIC
UNITS OF THE STATE AND ITS POLITICAL SUBDIVISIONS AND
ALL BANKS, TRUST COMPANIES, SAVINGS AND LOAN
ASSOCIATIONS, INVESTMENT COMPANIES, AND OTHERS
CARRYING ON A BANKING BUSINESS, ALL INSURANCE
COMPANIES, INSURANCE ASSOCIATIONS, AND OTHERS CARRYING
ON AN INSURANCE BUSINESS, ALL PERSONAL
REPRESENTATIVES, GUARDIANS, TRUSTEES, AND OTHER
FIDUCIARIES, AND ALL OTHER PERSONS MAY LEGALLY AND
PROPERLY INVEST FUNDS, INCLUDING CAPITAL IN THEIR
CONTROL OR BELONGING TO THEM. THE BONDS AND NOTES ARE
SECURITIES WHICH MAY PROPERLY AND LEGALLY BE DEPOSITED
WITH AND RECEIVED BY ANY STATE OR MUNICIPAL OFFICER OR
ANY UNIT OR POLITICAL SUBDIVISION OF THE STATE FOR ANY
PURPOSE FOR WHICH THE DEPOSIT OF BONDS OR OTHER
OBLIGATIONS OF THE STATE IS AUTHORIZED BY LAW.

REVISOR'S NOTE: This section is new language
derived from Article 33B, section 20 of the
Code.

3-123. BONDS NOT TO BE DEEMED STATE OR LOCAL DEBT.

BONDS OR NOTES ISSUED UNDER THE PROVISIONS OF
THIS SUBTITLE MAY NOT BE A DEBT OR A PLEDGE OF THE
FAITH AND CREDIT OF THE STATE OR OF ANY POLITICAL
SUBDIVISION. EVERY BOND OR NOTE SHALL CONTAIN ON ITS
FACE A STATEMENT TO THE EFFECT THAT NEITHER THE
SERVICE, THE STATE, NOR ANY POLITICAL SUBDIVISION
THEREOF IS OBLIGATED TO PAY IT OR THE INTEREST THEREON
EXCEPT FROM REVENUES OR OTHER MONEY OF THE SERVICE
AVAILABLE THEREFOR AND THAT NEITHER THE FAITH AND
CREDIT NOR THE TAXING POWER OF THE STATE OR ANY
POLITICAL SUBDIVISION IS PLEDGED TO THE PAYMENT OF THE
PRINCIPAL OF OR THE INTEREST ON THE BONDS OR NOTES.

REVISOR'S NOTE: This section is new language
derived from Article 33B, section 21 of the
Code.

3-124. EXEMPTION FROM TAXATION.

THE EXERCISE OF THE POWERS GRANTED BY THIS
SUBTITLE ARE FOR THE BENEFIT OF THE PEOPLE OF THE
STATE FOR THE IMPROVEMENT OF THEIR HEALTH AND LIVING
CONDITIONS. SINCE THE ACTIVITIES OF THE SERVICE AND
THE OPERATION AND MAINTENANCE OF ITS PROJECTS
CONSTITUTE THE PERFORMANCE OF ESSENTIAL GOVERNMENTAL