HARRY HUGHES, Governor                                           799

officer, officially, as held by him for the purpose for which
said securities shall be purchased.

12.

(a) Any public body and any municipal corporation,
including the Mayor and City Council of Baltimore and those
municipal corporations subject to the provisions of Article XI-E
of the [State] MARYLAND Constitution, now or hereafter authorized
to issue its bonds or other obligations for any proper public
purpose, at one time or from time to time may issue and sell its
bond anticipation notes, in aggregate amount not greater than the
authorized amount of the bonds in anticipation of the sale of
which the notes are issued and sold, the principal of and
interest on the notes to be made payable to the bearer or
registered holder thereof out of the first proceeds of sale of
the bonds, or from the tax or other revenue which the public body
or municipal corporation shall have previously determined to
apply to the payment of the bonds and the interest thereon. The
proceeds of sale of the notes, after payment from the proceeds of
the expenses of the issuance of the notes, shall be expended only
on the public purposes for which the bonds are authorized.
Twelve months' interest on the notes, or any renewal thereof, may
be paid from the proceeds, or from the proceeds of the sale of
the bonds, accounting from the initial date of issue thereof.
The notes shall be authorized by ordinance, resolution, or other
form of official action customarily used by the public body or
municipal corporation, which shall cite the authority for the
notes and bonds and the amount authorized, shall fix the
maturities, interest rates or the manner of determining the same,
and other terms of such bond anticipation notes, the price or
prices at which the notes will be sold, which may be at, above or
below the face value thereof, or the manner of determining the
price or prices at which the notes will be sold and the manner of
their sale, which may be by private negotiation by the public
body or municipal corporation with a prospective purchaser or
purchasers if deemed by the public body or municipal corporation
to be for its best interest. The resolution or ordinance may
provide for the issuance of the notes, pursuant to the sale, in
series as funds are required, and may also provide for the
renewal of the notes at maturity with or without resale. All
such notes shall be signed, endorsed or guaranteed in the same
manner as shall be provided by law for the bonds in anticipation
of which the notes are issued, and no such notes shall be issued
under this subsection unless so signed, endorsed, or guaranteed.
Bond anticipation notes authorized by [this § 12(a)] SUBSECTION
(A) OF THIS SECTION may be issued as notes in the nature of
commercial paper and, if so issued, may, in the discretion of the
public body or municipality issuing the notes, be secured by a
trust indenture with a corporate trustee or trustees, which may
be any trust company or bank having the powers of a trust company
within or without the State, and by a letter of credit, line of
credit, or other credit arrangement from or with a bank or other
lending institution. The letter of credit, line of credit, or
other credit arrangement may be made payable out of the first