WILLIAM DONALD SCHAEFER, Governor                   Ch. 311

(2)     If the notes or bonds are not then redeemable,

the redemption    price applicable on the first date after the

purchase upon    which the notes or bonds become subject to

redemption plus accrued interest to such date.

(o) Bonds or notes issued under this section 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 are securities which may properly and legally be
deposited with and received by any [State or municipal] officer
OF THE STATE OR ANY COUNTY OR MUNICIPAL CORPORATION or BY 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.

(p) Bonds or notes issued under the provisions of this
section are not a debt of, and do not pledge the faith, credit,
or taxing power of the State, the Administration, or any
political subdivision, but are payable solely from the revenues
and property provided for herein. The bonds or notes shall
contain on their face a statement to that effect.

(q) The bonds or notes of the Administration issued under
the provisions of this section, their transfer, the interest
payable thereon, and any income derived therefrom, including any
profit realized by the sale or exchange thereof, shall at all
times be exempt from taxation of every kind and nature whatsoever
by the State, or by any of its political subdivisions, municipal
corporations, or public units of any kind.

[11-307.] 2-207.

(a) A person may not knowingly make or cause any false
statement or report to be made in any document required to be
furnished to the Administration by any agreement relating to a
loan.

(b)  A person applying for a loan may not knowingly make or
cause any false statement or report to be made for the purpose' of
influencing the action of the Administration on a loan
application or for the purpose of influencing any action of the
Administration affecting a loan already made.

(c)  Any person who violates any provision of subsection   (a)
or (b) of this section is guilty of a misdemeanor and on
conviction is subject to a fine not exceeding $50,000 or
imprisonment not exceeding five years or both.

- 1725 -