WILLIAM DONALD SCHAEFER, Governor Ch. 311

sufficient for all purposes the same as if he had remained in
office until delivery.

[(3)] (C) The bonds shall be sold in a manner, either
at public or private sale, and upon the terms as the legislative
body of the county deems best. Bonds issued under this [section]
SUBTITLE are not subject to the provisions of §§ 9, 10, and 11 of
Article 31 of the Code.

[(4)] (D) The bonds and the interest on them shall be
limited obligations of the county. The principal and interest
shall be payable solely from the revenue derived from interest,
mortgage insurance, casualty or special hazard insurance or other
insurance proceeds, condemnation proceeds, or other revenues
derived from the mortgage loans, property securing the loans, or
other payments or revenues derived from or relating to the making
of the loans. Neither the bonds nor interest coupons issued
under this [section] SUBTITLE shall ever constitute an
indebtedness or a charge against the general credit or taxing
powers of the issuing county within the meaning of any
constitution, county code provision or statutory limitation, and
neither shall ever constitute or give rise to any pecuniary
liability of the issuing county. On the advice of counsel, it
may be plainly stated on the face of each bond that it has been
issued under the provisions of this [section] SUBTITLE and that
it does not constitute an indebtedness to which the faith and
credit of the county is pledged.

[(5)] (E) All moneys received from the bonds shall be
applied solely for making funds available through mortgage
lending institutions only, for residential mortgage loans to low
and moderate income persons and families, establishing reserve
funds, paying the necessary expenses of the financing, or to
advance the payment of interest on the bonds during the first 3
years following the date of the bonds.

[(h)] 2-408. The county may issue new bonds to provide
funds for the payment of any outstanding bonds, in accordance
with the procedure prescribed by this [section] SUBTITLE and the
provisions of Section 24 of Article 31 of the Code. The new
bonds shall be secured to the same extent and shall have the same
source of payment as the bonds refunded.

[(i)] 2-409. Any program effecting the financing under this
section may provide for loan agreements, security agreements,
loan servicing agreements, forms of mortgages, notes and deeds of
trust, and other security, documents, agreements, provisions, and
other matter as the county may deem necessary or appropriate to
effect the financing of the program. A transaction under this
section shall in no event constitute a capital project within the
meaning of any charter or statutory provision. The transaction
shall be authorized by ordinance or resolution without any

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