PARRIS N. GLENDENING, Governor

Ch. 548

(4) The special fund and any sinking fund established by any municipal
corporation to provide for the payment of the principal of or interest on any bonds issued
by the municipal corporation under the provisions of this section may not be invested by
the fiscal officer of the municipal corporation having custody of the special fund and any
sinking fund except in the manner prescribed by Article 31, §§ 6 and 7 of the Code. Any
such fiscal officer having custody of the proceeds of sale of any such bonds may invest the
proceeds, pending the expenditure thereof, as prescribed under the provisions of Article
95, § 22 of the Code.

(h) The principal amount of the bonds, the interest payable on the bonds, their
transfer, and any income derived from the transfer, including any profit made in the sale
or transfer of the bonds, shall be exempt from taxation by the State and by the counties
and municipal corporations of the State but shall be included, to the extent required
under Title 8, Subtitle 2 of the Tax - General Article, in computing the net earnings of
financial institutions.

(i) (1) All bonds may be in bearer form or in coupon form or may be registrable
as to principal alone or as to both principal and interest. Each of the bonds shall be
deemed to be a security as defined in § 8-102 of the Commercial Law Article, whether or
not it is either one of a class or series or by its terms is divisible into a class or series of
instruments.

(2)     All bonds shall be signed manually or in facsimile by the chief executive
officer of the municipal corporation, and the seal of the municipal corporation shall be
affixed to the bonds and attested by the clerk or other similar administrative officer of the
municipal corporation. If any officer whose signature or countersignature appears on the
coupons ceases to be such officer before delivery of the bonds, the officer's signature or
countersignature shall nevertheless be valid and sufficient for all purposes the same as if
the officer had remained in office until delivery.

(3)     All bonds shall mature not later than 30 years from their date of
issuance.

(4)     All bonds shall be sold in the manner, either at public or private sale,
and upon the terms as the governing body of the municipal corporation deems best. Any
contract for the acquisition of property may provide that payment shall be made in bonds.
Bonds issued under this section are not subject to Article 31, §§ 9, 10, and 11 of the Code.

(j) Bonds issued under this section are securities:

(1)     In which all public officers and public bodies of the State and its political
subdivisions, all insurance companies, State banks and trust companies, national banking
associations, savings banks, savings and loan associations, investment companies,
executors, administrators, trustees and other fiduciaries may properly and legally invest
funds, including capital in their control or belonging to them; and

(2)     Which may properly and legally be deposited with and received by any
State or municipal officer or any agency or political subdivision of the State for any
purpose for which the deposit of bonds or obligations of the State is now or may hereafter
be authorized by law.

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