PARRIS N. GLENDENING, Governor

Ch. 40

WHICH DOES NOT EXCEED THE INTEREST COST TO THE MUNICIPALITY OF THE
PORTION OF THE BONDS SOLD TO THE FEDERAL GOVERNMENT.

(E)     IN CASE ANY OF THE PUBLIC OFFICIALS OF THE MUNICIPALITY WHOSE
SIGNATURES APPEAR ON ANY BONDS OR COUPONS ISSUED UNDER THIS APPENDIX
CEASE TO BE OFFICIALS OF THE MUNICIPALITY BEFORE THE DELIVERY OF THE
BONDS OR, IN THE EVENT ANY OF THE OFFICIALS HAVE BECOME SUCH AFTER THE
DATE OF ISSUE OF THEM, THE BONDS ARE VALID AND BINDING OBLIGATIONS OF
THE MUNICIPALITY IN ACCORDANCE WITH THEIR TERMS. ANY PROVISION OF ANY
LAW TO THE CONTRARY NOTWITHSTANDING, ANY BONDS ISSUED PURSUANT TO
THIS APPENDIX ARE FULLY NEGOTIABLE.

(F)     IN ANY SUIT, ACTION, OR PROCEEDING INVOLVING THE VALIDITY OR
ENFORCEABILITY OF ANY BOND ISSUED UNDER THIS APPENDIX, OR THE SECURITY
FOR IT, ANY BOND WHICH RECITES IN SUBSTANCE THAT IT HAS BEEN ISSUED BY
THE MUNICIPALITY IN CONNECTION WITH AN URBAN RENEWAL PROJECT SHALL BE
CONSIDERED CONCLUSIVELY TO HAVE BEEN ISSUED FOR THAT PURPOSE, AND THE
PROJECT SHALL BE CONSIDERED CONCLUSIVELY TO HAVE BEEN PLANNED,
LOCATED, AND CARRIED OUT IN ACCORDANCE WITH THE PROVISIONS OF THIS
APPENDIX

(G)    ALL BANKS, TRUST COMPANIES, BANKERS, SAVINGS BANKS, AND
INSTITUTIONS, BUILDING AND LOAN ASSOCIATIONS, SAVINGS AND LOAN
ASSOCIATIONS, INVESTMENT COMPANIES, AND OTHER PERSONS CARRYING ON A
BANKING OR INVESTMENT BUSINESS; ALL INSURANCE COMPANIES, INSURANCE
ASSOCIATIONS, AND OTHER PERSONS CARRYING ON AN INSURANCE BUSINESS; AND
ALL EXECUTORS, ADMINISTRATORS, CURATORS, TRUSTEES, AND OTHER
FIDUCIARIES, MAY LEGALLY INVEST ANY SINKING FUNDS, MONEYS, OR OTHER
FUNDS BELONGING TO THEM OR WITHIN THEIR CONTROL IN ANY BONDS OR OTHER
OBLIGATIONS ISSUED BY THE MUNICIPALITY PURSUANT TO THIS APPENDIX
HOWEVER, THE BONDS AND OTHER OBLIGATIONS SHALL BE SECURED BY AN
AGREEMENT BETWEEN THE ISSUER AND THE FEDERAL GOVERNMENT IN WHICH
THE ISSUER AGREES TO BORROW FROM THE FEDERAL GOVERNMENT AND THE
FEDERAL GOVERNMENT AGREES TO LEND TO THE ISSUER, PRIOR TO THE
MATURITY OF THE BONDS OR OTHER OBLIGATIONS, MONEYS IN AN AMOUNT
WHICH (TOGETHER WITH ANY OTHER MONEYS COMMITTED IRREVOCABLY TO THE
PAYMENT OF PRINCIPAL AND INTEREST ON THE BONDS OR OTHER OBLIGATIONS)
WILL SUFFICE TO PAY THE PRINCIPAL OF THE BONDS OR OTHER OBLIGATIONS WITH
INTEREST TO MATURITY ON THEM. THE MONEYS UNDER THE TERMS OF THE
AGREEMENT SHALL BE REQUIRED TO BE USED FOR THE PURPOSE OF PAYING THE
PRINCIPAL OF AND THE INTEREST ON THE BONDS OR OTHER OBLIGATIONS AT
THEIR MATURITY. THE BONDS AND OTHER OBLIGATIONS SHALL BE AUTHORIZED
SECURITY FOR ALL PUBLIC DEPOSITS. THIS SECTION AUTHORIZES ANY PERSONS OR
PUBLIC OR PRIVATE POLITICAL SUBDIVISIONS AND OFFICERS TO USE ANY FUNDS
OWNED OR CONTROLLED BY THEM FOR THE PURCHASE OF ANY BONDS OR OTHER
OBLIGATIONS. WITH REGARD TO LEGAL INVESTMENTS, THIS SECTION MAY NOT BE
CONSTRUED TO RELIEVE ANY PERSON OF ANY DUTY OF EXERCISING REASONABLE
CARE IN SELECTING SECURITIES.

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