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Or, in the alternative, the county council for Montgomery County may issue revenue bonds which shall be fully negotiable and payable, as to both principal and interest, solely from, and secured solely by, a pledge of and lien upon either or both, of the following (a) or (b):
(a) Income. Any and all of the income, receipts, proceeds, revenues, and funds derived from, or available or to be made available for, any undertakings for the accomplishment of the purposes and object mentioned in or contemplated by this article.
(b) Contracts. Any contract, or right thereunder existing between the United States of America, or any department or agency thereof, and the county council of Montgomery County with respect to any undertaking for the accomplishment of the purposes and objects of this article.
Any and all of such bonds, notes or obligations, issued as revenue bonds, shall not be general obligations of Montgomery County and shall not be a pledge of or involve the full faith and credit or taxing power of Montgomery County, and shall not pledge, convey or mortgage any real property owned by Montgomery County, and shall not constitute a debt of Montgomery County, within the meaning of the constitution of Maryland, or within the meaning of any other constitutional, statutory, or charter provisions, limiting or restricting the sale or issuance of bonds, notes or other obligations of Montgomery County. (Mont. Co. Code 1965, § 26-8; 1961, ch. 821, § 1.)
Revenue bonds issued under the provisions of this article are declared to be issued for an essential public and governmental purpose and the principal and interest thereon, and income therefrom, shall be exempt from all taxes as provided in section 56-13. Such revenue bonds shall be made payable, as to both principal and interest, solely from the income, proceeds, revenues, and funds of Montgomery County derived from or held in connection with its undertaking and carrying out of urban renewal projects under this article; provided, however, that payment of such bonds, both as to principal and interest, may be further secured by a pledge of any loan, grant or contribution from the federal government or other source, in aid of any urban renewal projects of Montgomery County under this article, and by a mortgage on any such urban renewal projects or any part thereof, title to which is in Montgomery County. (Mont. Co. Code 1965, § 26-9; 1961, ch. 821, § 1.)
Both the revenue bonds and general obligation serial bonds issued under this section shall be authorized by resolution of the county council for Montgomery County and may be issued in one (1) or more series and shall bear the date or dates, be payable upon demand or mature at the time or times, bear interest at the rate or rates, be in the denomination or denominations, be in the form either with or without coupon or registered, carry on the conversion or registration privileges, have the rank or priority, be executed in the manner, be payable in the medium of payment, at the place or places, and be subject to the terms of redemption (with or without premium), be secured in the manner, and have the other characteristics, as may be provided by the resolution or trust indenture or mortgage issued pursuant to this section. These bonds are not subject to the provisions of sections 9, 10, and 11 of article 31, Annotated Code of Maryland, 1957, as amended. (Mont. Co. Code 1965, § 26-10; 1961, ch. 821, § 1; 1979, ch. 155, § 1.)
Both the revenue bonds and general obligation serial bonds may be sold at not less than par at public sales held after notice published prior to such sale in a newspaper having a general circulation in the county and in such other medium of publication as the council may determine, or may be exchanged for other bonds on the basis of par; provided, that such bonds may be sold to the federal government at private sale at not less than par, and, in the event less than all of the authorized principal amount of such bonds is sold to the federal government, the balance may be sold at private sale at not less than par at an interest cost to the county not to exceed the interest of the portion of the bonds sold to the federal government. (Mont. Co. Code 1965, § 26-11; 1961, ch. 821, § 1.)
In case any of the public officials of Montgomery County whose signatures appear on any bonds or coupons issued under this article shall cease to be such officials before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery. (Mont. Co. Code 1965, § 26-12; 1961, ch. 821, § 1.)
In any suit, action or proceeding involving the validity or enforceability of any bond issued under this article or the security therefor, any such bond reciting in substance that it has been issued by Montgomery County in connection with an urban renewal project, as herein defined, shall be conclusively deemed to have been issued for such purpose and such project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of this article. (Mont. Co. Code 1965, § 26-13; 1961, ch. 821, § 1.)
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 county pursuant to this article; provided, that such 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 such bonds or other obligations, moneys in an amount which (together with any other money, irrevocably committed to the payment of principal and interest on such bonds or other obligations) will suffice to pay the principal of such bonds or other obligations with interest at maturity thereon, which moneys under the terms of such agreement are required to be used for the purpose of paying the principal of and the interest on such bonds or other obligations at their maturity. Such bonds and other obligations shall be authorized security for all public deposits. It is the purpose of this section to authorize any persons, political subdivisions and officers, public or private, to use any funds owned or controlled by them for the purchase of any such bonds or other obligations. Nothing contained in this section with regard to legal investments shall be construed as relieving any person of any duty of exercising reasonable care in selecting securities. (Mont. Co. Code 1965, § 26-14; 1961, ch. 821, § 1.)
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