EXECUTIVE ORDERS

NOW, THEREFORE, I, WILLIAM DONALD SCHAEFER, GOVERNOR OF THE
STATE OF MARYLAND, BY VIRTUE OF THE AUTHORITY VESTED IN
ME BY THE CONSTITUTION AND LAWS OF MARYLAND, HEREBY
PROCLAIM THE FOLLOWING ORDER EFFECTIVE IMMEDIATELY:

A. Definitions. In this Executive Order the following words have the meanings
indicated:

(1) "Allocation" means the total recommended volume of State Agency
Debt which may be issued by a State Agency during a fiscal year.

(2) "Board" means the Board of Public Works.

(3) "Ceiling" means the total recommended volume of State Agency Debt
which may be issued by all State Agencies during a fiscal year.

(4) "Department" means the Department of Budget and Fiscal Planning.

(5) "Independent Authority" means the Maryland Economic Development
Corporation, the Maryland Health and Higher Education Facilities Authority, and the
Maryland Higher Education Supplemental Loan Authority.

(6) "Independent Authority Debt" means a bond, note, bond anticipation
note, capital lease or any other evidence of indebtedness of an Independent Authority.

(7) "Secretary" means the Secretary of Budget and Fiscal Planning.

(8) "State Agency" means a department, agency, authority, unit, or other
entity of State government, financial operations of which are included, in whole or in
part, in the Comprehensive Annual Financial Report prepared by the State
Comptroller's Office.

(9) "State Agency Debt" means a bond, note, bond anticipation note,
capital lease, or any other evidence of indebtedness of a State Agency other than:

(a) Capital leases supported, in whole or in part, by tax revenues;

(b) Debt directly supported by tax revenues; and

(c) Private activity bonds as defined in the Internal Revenue Code.

(10) "State Debt" means a general obligation bond of the State.

(11) "Transaction" means the issuance of a bond, note, bond anticipation
note, capital lease or any other evidence of indebtedness by a State Agency or
Independent Authority.

B. The Department of Budget and Fiscal Planning is assigned the responsibility
of instituting a comprehensive planning and review system for State Agency debt.
Specifically, the Department shall:

(1) Review all State Agency debt issues;

(2) Arrange for centralized procurement, when appropriate;

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