4192                                              EXECUTIVE ORDERS

8038 and the information required by Section 2(d)(4) above. The
Secretary shall make a reservation of any reallocation in
writing.

(2)  Such reservation shall expire 15 days after
its date for privately placed issues, and 21 days after its date
for a public sale of bonds or on December 31 of the calendar year
in which the reservation is made, whichever is first to occur.
The Secretary may extend the 15 day or 21 day reservation period,
as the case may be, if bond counsel for the specific Project
certifies that such extension is necessary to enable the Issuer
to issue the Private Activity Bonds for such Project in
compliance with the arbitrage provisions of Section 103 of the
Code.

(3)  The Issuer named on the draft IRS Form 8038
or by cover letter attached to the draft IRS Form 8038 shall
indicate whether the proposed bond issue is being privately
placed or publicly sold.

(4)  A reservation shall automatically convert
to a reallocation on the date or at the time of the issuance and
delivery of the Private Activity Bond if, before the expiration
of the applicable period set forth in subsection (b)(2) above:

(A)  the Private Activity Bond is issued;
and

(B)  The Secretary shall have received
either (i) a copy of the fully executed IRS Form 8038 or (ii) the
executed certification of the Issuer or its bond counsel
containing the information which is requested by Section 266G of
Article 41 of the Annotated Code of Maryland, as amended (the
"Section 266G Certificate").

(c) (1) No reallocations for carryforward projects
shall be made between October 1 and December 22, but applications
may be filed with the Secretary during this period.

(2) Beginning December 23 through December 31,
the Secretary shall make reallocations only for qualifying
carryforward projects from any portion of the remaining Maryland
State Ceiling under which no Private Activity Bonds have been
issued or of which the Secretary has made no allocation.

Section 7. Small Issue Exemption Consideration. The
issuance of Private Activity Bonds pursuant to an initial
allocation to an Issuer under Section 2 and pursuant to Section
103(b)(6) of the Code shall be accomplished in accordance with
the laws, regulations, policies, and procedures applicable to
that Issuer; however, to the extent not already required, an
Issuer shall consider before approval of the issuance of Private
Activity Bonds for any Project:

(a) The availability or feasibility of conventional