WILLIAM DONALD SCHAEFER, Governor Ch. 246

AUTHORITY TO ISSUE BONDS, IT INCLUDES, TO THE EXTENT NECESSARY,
THE TREASURER AND THE COMPTROLLER.

(4) "PROCEEDS" MEANS MONEYS RECEIVED FROM THE SALE OF
BONDS, AND INCLUDES ANY MONEYS DEEMED TO BE PROCEEDS OF BONDS
UNDER THE CODE.

(B)  THE FINANCIAL OFFICER MAY ESTABLISH AND MAINTAIN FUNDS
AND ACCOUNTS FOR THE ADMINISTRATION, MANAGEMENT, INVESTMENT AND
ACCOUNTING OF PROCEEDS, INCLUDING ANY INVESTMENT EARNINGS ON
PROCEEDS, THAT MAY BE NECESSARY OR APPROPRIATE FROM TIME TO TIME
TO COMPLY WITH THE CODE AND TO ESTABLISH OR MAINTAIN THE
EXCLUSION FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES OF
INTEREST ON THE BONDS.

(C)  THE FINANCIAL OFFICER MAY MANAGE AND INVEST PROCEEDS,
INCLUDING ANY INVESTMENT EARNINGS ON PROCEEDS, IN A MANNER SO AS
TO MAINTAIN THE EXCLUSION FROM GROSS INCOME FOR FEDERAL INCOME
TAX PURPOSES OF INTEREST ON THE BONDS. THE FINANCIAL OFFICER MAY
RESTRICT THE YIELDS ON INVESTMENTS OF PROCEEDS IF AND TO THE
EXTENT NECESSARY TO MAINTAIN THE EXCLUSION FROM GROSS INCOME FOR
FEDERAL INCOME TAX PURPOSES OF INTEREST ON THE BONDS.

(D)  THE FINANCIAL OFFICER MAY PREPARE AND MAINTAIN RECORDS
OF THE RECEIPT, DEPOSIT, INVESTMENT, MANAGEMENT, DISBURSEMENT AND
APPLICATION OF PROCEEDS, INCLUDING ANY INVESTMENT EARNINGS ON
PROCEEDS, THAT MAY BE NECESSARY OR APPROPRIATE FROM TIME TO TIME
TO COMPLY WITH THE CODE AND TO MAINTAIN OR VERIFY THE EXCLUSION
FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES OF INTEREST ON
THE BONDS.

(E)  (1) THE FINANCIAL OFFICER MAY ESTABLISH A SEPARATE
REBATE FUND TO BE USED TO MAKE ANY PAYMENTS TO THE UNITED STATES
WITH RESPECT TO INVESTMENT EARNINGS ON PROCEEDS THAT MAY BE
REQUIRED FROM TIME TO TIME BY THE CODE.

(2)  THERE MAY BE SEPARATE ACCOUNTS WITHIN THE REBATE
FUND.

(3)  AMOUNTS DEPOSITED TO THE REBATE FUND SHALL BE
USED ONLY FOR THE PURPOSE OF MAKING REBATE PAYMENTS AND MAY NOT
BE DEEMED MONEYS OF THE STATE.

(4) AN APPROPRIATION MAY NOT BE REQUIRED PRIOR TO
PAYMENT OF ANY REQUIRED REBATES FROM THE REBATE FUND TO THE
UNITED STATES.

(5) (4) THE FINANCIAL OFFICER MAY MAKE PAYMENTS FROM
THE REBATE FUND AS MAY BE REQUIRED FROM TIME TO TIME IN ORDER TO:

(I) COMPLY WITH THE CODE; AND

- 1073 -