WILLIAM DONALD SCHAEFER, Governor Ch. 415

(3)   "CODE" MEANS THE INTERNAL REVENUE CODE OF 1986
AND INCLUDES REGULATIONS AND RULINGS ISSUED UNDER THAT CODE.

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

(B)  THE SECRETARY, THE TREASURER, AND THE COMPTROLLER SHALL
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 DEPARTMENT'S BONDS.

(C)  (1) THE SECRETARY AND THE TREASURER SHALL 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 DEPARTMENT'S
BONDS.

(2) THE SECRETARY AND THE TREASURER SHALL 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 DEPARTMENT'S BONDS.

(D)  THE SECRETARY, THE TREASURER, AND THE COMPTROLLER SHALL
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 DEPARTMENT'S BONDS.

(E)  (1) THE SECRETARY, THE TREASURER, AND THE COMPTROLLER
SHALL 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, AND NO APPROPRIATION WILL BE
REQUIRED PRIOR TO PAYMENT OF ANY REQUIRED FROM THE REBATE
FUND TO THE UNITED STATES.

(4)  THE SECRETARY, THE TREASURER, AND THE COMPTROLLER
SHALL MAKE PAYMENTS FROM THE REBATE FUND AS MAY BE REQUIRED FROM
TIME TO TIME IN ORDER TO COMPLY WITH THE CODE AND TO MAINTAIN THE
EXCLUSION FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES OF
INTEREST ON THE DEPARTMENT'S BONDS.

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