WILLIAM DONALD SCHAEFER, Governor                   Ch. 485

BOND PROCEED MANAGEMENT
31.

(A)  (1) IN THIS SECTION, THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(2)  "BONDS" MEANS GENERAL OBLIGATION BONDS OR NOTES,
REVENUE BONDS OR NOTES, OR OTHER EVIDENCES OF OBLIGATION BY
WHATEVER NAME KNOWN OR SOURCE OF FUNDS SECURED, ISSUED BY A
PUBLIC BODY.

(3)  "CHIEF EXECUTIVE OFFICER" MEANS THE COUNTY
EXECUTIVE, MAYOR, PRESIDENT, CHAIRMAN, OR SIMILAR OFFICIAL OF A
PUBLIC BODY.

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

(5)  "FINANCIAL OFFICER" MEANS THE CONTROLLER, THE
DIRECTOR OF FINANCE OR SIMILAR OFFICIAL OF A PUBLIC BODY.

(6)   "PUBLIC BODY" MEANS A MUNICIPAL CORPORATION
SUBJECT TO THE PROVISIONS OF ARTICLE 23A, A COUNTY, WHETHER
SUBJECT TO THE PROVISIONS OF ARTICLE 25, ARTICLE 25A, OR ARTICLE
25B, THE MAYOR AND CITY COUNCIL OF BALTIMORE, A SANITARY
COMMISSION OR DISTRICT, WHETHER ORGANIZED UNDER THE PROVISIONS OF
PUBLIC GENERAL OR PUBLIC LOCAL LAW, A PUBLIC CORPORATION OF THE
STATE, AND A DEPARTMENT, COMMISSION, AUTHORITY, PUBLIC
CORPORATION, AGENCY OR OTHER INSTRUMENTALITY OF A COUNTY OR A
MUNICIPAL CORPORATION, INCLUDING BALTIMORE CITY.

(7)  "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.

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