Ch. 485                                    LAWS OF MARYLAND

(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)  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. THERE MAY BE SEPARATE ACCOUNTS
WITHIN THE REBATE FUND. AMOUNTS DEPOSITED TO THE REBATE FUND
SHALL BE USED ONLY FOR THE PURPOSE OF MAKING REBATE PAYMENTS, AND
NO APPROPRIATION WILL BE REQUIRED PRIOR TO PAYMENT OF ANY
REQUIRED REBATES FROM THE REBATE FUND TO THE UNITED STATES. THE
FINANCIAL OFFICER MAY MAKE PAYMENTS FROM THE REBATE FUND AS
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 BONDS. ANY EXCESS MONEYS HELD IN
THE REBATE FUND WITH RESPECT TO AN ISSUE OF BONDS AFTER ALL
REQUIRED REBATE PAYMENTS FOR THAT ISSUE HAVE BEEN MADE, AS
CERTIFIED BY THE FINANCIAL OFFICER, SHALL BE APPLIED IN A MANNER
CONSISTENT WITH THE CODE.

(F)  THE FINANCIAL OFFICER MAY PREPARE AND FILE FROM TIME TO
TIME WITH THE APPROPRIATE AGENCY OF THE UNITED STATES ANY FORMS,
INFORMATION, AND REPORTS WITH RESPECT TO THE BONDS AND THE
EXPENDITURE AND INVESTMENT OF PROCEEDS THAT MAY BE REQUIRED UNDER
THE CODE.

(G)  THE FINANCIAL OFFICER AND THE CHIEF EXECUTIVE OFFICER
OF THE PUBLIC BODY MAY EACH:

(1)  TAKE ANY OTHER OR FURTHER ACTIONS;

(2)  ENTER INTO ANY AGREEMENT OR COVENANT REGARDING,
THE USE OF PROCEEDS, INCLUDING ANY INVESTMENT EARNINGS ON
PROCEEDS, THE DEPOSIT OF MONEYS TO THE REBATE FUND AND THE MAKING
OF REBATE PAYMENTS; AND

(3)  PROVIDE CERTIFICATIONS OF FACTS AND ESTIMATES,
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.

(H) THIS SECTION DOES NOT PREVENT THE GOVERNING BODY OF A
PUBLIC BODY FROM AUTHORIZING THE ISSUANCE AND SALE OF BONDS THE
INTEREST ON WHICH IS NOT EXCLUDABLE FROM GROSS INCOME FOR FEDERAL
INCOME TAX PURPOSES.

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