Ch. 742

LAWS OF MARYLAND

federal income tax purposes; defining terras; and making this
Act an emergency measure.

BY adding to

Article - State Finance and Procurement

Section 8-130

Annotated Code of Maryland

(1985 Volume and 1986 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article -State Finance and Procurement

8-130.

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

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

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

(B)  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 STATE BONDS.

(C)  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 STATE BONDS. 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 STATE BONDS.

(D)  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 STATE BONDS.

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