WILLIAM DONALD SCHAEFER, Governor                   Ch. 742

(E)  THE TREASURER 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. 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 TO THE UNITED
STATES. THE TREASURER 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 STATE BONDS. ANY EXCESS
MONEYS HELD IN THE REBATE FUND WITH RESPECT TO AN ISSUE OF STATE
BONDS AFTER ALL REQUIRED REBATE PAYMENTS FOR THAT ISSUE HAVE BEEN
MADE, AS CERTIFIED BY THE TREASURER, SHALL BE DEPOSITED IN THE
GENERAL FUND.

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

(G)  FOR PURPOSES OF DOING WHATEVER IS 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, THE BOARD, THE
TREASURER, AND THE COMPTROLLER SHALL 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.

(H) THIS SECTION DOES NOT PREVENT THE BOARD FROM
AUTHORIZING THE ISSUANCE AND SALE OF STATE BONDS THE INTEREST ON
WHICH IS NOT EXCLUDABLE FROM GROSS INCOME FOR FEDERAL INCOME TAX
PURPOSES IF THE BOARD IN ITS AUTHORIZING RESOLUTION FINDS THAT TO
BE IN THE BEST INTERESTS OF THE STATE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act is
declared to be an emergency measure and necessary for the
immediate preservation of the public health and safety and having
been passed by a yea and nay vote supported by three-fifths of
all the members elected to each of the two Houses of the General
Assembly, it shall take effect from the date of its passage.

Approved June 2, 1987.

- 3329 -