EXECUTIVE ORDERS

(the "State Ceiling") and by providing a method of
allocating the State Ceiling among a state's issuing
authorities; and

WHEREAS, The State Ceiling imposed by H.R. 3838 would result in a
significant decrease in the dollar amount of bonds which
could be issued by Maryland issuing authorities for
industrial and commercial development, educational and
health care facilities, single-family and multi-family
housing, and certain other governmental programs financed by
nonessential function bonds; and

WHEREAS, The provisions of H.R. 3838, if enacted into law in its
present form, would be effective retroactively for state and
local bonds issued after December 31, 1985; and

WHEREAS, H.R. 3838 authorizes the Governor of Maryland to
proclaim a different State Ceiling allocation formula for
Maryland (the "Maryland State Ceiling") until the earlier of
the enactment of relevant state legislation or such date
provided in H.R. 3838, currently January 1, 1987; and

WHEREAS, Report No. 99-426 of the Committee on Ways and Means of
the United States House of Representatives accompanying H.R.
3838 indicates that such state action providing for a
different State Ceiling allocation formula may be taken
prior to the enactment of H.R. 3838, if such state action
refers specifically to the unified volume limitation imposed
by H.R. 3838 on the aggregate annual amount of bonds for the
benefit of nongovernmental persons that a state and its
issuing authorities may issue (the "unified volume
limitation"); and

WHEREAS, In order to allow the orderly continuation of the
issuance of nonessential function bonds by issuing
authorities of the State ("State Issuers") and by Maryland
issuing authorities other than State Issuers ("Local
Issuers") (collectively, "State and Local Issuers" or
Issuers") during this period of uncertainty when H.R. 3838
and other federal tax reform legislation is being
considered, it is in the best interests of the State of
Maryland to establish guidelines immediately for the
allocation of the Maryland State Ceiling among such issuers
for the period beginning with the date hereof, until the
earlier of (i) the effective date of any legislation enacted
by the Maryland General Assembly with respect to the
allocation of the Maryland State Ceiling or (ii) such date
provided in H.R. 3838, currently January 1, 1987; and

WHEREAS, This Proclamation will be amended or replaced after
applicable federal tax reform legislation has become law and
any amended or substitute Proclamation will be the subject
of hearing and comment before it is promulgated; and

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