EXECUTIVE ORDERS

Maryland Industrial Development Financing
Authority.

(d) Secretary's Reserve.

(1)  The portion of the Maryland State Ceiling not
initially allocated or reserved to State and
Local Issuers in accordance with Section 2(a),
(b), and (c) above is hereby allocated to the
State and constitutes the Secretary's Reserve
(the "Secretary's Reserve").

(2)  A portion of the Secretary's Reserve equal to
$7.50 multiplied by the State's population is
reserved exclusively for use in the issuance of
501(c)(3) bonds for 501(c)(3) organizations (as
defined in H.R. 338) which are not authorized
to be financed under Article 43C of the
Annotated Code of Maryland, as amended, by the
Maryland Health and Higher Educational
Facilities Authority. Through September 30,
1986, the Secretary shall make allocations for
501(c)(3) bonds only from the portion of the
Secretary's reserve set aside in this Section
2(d)(2).

(3)  The Secretary may at any time make an
allocation of a portion of the Secretary's
Reserve to any State or Local Issuer in any
amount and in any order that the Secretary in
his sole and absolute discretion determines for
facilities, projects, or financing ("Projects")
for which nonessential function bonds,
including 501(c)(3) bonds but excluding housing
bonds, may be issued and that the Secretary
determines are in accordance with the criteria
set forth in Sections 2(d)(4) and (5) below and
which were unforeseen or are special. Any
allocations for 501(c)(3) bonds shall be made
only from that portion of the Secretary's
Reserve set aside for 501(c)(3) bonds in
Section 2(d)(2) above.

(4)  In exercising discretion in the allocation of
the Secretary's Reserve, the Secretary shall
give highest priority to those Projects that
demonstrate readiness to proceed and that most
advance established State goals such as:

(A)  Creating significant job opportunities;

(B)  Locating job creating facilities in
enterprise zones or areas of high

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