WILLIAM DONALD SCHAEFER, Governor

reduce or reallocate such allocation after 30 days
prior written notice to, or after receiving the
consent of, such Local Issuer.

(b) Except in the case of allocations which may be made
to Municipal Corporations pursuant to Section 2 (b)
above, the Secretary may require any Local Issuer
other than a County to submit a request for an
allocation of the Maryland State Ceiling to or
through a County before the Secretary accepts such
request or makes any determination on such Local
Issuer's request.

Section 5. State and Local Issuers' Report. On September
15, 1986, each State and Local Issuer shall submit a report
approved in writing by its bond counsel to the Secretary
containing the following information:

(a)  The amount of the total allocation of the Maryland
State Ceiling allocated to the Issuer prior to
September 15, 1986;

(b)  The amount and type of nonessential function bonds
issued pursuant to the total allocation as of
September 15, 1986; and

(c)  The amount and type of nonessential function bonds
not issued but anticipated to be issued pursuant to
the Issuer's allocation, on or before September 30,
1986.

Section 6. Recapture and Reallocations.

(a)  Any portion of the Maryland State Ceiling, with
respect to which before October 1, 1986 (1) no bond
issue requiring an allocation has been issued, (2)
in the case of a public issue of bonds requiring an
allocation, no preliminary official statement has
been distributed by the underwriters, or (3) no
transfer of an allocation has been made by an Issuer
to a State Issuer pursuant to Section 8 below, shall
automatically revert to the State as of October 1,
1986 to be reallocated by the Secretary in
accordance with the criteria set forth in Section
2(d)(4) and (5) above, except that the Secretary may
also give priority according to the order in which
requests for reallocation are received. No Issuer
shall have the authority to carry forward any
allocation received prior to October 1, 1986.

(b)  Reallocations shall be made as follows:

(1) Special Rules for Housing Bonds. The unused

3825