WILLIAM DONALD SCHAEFER, Governor

(c) Any failure to comply with the provisions of this
Section 7 shall not in any way affect the validity
of any nonessential function bonds issued pursuant
to an allocation of the Maryland State Ceiling under
this Proclamation or the tax-exempt status of any
such nonessential function bonds, including the
tax-exempt status of interest on such nonessential
function bonds. However, notwithstanding any other
provisions of this Proclamation, any such failure
may be taken into consideration by the Secretary in
evaluating an Issuer's request for a reallocation or
in making any initial allocation for an Issuer in
subsequent years. The Secretary may reduce or
withhold all or any portion of an Issuer's initial
allocation for any subsequent year if it fails to
comply with the minority considerations of this
Section 7.

Section 8. Transfer of Allocation. Except as provided in
Section 4 with respect to the transfer of a County's
allocation to Local Issuers within its boundaries, an Issuer
receiving an allocation pursuant to this Proclamation may
not transfer any portion of its allocation to any other
Issuer except that, notwithstanding any applicable law,
charter, ordinance, or other corporate documents, any Issuer
receiving an allocation pursuant to this Proclamation may
transfer any portion of its allocation to a State Issuer.
The Secretary may at any time reallocate any such
transferred allocations in his sole and absolute discretion.

Section 9. Information Report.

(a)  Unless another Section of this Proclamation requires
a shorter time period, the Secretary shall receive a
copy of the fully executed Information Report filed
or to be filed with the IRS and the Section 266G
Certificate, if applicable, within 10 business days
after the date on which any Issuer issues
nonessential function bonds. The Secretary may
extend or waive this deadline for good cause shown.

(b)  Any nonessential function bond for which the fully
executed Information Report filed or to be filed
with the IRS or the Section 266G Certificate, if
applicable, is not received in accordance with this
Section shall be deemed not to have received an
allocation of the Maryland State Ceiling.

(c)  The Secretary may require earlier filing of the
final or draft Information Report and any other
forms or reports that the Secretary considers
necessary or desirable.

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