WILLIAM DONALD SCHAEFER, Governor

PROCLAMATION ON STATE BOND ALLOCATION
FOR CALENDER YEAR 1986

Amendments to Executive Order 01.01.1986.10

on Allocation of State Ceiling for Certain Bonds

Issued in 1986 and rescission of Executive

Orders 01.01.1985.01, as amended, and 01.01.1986.03

WHEREAS, As a result of the enactment of the Tax Reform Act of
1986 (the "Tax Reform Act") on October 22, 1986 it is
appropriate and desirable that (i) certain technical
amendments be made to Executive Order 01.01.1986.10
promulgated on May 28, 1986 (the "H.R. 3838 Proclamation")
in order to confirm its application to private activity
bonds (as defined in the Tax Reform Act) which may be issued
by State and Local Issuers and in order to simplify and
clarify procedures relating to the Maryland State Ceiling;
(ii) that Executive Order 01.01.1985.01, promulgated on
January 14, 1985, as amended, relating to private activity
bond allocations for 1985 and later be terminated and
cancelled; and (iii) that the Executive Order dated February
13, 1986 on the Volume Cap Allocation for State General
Obligation Bonds Issued in 1986 be rescinded.

WHEREAS, The Tax Reform Act provides only interim authority for
the issuance of private activity bonds (as defined in the
Tax Reform Act), pursuant to a gubernatorial proclamation,
which authority will expire for State and Local Issuers on
the later of January 1, 1988 or the effective date of any
State legislation with respect to the allocation of the
State Ceiling; and

WHEREAS, It is in the best interests of the State of Maryland to
act expeditiously in eliminating any uncertainty as to the
method of allocating the Maryland State Ceiling among State
and Local Issuers; and

WHEREAS, The amendments to the H.R. 3838 Proclamation are only
technical and clarifying in nature it is not necessary to
hold hearings prior to adopting these amendments; and

WHEREAS, Terms not otherwise defined herein shall have the
meanings given them in the H.R. 3838 Proclamation.

NOW, THEREFORE, I, Harry Hughes, Governor of the State of
Maryland, by virtue of the authority vested in me by the
Constitution and the Laws of the United States and of
Maryland, hereby rescind Executive Order 01.01.1985.01, as
amended by Executive Order 01.01.1985.18, Executive Order
01.01.1986.03, and amend Executive Order 01.01.1986.10,
issued on May 28, 1986, as follows:

EXECUTIVE ORDER

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