WILLIAM DONALD SCHAEFER, Governor

annual amount of bonds for the benefit of nongovernmental
persons that a state and its issuing authorities may issue]
(the "[unified] PRIVATE ACTIVITY volume limitation"); and

WHEREAS, In order to allow the orderly continuation of the
issuance of [nonessential function] PRIVATE ACTIVITY 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]
CREATED BY H.R. 3838 and THE CONFERENCE REPORT [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 AUGUST 15, 1986 THROUGH DECEMBER 31, 1986 [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]

[WHEREAS, This Proclamation amends the Executive Order dated
February 14, 1986 known as the Proclamation for Volume Cap
Allocation for State General Obligation Bonds Issued in 1986
(the "State Bond Proclamation"), by reducing the allocation
made to the Board of Public Works for State general
obligation bonds issued in 1986 from $30,000,000 to
$10,000,000; and]

WHEREAS, [This Proclamation does not amend or supersede]
Executive Order 01.01.1985.01 dated January 14, 1985, known
as the Proclamation on Private Activity Bond Allocations for
1985 and Later (the "Private Activity Bond Proclamation"),
as subsequently amended, BECAUSE OF ITS RESCISSION NO LONGER
APPLIES TO THE ISSUANCE OF PRIVATE ACTIVITY BONDS UNLESS
OTHERWISE PROVIDED HEREIN, so that Issuers issuing private
activity bonds under the Code must comply with [the Private
Activity Bond Proclamation and must also comply with] this
Proclamation [where both are pertinent to the bonds
involved]; and

WHEREAS, Advice has been solicited from representatives of
Issuers and other interested persons regarding the revised
allocation formula; and

WHEREAS, This Proclamation is intended to alter the method of
allocating the [unified] PRIVATE ACTIVITY volume limitation

3847