WILLIAM DONALD SCHAEFER, Governor

CHIEF ELECTED OFFICIAL AFTER A PUBLIC HEARING
FOLLOWING REASONABLE PUBLIC NOTICE.

(b) Municipal Corporations.

(1)  The Secretary shall initially allocate TWO AND
ONE-HALF PERCENT [a portion] of the Maryland
State Ceiling [equal to fifty percent of the
amount allocated under the Private Activity
Bond Proclamation for municipal corporations]
to any or all of those Local Issuers which are
municipal corporations subject to the
provisions of Article XI-E of the Maryland
Constitution (a "Municipal Corporation") for
the issuance of any bond for which an
allocation is required under H.R. 3838.

(2)  The Secretary shall reserve allocations to
Municipal Corporations on a first come, first
served basis, after receipt of a written
request from a Municipal Corporation to make
such allocation.

(3)  Any such request shall include evidence that
the Municipal Corporation has complied with the
requirements for public notice, public hearing,
and public approval set forth in Section
[146(f)] 147(f) of H.R. 3838, a copy of a
letter from bond counsel for any proposed issue
of [nonessential function] PRIVATE ACTIVITY
bonds stating that the proposed bonds would be
[nonessential function] PRIVATE ACTIVITY bonds
for which an allocation would be necessary in
order to issue such bonds, and any other
information that the Secretary may require.

(4)  Any reservation of an allocation made by the
Secretary pursuant to this Section 2(b) shall
remain effective so long as the respective
[nonessential function] PRIVATE ACTIVITY bonds
for which such reservation is made are issued
within 60 calendar days from the date of such
reservation, except that, for good cause shown,
the Secretary may extend the expiration date of
any reservation. Upon issuance of such
nonessential function bonds within the 60
calendar day period of any extension made by
the Secretary, the reservation automatically
converts to an allocation pursuant to this
Proclamation. However, no such reservation
under this subsection shall be effective after
September 30, 1986.

3849