WILLIAM DONALD SCHAEFER, Governor

industrial development, single-family and multi-family housing,
and certain other governmental programs financed by Private
Activity Bonds; and

WHEREAS, the provisions of the Tax Reform Act are effective
retroactively for state and local bonds issued after August 15,
1986; and

WHEREAS, the Tax Reform Act provides only interim authority
for the Governor of Maryland to proclaim a different State
Ceiling allocation formula for Maryland (the "Maryland State
Ceiling") under which Private Activity Bonds may be issued, which
authority will expire on the earlier of the effective date of
relevant state legislation or January 1, 1988; and

WHEREAS, the Conference Report to accompany the Tax Reform
Act (the "Conference Report") indicates that such state action
providing for a different State Ceiling allocation formula must
refer specifically to the new Private Activity Bond volume
limitation imposed by the Tax Reform Act (the "private activity
volume limitation"); and

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

WHEREAS, in order to allow the orderly continuation of the
issuance of 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") in a manner consistent with Private
Activity Bond needs of State and Local Issuers it is in the best
interests of the State of Maryland to establish guidelines for
the allocation of the Maryland State Ceiling among such Issuers
for the period beginning with the date hereof through December
31, 1987; and

WHEREAS, this Proclamation is intended to alter the method
of allocating the private activity volume limitation for Maryland
by establishing a different formula from that set forth in the
Tax Reform Act for allocating such private activity volume
limitation among State and Local Issuers.

NOW, THEREFORE, I, WILLIAM DONALD SCHAEFER, GOVERNOR OF
MARYLAND, DO HEREBY PROCLAIM the following formula for allocating
the Maryland State Ceiling as a substitute for the formula set
forth in the Tax Reform Act:

Section 1. Delegation to Secretary of Economic and
Community Development. The Governor hereby delegates to the
Secretary of Economic and Community Development (the "Secretary")
all authority to make any and all allocations, apportionments,
determinations, or findings required or permitted by this

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