WILLIAM DONALD SCHAEFER, Governor
Section 6. Recapture and Reallocations

(a)  Any portion of the Maryland State Ceiling, with
respect to which before October 1, 1987 (1) no bond issue
requiring an allocation has been issued, (2) in the case of a
public issue of bonds requiring an allocation, no preliminary
official statement has been distributed by the underwriters with
the approval of the Issuer in connection with a public offering
of such bonds, or (3) no transfer of an allocation has been made
by an Issuer to a State Issuer pursuant to Section 8 below, shall
automatically revert to the State as of October 1, 1987 to be
reallocated by the Secretary in accordance with the criteria set
forth in Section 2(d)(4) and (5) above, except that the Secretary
may also give priority according to the order in which requests
for reallocation are received. No Issuer shall have the
authority to carryforward any allocation received prior to
October 1, 1987. Any portion of the Maryland State Ceiling which
is retained by a Local Issuer because of subsection (2) of this
Section 6(a) shall automatically revert to the State as of
November 15, 1987 if the bonds which are the subject of the
preliminary official statement have not been issued by November
14, 1987.

(b)  Reallocations shall be made as follows:

(1)  Special Rule for Community Development
Administration. The unused balance of that portion of the
Maryland State Ceiling initially allocated to the Community
Development Administration for Housing Bonds is hereby
reallocated to the Community Development Administration.

(2)  General Rules.

(A)  Issuers may request a reallocation
for a specific Project by filing with the Secretary a draft of
the information report required by Section 149(e) of the Code
(the "Information Report"), and the information required by
Sections 2(d)(4) and (5) above. The Secretary shall make a
reservation of any reallocation in writing.

(B)  A reservation made by the Secretary
under Section 6(b)(2)(A) above shall expire on the date specified
in the reservation.

(C)  The Issuer named on the draft
Information Report shall indicate either (1) on the draft
Information Report or (2) by cover letter attached to the draft
Information Report whether the proposed bond issue is being
privately placed or publicly sold and the type of Private
Activity Bonds to be issued.

(D)  A reservation shall automatically
convert to a reallocation at the time of the issuance and

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