WILLIAM DONALD SCHAEFER, Governor

(C)  [(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 147(f) of the Code, a copy of
a letter from bond counsel for any proposed issue of Private
Activity Bonds stating that the proposed bonds would be
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.

(D)  [(4)] Any reservation of an allocation made by
the Secretary pursuant to this Section B(2)[2(b)] shall
remain effective so long as the respective 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
Private Activity Bonds within the 60 calendar day period or
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, 1987.

(3)  [(c)] State Issuers. A portion of the Maryland
State Ceiling is hereby initially allocated to the State to
be apportioned among State Issuers as follows:

(A) [(1)] Twenty-five percent of the Maryland
State Ceiling is allocated to the Community Development
Administration, a division of the State Department of
[Economic] HOUSING and Community Development, for the
issuance of Housing Bonds.

(4)  [(d)] Secretary's Reserve.

(A)  [(1)] The portion of the Maryland State
Ceiling not initially allocated or reserved to State and
Local Issuers in accordance with Section B(l), (2), AND (3)
[2(a), (b), and (c)] above is hereby allocated to the State
and constitutes the Secretary's Reserve (the "Secretary's
Reserve").

(B)  [(2)] The Secretary may at any time make an
allocation of a portion of the Secretary's Reserve to any
State or Local Issuer in any amount and in any order that
the Secretary in his sole and absolute discretion determines
for facilities, projects, or financings ("Projects") for
which Private Activity Bonds may be issued and that the
Secretary determines are in accordance with the criteria set
forth in Sections B(4)(D) and (E) [2(d)(4) and (5)] below.

(C)  [(3)] In exercising discretion in the
allocation of the Secretary's Reserve, the Secretary shall
give preference to the Projects of State Issuers that

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