Ch. 138

1995 LAWS OF MARYLAND

(E)     (1) THE FINANCIAL OFFICER MAY ESTABLISH A SEPARATE REBATE
FUND TO BE USED TO MAKE ANY PAYMENTS TO THE UNITED STATES WITH RESPECT
TO INVESTMENT EARNINGS ON PROCEEDS THAT MAY BE REQUIRED FROM TIME TO
TIME BY THE CODE.

(2)     THERE MAY BE SEPARATE ACCOUNTS WITHIN THE REBATE FUND.

(3)     AMOUNTS DEPOSITED TO THE REBATE FUND SHALL BE USED ONLY
FOR THE PURPOSE OF MAKING REBATE PAYMENTS TO THE UNITED STATES.

(4)     THE FINANCIAL OFFICER MAY MAKE PAYMENTS FROM THE REBATE
FUND AS MAY BE REQUIRED FROM TIME TO TIME IN ORDER TO:

(I)      COMPLY WITH THE CODE; AND

(II)     MAINTAIN THE EXCLUSION FROM GROSS INCOME FOR
FEDERAL INCOME TAX PURPOSES OF INTEREST ON A CAPITAL LEASE.

(5)     ANY EXCESS MONEYS HELD IN THE REBATE FUND WITH RESPECT
TO A CAPITAL LEASE AFTER ALL REQUIRED REBATE PAYMENTS FOR THAT CAPITAL
LEASE HAVE BEEN MADE, AS CERTIFIED BY THE FINANCIAL OFFICER, SHALL BE
APPLIED IN A MANNER CONSISTENT WITH THE CODE.

(F)     THE FINANCIAL OFFICER MAY PREPARE AND FILE FROM TIME TO TIME
WITH THE APPROPRIATE AGENCY OF THE UNITED STATES ANY FORMS,
INFORMATION, AND REPORTS WITH RESPECT TO EACH CAPITAL LEASE AND THE
EXPENDITURE AND INVESTMENT OF PROCEEDS THAT MAY BE REQUIRED UNDER
THE CODE.

(G)    THE FINANCIAL OFFICER AND OTHER OFFICERS OF A STATE UNIT MAY:

(1)     TAKE ANY OTHER OR FURTHER ACTIONS;

(2)     ENTER INTO ANY AGREEMENT OR COVENANT REGARDING THE USE
OF PROCEEDS, INCLUDING ANY INVESTMENT EARNINGS ON PROCEEDS, THE
DEPOSIT OF MONEYS TO THE REBATE FUND, AND THE MAKING OF REBATE
PAYMENTS; AND

(3)     PROVIDE CERTIFICATIONS OF FACTS AND ESTIMATES, THAT MAY BE
NECESSARY OR APPROPRIATE FROM TIME TO TIME TO COMPLY WITH THE CODE
AND TO ESTABLISH OR MAINTAIN THE EXCLUSION FROM GROSS INCOME FOR
FEDERAL INCOME TAX PURPOSES OF INTEREST ON A CAPITAL LEASE.

(H) NOTHING IN THIS SECTION SHALL PREVENT THE TREASURER FROM
ENTERING INTO A CAPITAL LEASE THE INTEREST ON WHICH IS NOT EXCLUDABLE
FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES.

. SECTION 2. AND BE IT FURTHER ENACTED, That the authority to enter into
capital leases and similar arrangements conferred on the Treasurer by this Act shall be
deemed to provide additional, alternative, and supplemental authority for financing the
acquisition of capital equipment and the acquisition and construction of real property
improvements and shall be regarded as additional and supplemental to the authority
conferred upon the Treasurer by other laws and may not be regarded as in derogation of

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