§39-66  Federal tax-exempt status;preference; protection.  (a)  Revenue bonds issued pursuant to this part,to the extent practicable, shall be issued to comply with requirements imposedby applicable federal law providing that the interest on such revenue bondsshall be excluded from gross income for federal income tax purposes (except ascertain minimum taxes or environmental taxes may apply).  The department heador presiding officer of the governing body is authorized to enter intoagreements, establish funds or accounts and take any action required in orderto comply with applicable federal law.  Nothing in this part or this chaptershall be deemed to prohibit the issuance of revenue bonds, the interest onwhich may be included in gross income for federal income tax purposes.

(b)  For the purpose of insuring that intereston revenue bonds issued pursuant to this part which is excluded from grossincome for federal income tax purposes (except as provided in subsection (a))on the date of issuance shall continue to be so excluded, no state officer oremployee, or user of an undertaking or loan program shall authorize or allowany change, amendment, or modification to an undertaking or loan programfinanced or refinanced with the proceeds of revenue bonds which change,amendment, or modification thereto would affect the exclusion of interest onthose revenue bonds from gross income for federal income tax purposes unlessthe change, amendment, or modification shall have received the prior approvalof the department head or chairperson of the governing body.  Failure toreceive the approval of the department head or chairperson of the governingbody shall render any change, amendment, or modification void. [L 1988, c 28,pt of §3]