§47-14  Federal tax-exempt status;preference; protection.  Bonds issued under this chapter, to the extentpracticable, shall be issued so as to comply with requirements imposed by validfederal law providing that the interest on those bonds shall be excluded fromgross income for federal income [tax] purposes (except as certain minimum taxesor environmental taxes may apply).  The director of finance is authorized toenter into arrangements, establish funds or accounts, and take any actionrequired in order to comply with any valid federal law.  Nothing in thischapter shall be deemed to prohibit the issuance of bonds, the interest onwhich may be included in gross income for federal income tax purposes.

For the purpose of ensuring that interest onbonds issued pursuant to this chapter which is excluded from gross income forfederal income tax purposes (except as provided above) on the date of issuanceshall continue to be so excluded.  No county officer or employee or user of anundertaking or loan program shall authorize or allow any change, amendment, ormodification to an undertaking or loan program financed or refinanced with theproceeds of the bonds which change, amendment or modification would affect theexclusion of interest on the bonds from gross income for federal income taxpurposes unless the change, amendment, or modification shall have received theprior approval of the director of finance.  Failure to receive the approval ofthe director of finance shall render any change, amendment, or modificationvoid. [L 1989, c 80, pt of §2]