§49-15  Federal tax-exempt status;preference; protection.  Revenue bonds issued under this chapter, to theextent practicable, shall be issued so as to comply with requirements imposedby valid federal law providing that the interest on the bonds shall be excludedfrom gross income for federal income [tax] purposes (except as certain minimumtaxes or environmental taxes may apply).  The director of finance is authorizedto enter into such agreements, establish such funds or accounts and take anyaction as required in order to comply with such valid federal law.  Nothing inthis chapter shall be deemed to prohibit the issuance of revenue bonds, theinterest on which may be included in gross income for federal income taxpurposes.

For the purpose of ensuring that interest onrevenue bonds issued pursuant to this chapter which is excluded from grossincome for federal income tax purposes (except as provided above) on the dateof issuance shall continue to be so excluded, no county officer or employee oruser of an undertaking or loan program shall authorize or allow any change,amendment, or modification to an undertaking or loan program financed orrefinanced with the proceeds of revenue bonds which change, amendment ormodification would affect the exclusion of interest on the revenue bonds fromgross income for federal income tax purposes unless the change, amendment, ormodification shall have received the prior approval of the director offinance.  Failure to receive the approval of the director of finance shallrender any change, amendment, or modification void. [L 1989, c 80, pt of §3]