§49-15  Federal tax-exempt status;

preference; protection.  Revenue bonds issued under this chapter, to the

extent practicable, shall be issued so as to comply with requirements imposed

by valid federal law providing that the interest on the bonds shall be excluded

from gross income for federal income [tax] purposes (except as certain minimum

taxes or environmental taxes may apply).  The director of finance is authorized

to enter into such agreements, establish such funds or accounts and take any

action as required in order to comply with such valid federal law.  Nothing in

this chapter shall be deemed to prohibit the issuance of revenue bonds, the

interest on which may be included in gross income for federal income tax

purposes.

     For the purpose of ensuring that interest on

revenue bonds issued pursuant to this chapter which is excluded from gross

income for federal income tax purposes (except as provided above) on the date

of issuance shall continue to be so excluded, no county officer or employee or

user of an undertaking or loan program shall authorize or allow any change,

amendment, or modification to an undertaking or loan program financed or

refinanced with the proceeds of revenue bonds which change, amendment or

modification would affect the exclusion of interest on the revenue bonds from

gross income for federal income tax purposes unless the change, amendment, or

modification shall have received the prior approval of the director of

finance.  Failure to receive the approval of the director of finance shall

render any change, amendment, or modification void. [L 1989, c 80, pt of §3]