Pursuant to Public Act 88-258, this memorandum shall serve as official notice that the State's Tax-Exempt Proceeds Fund, Inc., is hereby established as a regulated investment company under section 851(a) of the Internal Revenue Code of 1986, as amended, and is hereby declared operational Monday, January 30, 1989. As of this date, state agencies should begin processing payment requests in the 80,000 series as further outlined in the November 30, 1988, General Memorandum entitled "Implementation of P.A. 88-258, An Act Concerning the Establishment of a Tax-Exempt Bond Proceeds Fund".

Under the provisions of P.A. 88-258, all recipients of grant or loan monies which are funded from the proceeds of State tax-exempt bond issues must receive and expend such funds only from the Tax-Exempt Proceeds Fund, Inc.

Completion of all forms required to establish accounts within the Tax-Exempt Proceeds Fund, Inc., is a necessary first step toward implementing P.A. 88-258. These forms are in the process of being sent to you by Reich and Tang, Inc., the fund manager retained by the State. Your help in promptly completing and returning these forms will facilitate the uninterrupted flow of funds from the State to municipal and other bond fund recipients.

Questions about the Fund and the drawdown procedures relating to it should be directed to Reich and Tang, Inc., at 1-800-221-3079.

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