collateralized with securities held by the pledging financial institution's trust department or agent in the Fund's
name. Category 3 includes deposits that are uncollateralized. At June 30, 1992, the Fund had deposits totalling
$440,119,000 and $143,558,000 categorized in Category 1 and Category 3, respectively.

Investments of the enterprise funds are stated at cost, adjusted for amortization of premiums and accretion of
discounts. The investment policies for all enterprise funds, with the exception of the Community Development
Administration, are the same as those of the State Treasurer. The Community Development Administration, an
agency of the Department of Housing and Community Development, is authorized to invest in obligations of the
U.S. Treasury, U.S. Government agencies and corporations, political subdivisions of the U.S., banker's
acceptances, repurchase agreements, corporate debt securities and certificates of deposit with foreign or
domestic banks. The U.S. Treasury and agency obligations and collateral for the repurchase agreements are held
by the fund's agent in the fund's name.

The Pension Trust Fund, in accordance with Article 73 B, Section 160 of the Annotated Code of Maryland, is
permitted to make investments subject to the terms, conditions, limitations, and restrictions imposed by the
Board of Trustees of the Maryland State Retirement and Pension Systems. The law further provides that not
more than 15% of the assets that are invested in common stocks may be invested in non-dividend paying common
stocks. The pension trust fund's investments are commingled in three combined investment funds. Two
investment funds consist principally of bonds and other fixed income investments while the other investment fund
consists principally of common stocks. Certain amounts totalling $583,677,000 (market value of $583,677,000) are
not invested in the investment funds, but are held as cash and cash equivalents. Investments of the pension trust
fund are stated at cost, adjusted for amortization of premiums and accretion of discounts.

The investments at June 30, 1992, for the enterprise and pension trust funds are as follows (amounts
expressed in thousands):

		Category		Carrying	Market
	1	2	3	Value	Value
U. S. Treasury and agency obligations ...............	$ 298,335			$ 298,335	$ 323,980
Repurchase agreements ..........................	369,752			369,752	369,840
Bonds .........................................	7,464,597			7,464,597	7,972,202
Corporate equity securities ........................	3,843,228			3,843,228	5,066,837
Other ..........................................	52,573			52,573	52,488
	$12,028,485			12,028,485	13,785,347
Annuity contracts ...............................				319,808	319,808
Mutual funds ...................................				698,292	624,481
Total ........................................				$13,046,585	$14,729,636

C. Higher Education Fund:

The bank deposits of the Higher Education Fund (Fund) at June 30, 1992, were $10,823,000. Of the bank
balances, $1,480,000 was covered by federal, private or foreign national government depository insurance,
$5,652,000 was collateralized by a pledge of United States Treasury obligations held by Federal Reserve banks in
the name of the banking institutions, and $5,977,000 was uninsured and uncollateralized.

Investment funds established by higher education institutions relate principally to endowment and trust
accounts required by debt instruments. In general, endowment funds can be invested in debt and equity securities
and trust accounts can be invested only in debt securities. These investments include U.S. Treasury and agency
obligations, certificates of deposit, commercial paper, repurchase agreements, bankers acceptances and money
market funds.

Investments of the higher education institutions are stated at cost, adjusted for amortization of premiums and
accretion of discounts.

The investments at June 30, 1992, for the higher education fund are as follows (amounts expressed in
thousands):

		Category		Carrying	Market
	1	2	3	Value	Value
U. S. Treasury and agency obligations ......................	$21,927			$21,927	$22,898
Corporate debt securities .................................	3,813			3,813	4,135
Corporate equity securities ...............................	25,073			25,073	36,991
Other .................................................	3,505			3,505	3,555
Total ................................................	$54,318			$54,318	$67,579

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