1416                             Laws of Maryland                      [Ch. 665

CHAPTER 665
(Senate Bill 567)

AN ACT to repeal and re-enact, with amendments, Section 9 of
Article 90 of the Annotated Code of Maryland (1969 Replacement
Volume), title "Sureties," subtitle "Countersecurity," to provide
that the State Treasurer may in his discretion accept as surety
collateral for the deposit of public funds, bonds or other securities
of the United States, the Federal National Mortgage Association,
the Federal Home Loan Bank, the Federal Land Bank or of the
State Roads Commission of Maryland; to provide for the accept-
ance of these bonds or securities authorized at not exceeding a cer-
tain percentage of their par value; and relating generally to the
laws of this State concerning security of deposits of State money
made by the Treasurer in depositories.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 9 of Article 90 of the Annotated Code of Maryland
(1969 Replacement Volume), title "Sureties," be and it is hereby
repealed and re-enacted, with amendments, to read as follows:

9.

When the surety or sureties on the bond of any bank or trust
company used as a depository for the funds of the State Treasurer
shall notify the Governor and the State Treasurer of their or its
desire to be relieved from further liability as such surety, as pro-
vided in: Section 8 of this article, or when any new bond shall be
given by any bank or trust company, that may be used as a deposi-
tory for the funds of the State by the State Treasurer, [it shall be
lawful for] the State Treasurer, may in his discretion accept [to
receive] from such bank or trust company, its bond, conditioned, as
provided by law, and, as surety collateral to the said bond, instead
of the surety heretofore provided by law, [registered public stock
and/or bonds of the United States or of the State of Maryland or
of Baltimore City or the bonds of any county or municipal corpora-
tion of this State, or of the Home Owners' Loan Corporation, a
corporation created by an act of the Congress of the United States,
approved June 13, 1933] bonds or other securities of the United
States, the Federal National Mortgage Association, the Federal
Home Loan Bank, the Federal Land Bank or of the State of Mary-
land or the State Roads Commission of Maryland at not exceeding
90% of their par value or bonds of Baltimore City or of any county
or municipal corporation of this State, at not exceeding 80 % of their
PAR value which [shall] may be approved by the State Treasurer to
the amount, in value, of the penalty of the bond, and said amount shall
be at all times maintained by said bank or trust company; which
[stock and/or] bonds must be registered in the name of said Treas-
urer, officially, as held in trust under and pursuant to this section
and the same shall be held by such Treasurer in trust to secure the
performance of the conditions of the said bond; provided, however,
said Treasurer may, in his discretion, accept as surety collateral
any of said [stock and/or] bonds in unregistered form upon such
conditions as he may prescribe with respect thereto. Any such bank
or trust company that may heretofore have given the bond, as
heretofore provided by law, may at any time secure the cancellation