Ch. 509                             MARVIN MANDEL, Governor                                1135

period or the fifteen-year period provided in subsection (b) hereof.]]
11.

The Maryland Higher Education Loan Corporation shall be subject to the
supervision and examination of the Bank Commissioner, but shall not be deemed
to be a banking organization nor required to pay a fee for any such supervision or
examination. Such corporation shall make an annual report of its condition to the
Governor, the General Assembly, and the Bank Commissioner, Ion or before June
first of each year] AT THE END OF EACH FISCAL YEAR.

SECTION 2. AND BE IT FURTHER ENACTED, That Section 23 be and it
is hereby added to Article 95 of the Annotated Code of Maryland (1969
Replacement Volume and 1972 Supplement), title "Treasurer," to follow
immediately after Section 22 thereof, and to read as follows:

23.

(A)    NOTWITHSTANDING ANY PROVISION OF LAW TO THE
CONTRARY, THE TREASURER MAY INVEST AND REINVEST
MONEYS OF THE STATE IN OBLIGATIONS GUARANTEED BY THE
MARYLAND HIGHER EDUCATION LOAN CORPORATION PURSUANT
TO ARTICLE 43A OF THIS CODE, UNDER PROCEDURES, TERMS, AND
CONDITIONS, INCLUDING THE IMPOSITION OF SERVICE CHARGES,
AS THE TREASURER PRESCRIBES, BUT:

(1)   THE HOLDERS OF THE OBLIGATIONS SHALL BE BANKS
(INCLUDING COMMERCIAL BANKS, SAVINGS BANKS, TRUST
COMPANIES, SAVINGS AND LOAN ASSOCIATIONS, AND BUILDING
AND LOAN ASSOCIATIONS) APPROVED BY THE GOVERNOR;

(2)   THE TOTAL AMOUNT OF STATE MONEYS WHICH MAY BE
INVESTED AT ANY ONE TIME IN THE OBLIGATIONS SHALL NOT
EXCEED TEN MILLION DOLLARS ($10,000,000.00);

(3)   THE TREASURER SHALL NOT INVEST OR REINVEST IN THE
OBLIGATIONS HELD BY A PARTICULAR BANK EXCEPT TO THE
EXTENT THAT THE BANK'S VOLUME OF LOANS GUARANTEED BY
THE MARYLAND HIGHER EDUCATION LOAN CORPORATION
EXCEEDS ONE PERCENT (1%) OF THE BANK'S TOTAL DEPOSITS;

(4)  THE INVESTMENT OR REINVESTMENT OF STATE MONEYS IN
ANY ONE OF THE OBLIGATIONS SHALL NOT EXCEED EIGHTY
PERCENT (80%) OF THE PRINCIPAL AMOUNT OF THE PARTICULAR
OBLIGATION; AND

(5)   THE BANK HOLDING ONE OF THE OBLIGATIONS IN WHICH
STATE MONEYS ARE INVESTED, SHALL BE THE COLLECTING
AGENT FOR THE STATE WITH REGARD TO THE STATE'S PORTION
OF THE OBLIGATION.

(B)     IN ADDITION TO THE SECURITY IN THE FORM OF
COLLATERAL PROVIDED FOR IN SECTION 21 OF THIS ARTICLE AND
IN ARTICLE 90, SECTION 9, THE TREASURER, WITH THE APPROVAL
OF THE GOVERNOR MAY ACCEPT FROM BANKS, AS SECURITY FOR
DEPOSITS OF STATE MONEYS, OBLIGATIONS GUARANTEED BY THE
MARYLAND HIGHER EDUCATION LOAN CORPORATION PURSUANT
TO ARTICLE 43A OF THIS CODE.