MARVIN MANDEL, Governor                                 1593

(j) The board of trustees may in its discretion
adopt a generally accepted method of writing up the book
value of the common stock portion of the assets held by
the retirement system, provided that the annual amount of
any such write—up shall not exceed 3 per centum of the
total book value of the common stocks held as of the
determination date of the write—up. One half of the
amount of any such write—up shall be offset against the
employer contributions otherwise payable hereunder and,
notwithstanding any other provision of this article, the
other half shall be accumulated in a special account
under the Accumulation Fund to be used to provide all or
part of the cost of benefit improvements.

40.

(b) The Contribution Fund shall be established and
held separate and apart from any other funds or monies of
the State and shall be used and administered exclusively
for the purposes of this subtitle. Withdrawals from
such funds shall be made for and solely for:

(1)   Payment of amounts required to be paid to the
secretary of the treasury pursuant to an agreement
entered into under § 37; and

(2)    Refunds of over—payments not otherwise
adjustable made by a political subdivision or
instrumentality; and

(3)  Investing in short—term [government securities,
short—term securities of U.S. government agencies, and
short—term notes of corporations with at least a Double A
Moody's or Standard and Poors credit rating] CREDIT
INSTRUMENTS SUCH AS TREASURY BILLS, COMMERCIAL PAPER,
BANKER'S ACCEPTANCES, NEGOTIABLE CERTIFICATES OF DEPOSIT,
LOANS TO OR RE-PURCHASE AGREEMENTS WITH GOVERNMENT
SECURITIES DEALERS AND PROVIDING THAT ALL THESE
INVESTMENTS SHALL BE SUBJECT TO ALL THE TERMS,
CONDITIONS, LIMITATIONS AND RESTRICTIONS IMPOSED BY THE
LAWS OF MARYLAND ON INVESTMENT OF THE STATE RETIREMENT
SYSTEMS.

(4)    Payments to expense fund under § 40 (e) of
interest earned on investments; and

SECTION 2. AND BE IT FURTHER ENACTED, That new
Sections 9 (13) and (14) be and they are hereby added to
Article 73B — Pensions, of the Annotated Code of Maryland
(1970 Replacement Volume and 1973 Supplement) to read as
follows:

Article 73B — Pensions