MARVIN MANDEL, Governor                             2525

CHAPTER 731
(House Bill 625)
AN ACT concerning

State Funds — Collateralization

FOR the purpose of expanding the types of collateral a
bank or trust company used as a depository for State
monies may give as security for these atonies;
providing that this collateral is to be delivered to
a custodian for the benefit of the State, requiring
that certain reports pertaining to accounting for
such deposits be submitted to the State Treasurer,
and relating generally to collateralization of
public funds on deposit in banks and trust
companies.

BY adding to

Article 95 — Treasurer

Section 21A

Annotated Code of Maryland

(1969 Replacement Volume and 1973 Supplement)

BY repealing and re—enacting, with amendments,

Article 95 — Treasurer

Section 21 and 22

Annotated Code of Maryland

(1969 Replacement Volume and 1973 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Section 21A be and it is hereby added
to Article 95 — Treasurer, of the Annotated Code of
Maryland (1969 Replacement Volume and 1973 Supplement) to
read as follows:

Article 95 - Treasurer

21A.

(A) NOTWITHSTANDING ANY PROVISION OF THIS CODE TO
THE CONTRARY, ANY BANK OR TRUST COMPANY SELECTED AS A
DEPOSITORY FOR STATE MONIES ACCORDING TO SECTION 21 OF
THIS ARTICLE MAY GIVE AS SECURITY FOR THESE MONIES ANY OF
THE FOLLOWING TYPES OF COLLATERAL:

(1) OBLIGATIONS ISSUED, INSURED
GUARANTEED BY THE UNITED STATES GOVERNMENT;

OR