2528                                         LAWS OF MARYLAND                     [Ch. 731

directed, authorized and empowered to invest, redeem,
sell, exchange and reinvest all unexpended or surplus
moneys in any fund or account of which they have custody
or control either in bonds or other obligations for the
payment of principal and interest of which the faith and
credit of the United States of America are pledged, or in
obligations of the Federal National Mortgage Association,
federal land banks, federal intermediate credit banks or
banks for cooperatives, issued pursuant to acts of
Congress, or to deposit said moneys in any bank or banks
in the State of Maryland in interest—bearing time deposit
and/or savings accounts. Such deposits in banks shall
only be made [where] IF the bank has deposited a like
amount of bonds in escrow, as now prescribed by law,
covering bank deposits, OR IF THE BANK HAS GIVEN AS
SECURITY FOR THESE DEPOSITS ANY OF THE TYPES OF
COLLATERAL SET FORTH IN SECTION 21A OF THIS ARTICLE. The
interest or income from any such investment or deposit
shall be and become a part of the fund from which the
investment or deposit was made and may itself be so
invested or deposited, provided, however, that where the
fund so invested, or deposited constitutes the proceeds
of the issue of bonds or other obligations, the principal
of and/or interest on which the issuer is obligated to
repay to the holders thereof, the interest or income from
such investments may be used to pay the principal and/or
interest on the same by the issuer. Investments or
deposits made pursuant to this section may be withdrawn
or altered from time to time by the investing or
depositing officer or governing body either to meet the
requirements for which such funds are held or for
reinvestment pursuant to the terms hereof.

All such investments made prior to March 2, 1943,
are hereby legalized, validated, ratified and confirmed,
notwithstanding the absence of statutory authority
therefor or any inconsistent provision of law.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1974.

Approved May 31, 1974.

CHAPTER 732
(House Bill 640)

AN ACT concerning