3018                                        JOINT RESOLUTIONS

trust company which renders services to the State in the
capacity of depository for State monies roust post
collateral for the protection of these monies in the
event of the financial failure of the bank or trust
company; and

WHEREAS, This collateral, which is limited to bonds
or securities of the United States and certain Federal
authorities and instrumentalities; the State of Maryland,
the State Roads Commission, Baltimore City, and any
county or municipal corporation in the State, must be
purchased by the bank or trust company acting as a
depository in in amount equal to -it least 100 percent of
the amount of State monies on deposit; and

WHEREAS, This collateral requirement represents a
considerable expense to the bank or trust company and, in
addition, results in the freezing of assets in such a
manner that the bank or trust company is unable to take
advantage of the fluctuating money market for investment
purposes; and

WHEREAS, This collateral requirement also represents
a considerable expense to the State of Maryland which
must account for and record collateral held by banks and
trust companies which have State funds on deposit; and

WHEREAS, In the United States Congress, a Resolution
has been introduced in the House of Representatives, has
recently passed the appropriate House committee, and is
expected to clear the House without difficulty; and

WHEREAS, This Resolution (HR 11221) calls for full
Federal coverage, through the Federal Deposit Insurance
Corporation, of all deposits of public monies, whether
State, county, or local, in banks and trust companies
used as depositories for such funds; and

WHEREAS, If enacted, this Federal legislation would
eliminate the need for the banks and trust companies in
Maryland to post collateral for State funds they hold on
deposit, with a resulting savings of expense to both the
State of Maryland and the banks; now, therefore, be it

RESOLVED BY THE GENERAL ASSEMBLY OF MARYLAND, That
the Maryland Delegation in the United States Congress be
urged to support the passage of House Resolution 11221
calling for 100 percent Federal coverage of all deposits
of public funds through the Federal Deposit Insurance
Corporation; and be it further

RESOLVED, That copies of this Resolution be
forwarded by the Secretary of the State of Maryland to
the Honorable Charles M. Mathias, Jr., the Honorable J.
Glenn Beall, Jr., the Honorable Clarence D. Long, the