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LAWS OF MARYLAND

[Ch. 501

MARYLAND, That Section 9 of Article 90 - Sureties, of the
Annotated Code of Maryland (1969 Replacement Volume and
1974 Supplement) be and it is hereby repealed and
re—enacted, with amendments, to read as follows:

Article 90 — Sureties

9.

When the surety or sureties on the bond of any bank
or trust company used as a depository for the funds of
the State Treasurer shall notify the Governor and the
State Treasurer of their or its desire to be relieved
from further liability as such surety, as provided in § 8
of this article, or when any new bond shall be given by
any bank or trust company, that may be used as a
depository for the funds of the State by the State
Treasurer, the State Treasurer, may in his discretion
accept from such bank or trust company, its bond,
conditioned, as provided by law, and, as surety
collateral to the said bond, instead of the surety
heretofore provided by law, bonds or other securities of
the United States, the Federal National Mortgage
Association, the Federal Home Loan Bank, the Federal Land
Bank or of the State of Maryland or the State Roads
Commission of Maryland at not exceeding 90% of their par
value or bonds of Baltimore City OR THE WASHINGTON
SUBURBAN SANITARY DISTRICT or of any county or municipal
corporation of this State, at not exceeding 80% of their
par value which may be approved by the State Treasurer to
the amount, in value, of the penalty of the bond, and
said amount shall be at all times maintained by said bank
or trust company; which bonds must be registered in the
name of said Treasurer, officially, as held in trust
under and pursuant to this section and the same shall be
held by such Treasurer in trust to secure the performance
of the conditions of the said bond; provided, however,
said Treasurer may, in his discretion, accept as surety
collateral any of said bonds in unregistered form upon
such conditions as he may prescribe with respect thereto.
Any such bank or trust company that may heretofore have
given the bond, as heretofore provided by law, may at any
time secure the cancellation of said bond and the
substitution of a bond with such securities as are
hereinbefore provided for, and any such bank or trust
company may at any time, withdraw from the State
Treasurer such collateral securities with the bond to
which the securities are attached and file, in lieu
thereof, such bonds as have heretofore been accepted by
the State Treasurer; provided that no substitution of the
bond with collateral or a bond with other securities for
the bond with collateral shall be made oftener than once
in each twelve months, or as the Treasurer may, in his
discretion, prescribe.