3528

LAWS OF MARYLAND

[Ch. 852

(B)    THE TERM "SERVICE IN A FIDUCIARY CAPACITY," AS
USED IN THIS SECTION, MEANS THE EXERCISE OF ANY
DISCRETIONARY AUTHORITY OR CONTROL CONCERNING THE
MANAGEMENT OR ADMINISTRATION OF THE STATE POLICE
RETIREMENT SYSTEM, OR THE EXERCISE OF ANY DISCRETIONARY
AUTHORITY OR CONTROL CONCERNING THE MANAGEMENT OR
DISPOSITION OF THE ASSETS OF THE SYSTEM. IT INCLUDES
MEMBERSHIP ON THE BOARD OF TRUSTEES OF THE STATE POLICE
RETIREMENT SYSTEM, MEMBERSHIP ON THE ADVISORY INVESTMENT
COMMITTEE, AND SERVICE AS INVESTMENT ADMINISTRATOR OR ON
HIS STAFF.

(C)    IF, WITH RESPECT TO A CIVIL, ADMINISTRATIVE,
OR INVESTIGATIVE ACTION, SUIT, OR PROCEEDING, THE PERSON
ACTED IN GOOD FAITH AND IN A MANNER HE REASONABLY
BELIEVED TO BE IN OR NOT OPPOSED TO THE BEST INTEREST OF
THE STATE POLICE RETIREMENT SYSTEM, AND, WITH RESPECT TO
A CRIMINAL ACTION, HAD NO REASONABLE CAUSE TO BELIEVE HIS
CONDUCT HAS UNLAWFUL, THEN INDEMNIFICATION SHALL BE
AGAINST THOSE EXPENSES, INCLUDING REASONABLE ATTORNEY'S
FEES, JUDGMENTS, FINES, AND ACCOUNTS PAID IN SETTLEMENT
WHICH WERE ACTUALLY AND REASONABLY INCURRED BY HIM IN
CONNECTION WITH THE PROCEEDING.

(D) TBS TERMINATION OF ANY SUIT OR PROCEEDING, IN
ANY MANNER, DOES NOT, OF ITSELF, CREATE A PRESUMPTION
THAT THE PERSON DID NOT ACT IN GOOD FAITH AND IN A MANNER
HE REASONABLY BELIEVED TO BE IN OR NOT OPPOSED TO THE
BEST INTEREST OF THE STATE POLICE RETIREMENT SYSTEM, AND
WITH RESPECT TO A CRIMINAL ACTION OR PROCEEDING, HAD
REASONABLE CAUSE TO BELIEVE THAT HIS CONDUCT WAS
UNLAWFUL.

(E) INDEMNIFICATION MAY NOT BE MADE WITH RESPECT
TO ANY SUIT, CLAIM, OR MATTER AS TO WHICH THE PERSON WAS
ADJUDGED TO BE LIABLE FOR NEGLIGENCE OR MISCONDUCT IN THE
PERFORMANCE OF HIS DUTY TO THE STATE POLICE RETIREMENT
SYSTEM. THE COURT IN WHICH THE ACTION WAS BROUGHT MAY
DETERMINE, UPON APPLICATION, THAT, DESPITE THE
ADJUDICATION OF LIABILITY, THE PERSON IS FAIRLY AND
REASONABLY ENTITLED TO INDEMNITY FOR THE EXPENSES WHICH
THE COUNT SHALL DEEM PROPER.

(F) THE STATE SHALL PROVIDE INSURANCE FOR EVERY
PERSON WHO IS SERVING IN A FIDUCIARY CAPACITY TO THE
STATE POLICE RETIREMENT SYSTEM AGAINST ANY LIABILITY
ASSERTED AGAINST HIM OR INCURRED BY HIM ARISING OUT OF
HIS STATUS AS A FIDUCIARY.

SECTION 4. AND BE IT FURTHER ENACTED, That this Act
shall not apply to any judgments, expenses, or fines
incurred in such judgments entered prior to July 1, 1975.