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LAWS OF MARYLAND

Ch. 491

Article 23 — Corporations

Section 161H-A

Annotated Code of Maryland

(1973 Replacement Volume and 1975 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 161H-A of Article 23
Corporations, of the Annotated Code of Maryland (1973
Replacement Volume and 1975 Supplement) be and it is
hereby repealed and reenacted, with amendments, to read
as follows:

Article 23 - Corporations

161H-A.

Upon application to and approval by the Director, an
association may act as a trustee or custodian within the
contemplation of the Federal Self-Employed Individuals
Tax Retirement Act of 1962, as amended, OR WITHIN THE
CONTEMPLATION OF THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED.

Associations exercising the powers authorized by
this section shall segregate all funds held in such
fiduciary capacities from the general assets of the
association and shall keep a separate set of books and
records, showing in detail all transactions made under
authority of this section.

Provided individual records are kept for each
self-employed individual's retirement plan and each
investment fund, AND FOR EACH INDIVIDUAL'S RETIREMENT
ACCOUNT, all funds held in such fiduciary capacities by
an association may be commingled for appropriate purposes
of investment.          No funds held in such fiduciary

capacities shall be used by an association in the conduct
of its business, although such funds may be invested in
savings accounts of the association in the event that the
trust, custodial or other plan does not prohibit such
investment.

In passing upon applications, the Director shall
take into consideration the investment policies, amount,
type and adequacy of reserves, fidelity bonds and any
legally required deposits of the applicant, and other
pertinent facts and circumstances, and may grant or
refuse the application accordingly.

If the Director shall not approve an application,
the association may appeal to the Board of Building,
Savings and Loan Association Commissioners in the manner
provided by § 161H (c).

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.