MARVIN MANDEL, Governor

901

enumeration and not in limitation, the Upper Potomac
River Commission, the State Roads Commission, county
school boards and other political subdivisions and bodies
politic of the State and any agency of any political
subdivision of the State, and the trustees or other
officers in charge of any pension or retirement system or
fund of the State or any political subdivision thereof or
any agency or department of either are hereby severally
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,] FEDERAL
GOVERNMENTAL AGENCIES issued pursuant to acts of
Congress, or to deposit said moneys in any bank or banks
in the State of Maryland or in any savings and loan
association or savings and loan associations or in any
building and loan association or building and loan
associations in interest—bearing time deposit and/or
savings accounts. Such deposits in banks or in savings
and loan associations or building and loan associations
shall only be made if the bank or savings and loan
associations or building and loan associations has
deposited a like amount of bonds in escrow, as now
prescribed by law, covering bank deposits, savings and
loan deposits, building and loan deposits, or if the
bank, savings and loan association or building and loan
association has given as security for these deposits any
of the types of collateral set forth in § 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be withdrawn or altered from time to time by the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 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.

Approved May 4, 1976.