BLAIR LEE III, Acting Governor                              541

WHICH WERE ACTUALLY AND REASONABLY INCURRED BY HIM IN
CONNECTION WITH THE PROCEEDING.

(D)  EFFECT OF TERMINATION OF ANY SUIT OR PROCEEDING.
—THE 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
TEACHERS' RETIREMENT SYSTEM, AND WITH RESPECT TO A CRIMINAL
ACTION OR PROCEEDING, HAD REASONABLE CAUSE TO BELIEVE THAT
HIS CONDUCT WAS UNLAWFUL.

(E)  EXCEPTIONS TO INDEMNIFICATION. —INDEMNIFICATION
MAY NOT BE MADE {1) WITH RESPECT TO ANY SUIT, CLAIM, OR
MATTER AS TO WHICH THE PERSON WAS ADJUDGED TO BE LIABLE FOR
GROSS NEGLIGENCE OR WILFUL MISCONDUCT IN THE PERFORMANCE OF
HIS DUTY TO THE TEACHERS' RETIREMENT SYSTEM; OR (2) FOR AN
INDEPENDENT CONTRACTOR FURNISHING SERVICES TO THE TEACHERS'
RETIREMENT SYSTEMS.

(F)  INSURANCE PROVIDED. —THE STATE SHALL PROVIDE
INSURANCE FOR EVERY PERSON ELIGIBLE FOR INDEMNIFICATION
UNDER THIS SECTION AGAINST ANY LIABILITY ASSERTED AGAINST
HIM OR INCURRED BY HIM ARISING OUT OF HIS STATUS AS A
FIDUCIARY. THE STATE MAY PROVIDE SELF-INSURANCE FOR THIS
PURPOSE, IN WHOLE OR IN PART, UNDER TERMS AND CONDITIONS
SATISFACTORY TO THE STATE TREASURER. IF THE STATE FAILS TO
PROVIDE ADEQUATE INSURANCE COVERAGE, OR IF THE STATE FAILS
TO PROVIDE INDEMNIFICATION PURSUANT TO THIS SECTION, A
FIDUCIARY MAY NOT BE REQUIRED TO PAY AMOUNTS ATTRIBUTABLE TO
LIABILITY DESCRIBED IN THIS SECTION BY REASON OF THE FAILURE
OF THE STATE TO PROVIDE THE INDEMNIFICATION.

88. MANAGEMENT OF FUNDS.

(1) POWER AND LIMITATIONS OF BOARD. —THE BOARD OF
TRUSTEES SHALL BE THE TRUSTEES OF THE SEVERAL FUNDS CREATED
BY THIS SUBTITLE AS PROVIDED IN §89 OF THIS SUBTITLE, AND
SHALL HAVE FULL POWER TO INVEST AND REINVEST SUCH FUNDS,
SUBJECT TO ALL THE TERMS, CONDITIONS, LIMITATIONS AND
RESTRICTIONS IMPOSED BY THE LAW OF MARYLAND UPON LIFE
INSURANCE COMPANIES IN THE MAKING AND DISPOSING OF THEIR
INVESTMENTS; EXCEPT THAT THE BOARD MAY INVEST A MAXIMUM OF
50 PERCENT OF THE TOTAL FUNDS OF THE RETIREMENT SYSTEM IN
COMMON STOCKS, OF WHICH NOT MORE THAN 5 PERCENT MAY BE IN
NONDIVIDEND PAYING COMMON STOCKS. AND SUBJECT TO LIKE
TERMS, CONDITIONS, LIMITATIONS AND RESTRICTIONS, SAID
TRUSTEES SHALL HAVE FULL POWER TO HOLD, PURCHASE, SELL,
ASSIGN, TRANSFER AND DISPOSE OF ANY OF THE SECURITIES AND
INVESTMENTS IN WHICH ANY OF THE FUNDS CREATED HEREIN SHALL
HAVE BEEN INVESTED, AS WELL AS THE PROCEEDS OF SAID
INVESTMENTS AND ANY MONEY BELONGING TO SAID FUNDS.
NOTWITHSTANDING ANY OTHER PROVISIONS OF THE LAW TO THE
CONTRARY, THAT GROUND RENT REDEMPTION DEEDS, RELEASES OR
REASSIGNMENT OF MORTGAGES, SATISFACTIONS OR REASSIGNMENT OF
NOTES, CONVEYING, RELEASING OR REASSIGNING ANY INTEREST
OWNED BY THE STATE OF MARYLAND FOR THE USE OF THE TEACHERS'
RETIREMENT SYSTEM OF THE STATE OF MARYLAND, SHALL BE