108

LAWS OF MARYLAND

Ch. 23

(D) EXPLAINS ANY MATERIAL CHANGES TO THIS
PENSION SYSTEM DURING THE PERIOD OF THE REPORT.

120. MANAGEMENT OF FUNDS.

(1)   THE BOARD OF TRUSTEES SHALL BE THE TRUSTEES OF
THE SEVERAL FUNDS CREATED BY § 122 OF THIS SUBTITLE, AND MAY
INVEST AND REINVEST THESE FUNDS, SUBJECT TO THE TERMS,
CONDITIONS, LIMITATIONS, AND RESTRICTIONS IMPOSED BY THE LAW
OF MARYLAND ON DOMESTIC 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 THIS PENSION SYSTEM IN COMMON STOCKS, OF WHICH NOT MORE
THAN 5 PERCENT MAY BE IN NONDIVIDEND PAYING COMMON STOCKS
AND MAY INVEST A MAXIMUM OF 40 PERCENT OF THE TOTAL FUNDS IN
MORTGAGES AND DEEDS OF TRUST ON PROPERTIES LOCATED IN THE
STATE OF MARYLAND; AND SUBJECT TO LIKE TERMS, CONDITIONS,
LIMITATIONS, AND RESTRICTIONS, THE TRUSTEES MAY HOLD,
PURCHASE, SELL, ASSIGN, TRANSFER, AND DISPOSE OF ANY OF THE
SECURITIES AND INVESTMENTS IN WHICH ANY OF THE FUNDS CREATED
HEREIN HAVE BEEN INVESTED, AS WELL AS THE PROCEEDS OF THESE
INVESTMENTS AND ANY MONEY THAT BELONGS TO THESE FUNDS.
NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE GROUND-RENT
REDEMPTION DEEDS, RELEASES OR REASSIGNMENTS OF MORTGAGES,
SATISFACTIONS OR REASSIGNMENTS OF NOTES, CONVEYING,
RELEASING OR REASSIGNING ANY INTEREST OWNED BY THE STATE OF
MARYLAND FOR THE USE OF THIS PENSION SYSTEM, SHALL BE
EXECUTED BY ANY TWO OF THE FOLLOWING:

(I)   THE ASSISTANT SECRETARY OF PERSONNEL
FOR RETIREMENT SYSTEMS; OR

(II)  THE INVESTMENT ADMINISTRATOR; OR

(III) MORTGAGE ATTORNEY.

(2)   "INTEREST" FOR THE PURPOSES OF THE ACTUARIAL
VALUATIONS MEANS THE PERCENT RATE TO BE COMPOUNDED ANNUALLY
AS DETERMINED BY THE BOARD OF TRUSTEES ANNUALLY AFTER TAKING
INTO CONSIDERATION THE ACTUAL EARNINGS OF THIS SYSTEM FOR
THE PRECEDING YEARS AND THE PROBABLE EARNINGS OF THIS SYSTEM
TO BE MADE IN THE FUTURE.

(3)   THE STATE TREASURER SHALL BE THE CUSTODIAN OF THE
SEVERAL FUNDS. ALL PAYMENTS FROM THESE FUNDS SHALL BE MADE
BY HIM OR BY A DEPUTY TREASURER, ONLY ON VOUCHERS SIGNED BY
TWO PERSONS DESIGNATED BY THE BOARD OF TRUSTEES. AN
ATTESTED COPY OF A RESOLUTION OF THE BOARD OF TRUSTEES
DESIGNATING THESE PERSONS AND BEARING SPECIMEN SIGNATURES OF
THESE PERSONS SHALL BE FILED WITH THE TREASURER AS HIS
AUTHORITY FOR MAKING PAYMENTS ON THESE VOUCHERS. A VOUCHER
MAY NOT BE DRAWN UNLESS IT PREVIOUSLY HAS BEEN AUTHORIZED BY
RESOLUTION OF THE BOARD OF TRUSTEES.

(4)   TO MEET DISBURSEMENTS FOR ALLOWANCES AND OTHER
PAYMENTS, CASH MAY BE KEPT AVAILABLE, NOT EXCEEDING 10