HARRY HUGHES, Governor

139

PENSION SYSTEM, ON DEPOSIT IN ONE OR MORE BANKS OR TRUST
COMPANIES IN THE STATE OF MARYLAND, ORGANIZED UNDER THE LAWS
OF THE STATE OF MARYLAND, OR OF THE UNITED STATES, IF THE
SUM ON DEPOSIT IN ANY ONE BANK OR TRUST COMPANY DOES NOT
EXCEED 25 PERCENT OF THE PAID-IN CAPITAL AND SURPLUS OF THE
BANK OR TRUST COMPANY.

(5) EXCEPT AS OTHERWISE HEREIN PROVIDED, A TRUSTEE OR
EMPLOYEE OF THE BOARD OF TRUSTEES MAY NOT HAVE ANY DIRECT
INTEREST IN THE GAINS OR PROFITS OF ANY INVESTMENT MADE BY
THE BOARD OF TRUSTEES. A TRUSTEE OR EMPLOYEE OF THE BOARD,
DIRECTLY OR INDIRECTLY, FOR HIMSELF OR AS AN AGENT, MAY NOT
USE, IN ANY MANNER, THE SAME EXCEPT TO MAKE THE CURRENT AND
NECESSARY PAYMENTS AS ARE AUTHORIZED BY THE BOARD OF
TRUSTEES. A TRUSTEE OR EMPLOYEE OF THE BOARD OF TRUSTEES
MAY NOT BECOME AN ENDORSER, SURETY, OR, IN ANY MANNER, AN
OBLIGOR, FOR MONEY LOANED TO OR BORROWED FROM THE BOARD OF
TRUSTEES.

149. INDEMNIFICATION OF PERSON SERVING IN FIDUCIARY
CAPACITY.

(1)   THE STATE SHALL INDEMNIFY EVERY PERSON WHO IS
MADE, OR IS THREATENED TO BE MADE, A PARTY TO ANY ACTION,
SUIT, OR PROCEEDING INCLUDING ADMINISTRATIVE AND
INVESTIGATIVE PROCEEDINGS BECAUSE OF HIS SERVICE IN A
FIDUCIARY CAPACITY TO THIS PENSION SYSTEM, IN ACCORDANCE
WITH AND SUBJECT TO THIS SECTION.

(2)   (A) IN THIS SECTION, "SERVICE IN A FIDUCIARY
CAPACITY" MEANS THE EXERCISE OF ANY DISCRETIONARY AUTHORITY
OR CONTROL CONCERNING:

(I)   THE MANAGEMENT OR ADMINISTRATION OF
THIS PENSION SYSTEM; OR

(II)  THE MANAGEMENT OR DISPOSITION OF THE
ASSETS OF THIS SYSTEM.

(B) "SERVICE IN A FIDUCIARY CAPACITY" INCLUDES:

(I)   MEMBERSHIP ON THE BOARD OF TRUSTEES
OF THIS PENSION SYSTEM;

(II)  MEMBERSHIP ON THE ADVISORY INVESTMENT
COMMITTEE; AND

(III) SERVICE AS INVESTMENT ADMINISTRATOR
OR ON HIS STAFF.

(C) IF, WITH RESPECT TO A CIVIL, ADMINISTRATIVE, OR
INVESTIGATIVE ACTION, SUIT, OR PROCEEDING, A PERSON ACTED IN
GOOD FAITH AND IN A MANNER HE REASONABLY BELIEVED TO BE IN
OR NOT OPPOSED TO THE BEST INTEREST OF THIS PENSION SYSTEM,
AND, WITH RESPECT TO A CRIMINAL ACTION, HAD NO REASONABLE
CAUSE TO BELIEVE HIS CONDUCT WAS UNLAWFUL, THEN
INDEMNIFICATION SHALL BE AGAINST THOSE EXPENSES, INCLUDING