HARRY HUGHES, Governor

219

PROCEEDS OF THESE INVESTMENTS AND ANY MONEY BELONGING TO
THESE FUNDS. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
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) THE 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
RESOLUTIONS OF THE BOARD OF TRUSTEES.

(4)   TO MEET DISBURSEMENTS FOR ALLOWANCES AND OTHER
PAYMENTS, CASH MAY BE KEPT AVAILABLE, NOT EXCEEDING 10
PERCENT OF THE TOTAL AMOUNT IN THE SEVERAL FUNDS OF THIS
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