220

LAWS OF MARYLAND

Ch. 24

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
REASONABLE ATTORNEY'S FEES, JUDGMENTS, FINES, AND ACCOUNTS
PAID IN SETTLEMENT THAT WERE ACTUALLY AND REASONABLY
INCURRED BY HIM IN CONNECTION WITH THE PROCEEDING.

(D)   THE TERMINATION OF ANY SUIT OR PROCEEDING, IN ANY
MANNER, DOES NOT, OF ITSELF, CREATE A PRESUMPTION THAT A
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 THIS PENSION SYSTEM, AND WITH RESPECT TO A
CRIMINAL ACTION OR PROCEEDING, HAD REASONABLE CAUSE TO
BELIEVE THAT HIS CONDUCT WAS UNLAWFUL.

(E)   INDEMNIFICATION MAY NOT BE MADE:

(I)   WITH RESPECT TO ANY SUIT CLAIM, OR MATTER
AS TO WHICH THE PERSON IS ADJUDGED TO BE LIABLE FOR GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT IN THIS SYSTEM; OR

(II)  FOR AN INDEPENDENT CONTRACTOR WHO PROVIDES
SERVICES TO THIS PENSION SYSTEM.

(F)   THE STATE MAY 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