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LAWS OF MARYLAND

Ch. 33

OPERATED;

(4)       THE INVESTMENT POWERS OF THE TRUST COMPANY
WITH RESPECT TO THE FUND;

(5)       THE TERMS AND CONDITIONS THAT GOVERN ENTRY
IN AND WITHDRAWAL FROM THE FUND;

(6) THE AUDITING AND SETTLING OF ACCOUNTS OF THE
TRUST COMPANY WITH RESPECT TO THE FUND;

(7)       THE BASIS AND METHOD TO BE USED FOR VALUING
FUND ASSETS;

(8)       THE CIRCUMSTANCES AND MANNER IN WHICH THE
FUND MAY BE TERMINATED; AND

(9)      ANY OTHER MATTERS THAT ARE NECESSARY TO
DEFINE CLEARLY THE RIGHTS AND DUTIES OF THE TRUST COMPANY
AND FUND PARTICIPANTS.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11, §
62(5) (a), (b) (i) and (iii), as those paragraphs
relate to required statements, and (d).

The present law requires that a fund plan include
statements of certain provisions — e.g.,
intervals between audits and valuations of common
trust funds. However, it is clear from a reading
of the present law as a whole that the provisions
also are intended to be affirmative, substantive
requirements. Therefore, the revision sets out
the specific details of these provisions as
express requirements in §§ 3-513 and 3-516 of
this subtitle. The requirement that a fund plan
include a general statement as to these
provisions is retained in items (1), (2), and (6)
of this section.

3-506. OPTIONAL PROVISIONS FOR FUND PLANS.

(A) IN GENERAL.

A FUND PLAN MAY PROVIDE FOR:

(1)   THE AMORTIZATION OF PREMIUMS ON BONDS OR
OTHER OBLIGATIONS;

(2)   THE DISPOSITION OF DISCOUNTS, PROFITS, STOCK
RIGHTS, STOCK DIVIDENDS, AND EXTRAORDINARY DIVIDENDS;

(3)   THE ALLOCATION OR APPORTIONMENT BETWEEN
PRINCIPAL OR INCOME OF THE ITEMS SPECIFIED IN ITEM (2) OF
THIS SUBSECTION; AND

(4) ANY OTHER SIMILAR MATTERS.