HARRY HUGHES, Governor

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(B)  THE STATE TREASURER SHALL BE THE CUSTODIAN
OF THE SECURITIES, INVESTMENTS, DEPOSITS, AND FUNDS OF THE
STATE INVESTMENT AGENCY.

(C)  THE STATE TREASURER IS AUTHORIZED TO ENTER
INTO ARRANGEMENTS WITH 1 OR MORE DULY QUALIFIED BANKS OR
TRUST COMPANIES FOR THE SAFE CUSTODY OF INVESTMENTS, FOR
BANKING SERVICES, AND FOR ANY OTHER FUNCTION CONSIDERED
NECESSARY TO PHYSICALLY SAFEGUARD THE ASSETS MANAGED BY THE
STATE INVESTMENT AGENCY.

(D)  ANY OF THE SECURITIES PURCHASED BY THE STATE
INVESTMENT AGENCY MAY BE DEPOSITED IN VAULTS OR OTHER SAFE
DEPOSITORIES OUTSIDE THE OFFICE OF THE STATE TREASURER . ,
BOTH IN AND OUTSIDE THIS STATE. A SAFEKEEPING RECEIPT SHALL
BE DELIVERED TO AND KEPT ON FILE BY THE STATE INVESTMENT
AGENCY FOR ALL SECURITIES SO DEPOSITED. THE SAFEKEEPING
RECEIPT SHALL DESCRIBE THE SECURITIES COVERED AND BE PAYABLE
ON DEMAND, WITHOUT CONDITIONS, TO THE STATE INVESTMENT
AGENCY OR TO ANY DESIGNATED FUND UNDER THE CONTROL OF THE
AGENCY OR TO THE STATE TREASURER.

(11)  THE STATE INVESTMENT AGENCY MAY INVEST AND
REINVEST ASSETS OF A FUND, SUBJECT TO ALL THE TERMS,
CONDITIONS, LIMITATIONS, AND RESTRICTIONS IMPOSED BY THE
LAWS OF MARYLAND UPON DOMESTIC LIFE INSURANCE COMPANIES IN
THE MAKING AND DISPOSING OF THEIR INVESTMENTS; EXCEPT THAT
THE AGENCY MAY INVEST A MAXIMUM OF 50 PERCENT OF THE TOTAL
FUNDS OF EACH SYSTEM IN COMMON STOCKS OF WHICH NOT MORE THAN
5 PERCENT MAY BE IN NONDIVIDEND PAYING COMMON STOCKS; AND
SUBJECT TO LIKE TERMS, CONDITIONS, LIMITATIONS, AND
RESTRICTIONS, THE AGENCY SHALL HAVE FULL POWER TO HOLD,
PURCHASE, SELL, ASSIGN, TRANSFER, AND DISPOSE OF ANY OF THE
SECURITIES AND INVESTMENTS IN WHICH ANY FUND SHALL HAVE BEEN
INVESTED, AS WELL AS THE PROCEEDS OF THE INVESTMENTS AND ANY
MONEYS BELONGING TO THE FUNDS. 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 A FUND SHALL BE EXECUTED BY ANY 2 OF THE
FOLLOWING: TREASURER OF THE STATE OF MARYLAND, EXECUTIVE
DIRECTOR OF THE STATE INVESTMENT AGENCY, OR ANOTHER EMPLOYEE
OF THE STATE INVESTMENT AGENCY AS DESIGNATED BY THE
EXECUTIVE DIRECTOR AND APPROVED BY THE BOARD OF TRUSTEES.

(12)  (A) UNDER THE SUPERVISION OF THE BOARD OF
TRUSTEES, THE STATE INVESTMENT AGENCY SHALL CONTROL AND
MANAGE ALL FUNDS AND MONEYS OF THE SEVERAL SYSTEMS EXCEPT
FUNDS WHICH BY LAW ARE REQUIRED TO BE CONTROLLED BY ANOTHER
BODY OR AUTHORITY.

(B) THE BOARD OF TRUSTEES SHALL BE DEEMED THE
OWNER OF ALL INVESTMENTS OF THE SEVERAL SYSTEMS BUT IT MAY
DELEGATE SOME OR ALL INCIDENTS OF OWNERSHIP TO THE STATE
INVESTMENT AGENCY FOR THE PURPOSE OF ADMINISTERING THE
INVESTMENT PORTFOLIOS OF THE SEVERAL SYSTEMS.