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ROBERT L. EHRLICH, JR., Governor H.B. 1324
(I) BANK, TRUST COMPANY, OR SAVINGS BANK INCORPORATED
UNDER THE LAWS OF THE STATE;
(II) BANK INCORPORATED UNDER FEDERAL LAW;
(III) BANK INCORPORATED UNDER THE LAWS OF ANY OTHER STATE;
OR
(IV) SAVINGS AND LOAN ASSOCIATION INCORPORATED UNDER THE
LAWS OF THE STATE OR OF THE UNITED STATES.
(B) NOTWITHSTANDING THE PROVISIONS OF § 22 OF THIS ARTICLE, A LOCAL
GOVERNMENT MAY DEPOSIT UNEXPENDED OR SURPLUS MONEY IN ANY FEDERALLY
INSURED BANK OR SAVINGS AND LOAN ASSOCIATION WITHOUT THE SECURITY
REQUIRED IN § 22(A) OF THIS ARTICLE IF:
(1) THE UNEXPENDED OR SURPLUS MONEY IS INITIALLY PLACED FOR
DEPOSIT WITH A STATE FINANCIAL INSTITUTION SELECTED BY THE DEPOSITOR;
(2) THE STATE FINANCIAL INSTITUTION SELECTED BY THE DEPOSITOR
ARRANGES FOR THE FURTHER DEPOSIT OF THE MONEY INTO ONE OR MORE
CERTIFICATES OF DEPOSIT OF NOT MORE THAN $100,000 EACH IN ONE OR MORE
FEDERALLY INSURED BANKS OR SAVINGS AND LOAN ASSOCIATIONS FOR THE
ACCOUNT OF THE DEPOSITOR;
(3) AT THE SAME TIME THE MONEY IS DEPOSITED AND THE
CERTIFICATES OF DEPOSIT ARE ISSUED FOR THE BENEFIT OF THE DEPOSITOR BY
OTHER BANKS OR SAVINGS AND LOAN ASSOCIATIONS, THE STATE FINANCIAL
INSTITUTION SELECTED BY THE DEPOSITOR RECEIVES AN AMOUNT OF DEPOSITS
FROM CUSTOMERS OF OTHER BANKS OR SAVINGS AND LOAN ASSOCIATIONS EQUAL
TO THE AMOUNT OF MONEY INITIALLY DEPOSITED BY THE DEPOSITOR;
(4) EACH CERTIFICATE OF DEPOSIT ISSUED FOR THE DEPOSITOR'S
ACCOUNT IS INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION FOR
100% OF THE PRINCIPAL AND ACCRUED INTEREST OF THE CERTIFICATE OF DEPOSIT;
AND
(5) THE STATE FINANCIAL INSTITUTION SELECTED BY THE DEPOSITOR
ACTS AS CUSTODIAN FOR THE DEPOSITOR WITH RESPECT TO THE CERTIFICATES OF
DEPOSIT ISSUED FOR THE DEPOSITOR'S ACCOUNT.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2005.
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May 26, 2005
The Honorable Michael E. Busch
Speaker of the House
State House
Annapolis, MD 21401
Dear Mr. Speaker:
- 4413 -
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