3328

LAWS OF MARYLAND

Ch. 718

(10) a student loan guaranteed by the United States
or any of its agencies or by the Maryland Higher Education Loan
Corporation].

6-209.

(a) State money on deposit with a financial institution
shall be secured by:

(1) deposit insurance; or

(2) collateral as required by this section.

(b) (1) The collateral for State money on deposit with a
financial institution:

(i) must have, at all times, a market value
that equals or exceeds the State money that is on deposit with
the financial institution and is not covered by deposit
insurance; AND

(ii) must be approved by the Treasurer[; and

(iii) as to student loans guaranteed by the
Maryland Higher Education Loan Corporation, must be approved by
the Governor].

(2) Subject to the requirements of this subsection, a
financial institution may change its collateral from time to
time.

(c) (1) A custodian shall hold the collateral under this
section for the benefit of the State.

(2) A financial institution may use as a custodian:

(i) any banking institution that is approved by
the Bank Commissioner TO CONDUCT COMMERCIAL BANKING BUSINESS IN
THE STATE;

(ii) any national banking association that is
approved by the Comptroller of the Currency TO CONDUCT BANKING
BUSINESS IN THE STATE; or

(iii) any other bank or trust company that is
incorporated in another state and is approved by the banking
authority of the state where the bank or trust company has its
principal office A FEDERAL RESERVE BANK.

(3) A financial institution may not be approved as
custodian for the collateral of a depositary unless the assets of
the financial institution equal or exceed 200% of the value of
the collateral to be held for the depositary.