770

LAWS OF MARYLAND

Ch. 11

word "of" in the former phrase was intended to limit
former Art. 95, § 19 to, e.g., a quasi-public
corporation or whether, in fact, the phrase "in this
State" was intended. However, in light of the purpose
of this section, a reason for distinction among these
entities is not apparent and," therefore, the former
phrase is deleted.

Subsection (d) of this section is revised to state

affirmatively that a safe deposit company may permit

access only in the 3 enumerated situations. This

revision avoids the former stipulation that "the

Treasurer alone shall not ... have access", which
failed to account for the other enumerated officers or
for other individuals.

2-603. LOANS OF SECURITIES.

(A)  AUTHORIZED.

SUBJECT TO THE LIMITATIONS IN THIS SECTION AND
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE TREASURER MAY
LEND TO A BANK OR SECURITIES BROKER ANY SECURITY THAT IS OWNED BY
THE STATE AND IS IN THE CUSTODY OF THE TREASURER.

(B)  CONTRACT.

(1)  THE TREASURER AND THE BANK OR BROKER TO WHOM A
LOAN IS TO BE MADE UNDER THIS SECTION SHALL MAKE A WRITTEN
CONTRACT THAT GOVERNS THE LOAN.

(2)  THE CONTRACT SHALL SET FORTH:

(I)  THE TERM OF THE LOAN;

(II)  THE CONSIDERATION FOR THE LOAN;

(III)  ANY PROVISIONS THAT THE TREASURER
DETERMINES ARE NEEDED TO PROTECT THE INTERESTS OF THE STATE; AND

(IV)  ANY OTHER CONDITIONS OF THE LOAN.

(C)  CONSIDERATION.

CONSIDERATION FOR A LOAN UNDER THIS SECTION MAY NOT BE LESS
THAN THE CURRENT MARKET LENDING RATE FOR THE SECURITIES ON LOAN.

(D)  COLLATERAL.

(1) THE BANK OR BROKER TO WHOM A LOAN IS  TO BE MADE

UNDER THIS SECTION SHALL DEPOSIT WITH THE TREASURER    COLLATERAL

WITH A VALUE THAT EQUALS OR EXCEEDS THE VALUE OF THE   SECURITIES
ON LOAN.

(2) COLLATERAL THAT MAY BE USED UNDER THIS SECTION
SHALL BE: