HARRY HUGHES, Governor

905

The introductory language of this section, "[s]ubject
to the limitations in this subtitle and in any other
law," is substituted for the former, limited reference
"[e]xcept as provided in subsection (b) of [former
Art. 95, § 21]", to encompass the requirements for
approval, for consideration of student loans, and for
deposit insurance and collateral. See also Art. 49B,
§ 22(b) of the Code, which prohibits the use of a
financial institution that engages in discriminatory
practices.

The new defined term "financial institution" is

substituted for the former enumeration of

institutions. See   revisor's note to § 6-201(e) of
this subtitle.

The power to "designate" a financial institution "as a
depositary" is substituted for the former power to
"deposit the moneys", to reflect that other units of
the State government deposit the money in a depositary
that the Treasurer designates.

Defined term: "Financial institution" § 6-201

6-206. GUBERNATORIAL APPROVAL.

THE TREASURER MAY NOT DESIGNATE A FINANCIAL INSTITUTION AS A
DEPOSITARY UNLESS THE GOVERNOR APPROVES THE DESIGNATION.

REVISOR'S NOTE: This section is new language derived
without substantive change from the first sentence of
former Art. 95, § 21(a), as that sentence related to
gubernatorial approval.

The new defined term "financial institution" is
substituted for the former enumeration of
institutions, to clarify that gubernatorial approval
is required for a "bank" -- i.e., a State bank,
savings bank, national banking association, or bank of
another state.

Former Art. 95, § 21(a) referred to "banks as [the
Treasurer] may so select" and other institutions "as
he may, ... with the approval of the Governor, select"
and, therefore, suggested that gubernatorial approval
is not required for a bank. This suggestion would not
be inconsistent with the part of Md. Constitution,
Art. VI, § 3 that reads "and, until otherwise
prescribed by law, deposit [money], as soon as
received, to the credit of the State, in such bank or
banks as he may, ... with the approval of the
Governor, select (the said ... banks giving security,
satisfactory to the Governor ...)", if former Art. 95,
§ 21(a) were read as an exception "prescribed by law".