908

LAWS OF MARYLAND

Ch. 11

does not encompass the provisions derived from former
§ 21(a). However, since former § 21(a) imposed the
requirements for gubernatorial approval of a
depositary and for collateral, its inclusion within
the former reference to "this section" seemed to be
inadvertent.

Similarly, the substituted language does not encompass
the provisions of former § 21(c) -- i.e., the
provision that grants the exception, since necessarily
that provision applies.

The Commission notes, however, that, notwithstanding
the substitution of the narrower cross-reference,
former § 21(c) -- and the revision in subsection (c)
of this section -- relieves a financial institution of
the necessity to submit a certification if a parent
corporation or affiliate has made a loan without
participation of the institution. The General
Assembly may wish to clarify whether the financial
institution need not submit the certification or need
not consider, for purposes of its certification, the
loans in which the institution does not participate.

The Commission further notes that subsection (c) does
not address loans that a subsidiary makes without
participation of a parent financial institution.

The only other changes are in style.

Defined term: "Financial institution" § 6-201

6-209. DEPOSIT INSURANCE AND COLLATERAL.

(A)  REQUIRED.

STATE MONEY ON DEPOSIT WITH A FINANCIAL INSTITUTION SHALL BE
SECURED BY:

(1)  DEPOSIT INSURANCE; OR

(2)  COLLATERAL AS REQUIRED BY THIS SECTION.

(B)  FORM AND AMOUNT OF COLLATERAL.

(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;

(II)  MUST BE APPROVED BY THE TREASURER; AND