HARRY HUGHES, Governor

909

(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) CUSTODIAN OF COLLATERAL.

(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;

(II)  ANY NATIONAL BANKING ASSOCIATION THAT IS
APPROVED BY THE COMPTROLLER OF THE CURRENCY; 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.

(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.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 95, §
21A(a) through (c), § 23(b), and the second sentence
of § 21(a).

Subsection (a) of this section is revised to apply to
each financial institution that is used as a
depositary. This revision is based on the second
sentence of former Art. 95, § 21(a), which required
collateral to be given by "[t]hese depositories" --
i.e., all of the financial institutions. This
revision interprets the narrow reference, in former
Art. 95, §. 21A(a), to "any bank or trust company" to
result merely from a failure to amend former Art. 95,
§ 21A(a) when savings and loan associations were added
to the list of permissible depositaries. Similarly,
this revision interprets the word "banks", in former
Art. 95, § 23(b), to mean all financial institutions;
see revisor's note to § 6-207 of this subtitle.

In subsections (a) and (b) of this section, the new
defined terms "deposit insurance" and "collateral" are
substituted for the former reference to "security" in
the form of "the following types of collateral". This