HARRY HUGHES, Governor

925

(B) TERMS.

AN AGREEMENT UNDER THIS SECTION:

(1)  MAY ALLOW CHARGES FOR A BANKING SERVICE; OR

(2)  INSTEAD OF CHARGES, MAY:

(I)  ALLOW THE DEPOSIT OF MONEY WITH THE BANK OR
TRUST COMPANY IN AN AMOUNT THAT PERMITS THE BANK OR TRUST COMPANY
TO EARN SUFFICIENT COMPENSATION FOR ITS BANKING SERVICE; AND

(II)  REQUIRE THE BANK OR TRUST COMPANY TO
INVEST ANY MONEY ON DEPOSIT THAT EXCEEDS THE ALLOWED AMOUNT AND
TO PAY TO THE STATE THE PROCEEDS OF THE INVESTMENT.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 95, § 24.

The former reference to "other provisions ... relating
to the management of State funds" is deleted as
surplusage.

The Commission to Revise the Annotated Code notes, for
consideration by the General Assembly, whether the
defined term "financial institution" should be
substituted for the narrower references to a "bank or
trust company".

GENERAL REVISOR'S NOTE:

Former Art. 49A, § 2, which allowed the lawful investments
enumerated in ET § 15-106 to be accepted as security for public
deposits, is deleted as obsolete in light of the later-enacted
and specific requirements for collateral, in § 6-209 of this
subtitle and Art. 95, § 22 of the Code.

Former Art. 90, §§8 and 9, which provided for a surety bond
or other collateral from a depositary, are deleted as obsolete.

Before 1974, former Art. 95, § 21(a) required a depositary
to provide collateral "as provided for in Article 90, § 9". Ch.
731, Acts of 1974, added former Art. 95, § 21A and amended then
former Art. 95, § 21 to substitute a reference to former § 21A
for the cross-reference to "Article 90, § 9" and, thus, seemed to
preclude the further use of bonds and to negate the limitations
on the obligations listed in former Art. 90, § 9. In practice,
Ch. 731, Acts of 1974, has been so construed, although Ch. 501,
Acts of 1975, amended former Art. 90, § 9, to add a specific
reference to obligations of the Washington Suburban Sanitary
District.

TITLE 7. APPROPRIATIONS.

SUBTITLE 1. STATE OPERATING BUDGET.