802

LAWS OF MARYLAND

Ch. 173

to and kept on file by the State Investment Agency for all
securities so deposited. The safekeeping receipt shall describe
the securities covered and be payable on demand, without
conditions, to the State Investment Agency or to any designated
fund under the control of the Agency or to the State Treasurer.

(11) (a) Except as provided in paragraph (d) of this
subsection (11), the State Investment Agency may invest and
reinvest assets of a fund, subject to the terms, conditions,
limitations, and restrictions imposed by the Board of Trustees;
except that not more than 15 percent of the assets that are
invested in common stocks may be invested in nondividend paying
common stocks. Subject to like terms, conditions, limitations,
and restrictions, the Agency shall have full power to hold,
purchase, sell, assign, transfer, and dispose of any of the
securities and investments in which any fund shall have been
invested, as well as the proceeds of the investments and any
moneys belonging to the funds. Ground rent redemption deeds,
releases or reassignments of mortgages, satisfactions or
reassignments of notes conveying, releasing, or reassigning any
interest owned by the State of Maryland for the use of a fund
shall be executed by any 2 of the following: Treasurer of the
State of Maryland, executive director of the State Investment
Agency, or another employee of the State Investment Agency as
designated by the executive director and approved by the Board of
Trustees.

(b)  In setting the terms, conditions, limitations,
and restrictions on the Agency's investment powers, the Board of
Trustees is governed by the standards of care that are stipulated
under § 74 of this article.

(c)  The terms, conditions, limitations, and
restrictions that are adopted by the Board of Trustees are
included in the operations manual that is required under
subsection (4)(c)(iii) of this section.

(d)  (i) The Board of Trustees shall require the
external investment managers, from July 1, 1985 until June 30,
1987, not to make any new investments from net new funds
allocated to the managers in any stock, security, or other
obligation of any company that does business in or with the
Republic of South Africa and that does not qualify for exemption
under paragraph (ii) of this subsection.

(ii) The investment prohibition established
under paragraph (i) of this subsection does not apply to any
company that does business in or with the Republic of South
Africa if the company in the conduct of its business in South
Africa:

1. Has agreed to abide by the following
principles: