Ch. 612                                          LAWS OF MARYLAND

(1)  in any obligation for which the United States has
pledged its faith and credit for the payment of the principal and
interest;

(2)  in any obligation that a federal agency issues in
accordance with an act of Congress;

(3)  in a repurchase agreement that any of these
obligations secures; tor]

(4)  with respect to bond sale proceeds only, in
bonds, notes, or other obligations of investment grade quality
(as established by a nationally recognized rating agency) issued
by or on behalf of this or any other state or any agency,
department, county, municipal or public corporation, special
district, authority, or political subdivision thereof, or in any
fund or trust that invests only in securities of the type
described in this paragraph; OR

(5)  IN SECURITIES OF, OR OTHER INTERESTS IN, ANY
OPEN-END OR CLOSED-END MANAGEMENT TYPE INVESTMENT COMPANY OR
INVESTMENT TRUST REGISTERED UNDER THE PROVISIONS OF THE FEDERAL
INVESTMENT COMPANY ACT OF 1940, 15 U.S.C. § 80A-1 ET SEQ., IF:

(I)  THE PORTFOLIO OF THE OPEN-END OR CLOSED-END
MANAGEMENT TYPE INVESTMENT COMPANY OR INVESTMENT TRUST IS LIMITED
TO DIRECT OBLIGATIONS OF THE UNITED STATES GOVERNMENT AND TO
REPURCHASE AGREEMENTS FULLY COLLATERALIZED BY UNITED STATES
GOVERNMENT OBLIGATIONS; AND

(II)  THE OPEN-END OR CLOSED-END MANAGEMENT TYPE
INVESTMENT COMPANY OR INVESTMENT TRUST TAKES DELIVERY OF THAT
COLLATERAL, EITHER DIRECTLY OR THROUGH AN AUTHORIZED CUSTODIAN.

(b) The Treasurer may sell, redeem, or exchange an
investment or reinvestment made under this section.

(C) (1) SUBJECT TO § 2-1312 OF THE STATE GOVERNMENT
ARTICLE, THE TREASURER SHALL REPORT BY JANUARY 3 OF EACH YEAR TO
THE GENERAL ASSEMBLY ON ANY INVESTMENTS MADE UNDER SUBSECTION
(A)(5) OF THIS SECTION.

(2) THE REPORT SHALL INCLUDE A DETAILED REVIEW OF:

(I) THE AMOUNT AND DURATION OF EACH INVESTMENT;

(II) THE NET INTEREST OR NET INCOME EARNED ON
THE INVESTMENT; AND

(III) ANY MANAGEMENT FEE OR OTHER FEES OR
EXPENSES PAID DIRECTLY BY THE TREASURER IN CONNECTION WITH THE
INVESTMENT.

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