WILLIAM DONALD SCHAEFER, Governor Ch. 698

(9)  The executive director of the State Investment Agency
shall submit a report on or before September 15 of each year to
the Board of Trustees on the performance and operation of the
Agency during the fiscal year concluded on the preceding June 30.
The Board may prescribe the format of the report and may require
such information as it deems appropriate.

(10)  (a) The State Treasurer shall be the custodian of the
annuity savings funds, accumulation funds, and expense funds of
the several systems. All payments from the funds shall be made
in accordance with rules adopted by the Board of Trustees, with
the approval of the State Treasurer.

(b)  The State Treasurer shall be the custodian of the
securities, investments, deposits, and funds of the State
Investment Agency.

(c)  The State Treasurer is authorized to enter into
arrangements with 1 or more duly qualified banks or trust
companies for the safe custody of investments, for banking
services, and for any other function considered necessary to
physically safeguard the assets managed by the State Investment
Agency.

(d)  Any of the securities purchased by the State
Investment Agency may be deposited in vaults or other safe
depositories outside the office of the State Treasurer, both in
and outside this State. A safekeeping receipt shall be delivered
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, 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.

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