WILLIAM DONALD SCHAEFER, Governor
Senate Bill No. 709

AN ACT concerning

Public Investments - United States Government
Obligations - Definition

FOR the purpose of amending the Rules of Interpretation of the
Annotated Code to provide for the investment, purchase, or
collateralization of an obligation, security, or other
interest in any open-end or closed-end investment company or
investment trust registered under the provisions of the
federal Investment Company Act of 1940, under certain
circumstances.

BY adding to

Article 1 - Rules of Interpretation

Section 31

Annotated Code of Maryland

(1987 Replacement Volume and 1987 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 1 - Rules of Interpretation

31.

WHENEVER ANY PROVISION OF THIS CODE AUTHORIZES OR PERMITS
DIRECT INVESTMENT IN, PURCHASE OF, OR COLLATERALIZATION BY A
BOND, OBLIGATION, OR OTHER EVIDENCE OF INDEBTEDNESS OF THE UNITED
STATES OF AMERICA, THE PROVISION AUTHORIZES AND PERMITS
INVESTMENT IN, PURCHASE OF, OR COLLATERALIZATION BY AN OBLIGATION
OR SECURITY OF, OR OTHER INTEREST 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) (1) 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) (2) 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.

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