Ch. 569                                        1994 LAWS OF MARYLAND

(7)      an obligation of any other governmental authority in the State;

(8)      an obligation of the Inter-America Development Bank;

(9)      an obligation of the World Bank; [or]

(10)    A SURETY BOND ISSUED BY AN INSURANCE COMPANY AUTHORIZED
TO DO BUSINESS IN THIS STATE, THE CLAIMS PAYING ABILITY OF WHICH IS RATED,
IN THE HIGHEST CATEGORY BY AT LEAST TWO NATIONALLY RECOGNIZED
STATISTICAL RATING AGENCIES A SURETY BOND IF:

(I) NOT MORE THAN 5% OF THE FUNDS ARE COLLATERALIZED BY
A SURETY BOND;

(I) SUBJECT TO THE TERMS AND CONDITIONS OF THE BOND, IT IS
IRREVOCABLE AND ABSOLUTE;

(II) THE SURETY BOND IS ISSUED BY AN INSURANCE COMPANY
AUTHORIZED TO DO BUSINESS IN THIS STATE;

(III) THE ISSUER OF THE SURETY BONDS DOES NOT PROVIDE
SURETY BONDS FOR ANY ONE FINANCIAL INSTITUTION IN AN AMOUNT THAT
EXCEEDS 10% OF THE SURETY BOND INSURER'S POLICYHOLDERS' SURPLUS AND
CONTINGENCY RESERVE, NET OF REINSURANCE; AND

(IV) THE CLAIMS-PAYING ABILITY OF THE AUTHORIZED
INSURANCE COMPANY IS RATED, AT ALL RELEVANT TIMES, IN THE HIGHEST
CATEGORY BY AT LEAST TWO NATIONALLY RECOGNIZED RATING AGENCIES
ACCEPTABLE TO THE TREASURER; OR

[(10)] (11) 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) 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.

6-209.

(b) (1) The collateral for State money on deposit with a financial institution:

(i) must have, at all times, a market value that equals or exceeds the
State money that is on deposit with the financial institution and is not covered by deposit
insurance; and .

(ii) must be approved by the Treasurer.
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