WILLIAM DONALD SCHAEFER, Governor                         Ch. 675

CHAPTER 675
(House Bill 1444)

AN ACT concerning

Estates and Trusts - Minors and Disabled Persons Recovery by Minor in Tort -

Investment of Funds

FOR the purpose of expanding the type of obligations into which certain trustees may
invest certain funds; and generally relating to the protection of minors.

BY repealing and reenacting, with amendments,
Article - Estates and Trusts
Section 13-404(b)(l)
Annotated Code of Maryland
(1991 Replacement Volume and 1993 Supplement)

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

Article - Estates and Trusts

13-404.

(b) (1) A trustee who receives a check under § 13-403 of this subtitle shall:

(i) Subject to paragraph (3) of this subsection, deposit the check in
any financial institution as defined in § 13-301 of this title; or

(ii) Invest the proceeds of the check, directly or by securities or other
interests of a broker or dealer, in general obligations of or obligations guaranteed by the
United States or this State, OR OTHER OBLIGATIONS OF THE UNITED STATES OR THIS
STATE OR OF ITS POLITICAL SUBDIVISIONS, AGENCIES, AUTHORITIES, OR
MUNICIPAL CORPORATIONS THAT ARE RATED IN ONE OF THE TWO HIGHEST
RATING CATEGORIES BY A NATIONALLY RECOGNIZED CREDIT RATING AGENCY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1994.

Approved May 26, 1994.

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