WILLIAM DONALD SCHAEFER, Governor                        S.B. 400

(b) Before reprinting a regulation under this section, a unit shall submit the
proposed text of the regulation to the Division of State Documents for comparison with
the official text.

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

May 26, 1994

The Honorable Thomas V. Mike Miller, Jr.

President of the Senate

State House

Annapolis, Maryland 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 400.

This bill would allow a financial institution to accept as collateral for a deposit made by
a financial institution a "fiduciary deposit surety bond" issued by an insurance company
authorized to do business in Maryland and would require the claims-paying ability of the
insurance company be rated in the highest category by at least two nationally recognized
rating agencies.

House Bill 731, which was passed by the General Assembly and signed by me on May 26,
1994, accomplishes the same purpose. Therefore, it is not necessary for me to sign Senate
Bill 400.

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 400

AN ACT concerning

Financial Institutions - Authorized Collateral

FOR the purpose of authorizing certain collateral for certain deposits of financial
institutions; defining a certain term; and generally relating to collateral for deposits
made by financial institutions.

BY adding to

Article - Financial Institutions

Section 1-206

Annotated Code of Maryland

(1992 Replacement Volume and 1993 Supplement)

- 3569 -