WILLIAM DONALD SCHAEFER, Governor

Ch. 6

In the introductory language of subsection (b) of this section, the reference to
"the Board of Trustees" is added to clarify who has the authority to make an
allocation or designation with respect to the responsibilities of fiduciaries.

In subsection (c) of this section, the references to "Board of Trustees" are
substituted for the former references to "trustees" to clarify that an allocation
or designation of responsibilities of fiduciaries is made by the Board of
Trustees and not by an individual trustee.

In subsection (c)(1) of this section, the references to a "designation" are
substituted for the former references to a "delegation" for consistency.

In subsection (c)(2) of this section, the reference to a "person" is substituted
for the former reference to a "trustee" to reflect that responsibilities,
obligations, or duties may be allocated to persons other than trustees.

Defined terms: "Board of Trustees" § 20-101
"Fiduciary" § 21-201
"Person" § 20-101
"Several systems" § 20-101

21-205. PROHIBITED TRANSACTIONS INVOLVING SYSTEM ASSETS.

IN EXERCISING AUTHORITY, CONTROL, OR DISCRETION WITH RESPECT TO THE
SEVERAL SYSTEMS, A FIDUCIARY MAY NOT:

(1)      USE THE ASSETS OF THE SEVERAL SYSTEMS FOR THE FIDUCIARY'S
OWN INTEREST OR ACCOUNT;

(2)      ACT IN A TRANSACTION INVOLVING THE SEVERAL SYSTEMS ON
BEHALF OF A PERSON, OR REPRESENT A PERSON, IF THE INTERESTS OF THE PERSON
ARE ADVERSE TO THE INTERESTS OF THE SEVERAL SYSTEMS OR THE INTERESTS OF
PARTICIPANTS;

(3)      RECEIVE ANY CONSIDERATION FOR THE FIDUCIARY'S OWN
ACCOUNT FROM A PERSON DEALING WITH THE SEVERAL SYSTEMS IN CONNECTION
WITH A TRANSACTION INVOLVING THE ASSETS OF THE SEVERAL SYSTEMS; OR

(4)      BECOME AN ENDORSER OR SURETY OR, IN ANY MANNER, AN
OBLIGOR, FOR MONEY LENT TO OR BORROWED FROM THE BOARD OF TRUSTEES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, § 1-205.

In items (2) and (3) of this section, the broader term "person" is substituted
for the former term "party" for consistency.

Defined terms: "Board of Trustees" § 20-101
"Fiduciary" § 21-201
"Participant" § 20-101
"Person" § 20-101
"Several systems" § 20-101

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