Ch. 304

1995 LAWS OF MARYLAND

Article - State Finance and Procurement

6-222.

(a) The Treasurer may invest or reinvest unexpended or surplus money over
which the Treasurer has custody IN:

(1)  [in any] AN obligation for which the United States has pledged its faith
and credit for the payment of the principal and interest;

(2)      [in any] AN obligation that a federal agency [issues] OR A FEDERAL
INSTRUMENTALITY HAS ISSUED in accordance with an act of Congress;

(3)     [in a repurchase agreement that any of these obligations secures] A
REPURCHASE AGREEMENT COLLATERALIZED IN AN AMOUNT NOT LESS THAN 102%
OF THE PRINCIPAL AMOUNT BY AN OBLIGATION OF THE UNITED STATES, ITS
AGENCIES OR INSTRUMENTALITIES, PROVIDED THE COLLATERAL IS HELD BY A
CUSTODIAN OTHER THAN THE SELLER DESIGNATED BY THE BUYER;

(4)     [in] A banker's BANKERS' acceptances guaranteed by A banking
FINANCIAL [institutions which are rated above average in a uniform investment grading
system by a recognized rating service] INSTITUTION WITH A SHORT-TERM DEBT
RATING IN THE HIGHEST LETTER AND NUMERICAL RATING BY AT LEAST ONE
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION AS DESIGNATED
BY EITHER THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE
TREASURER;

(5)     with respect to AMOUNTS TREATED BY THE INTERNAL REVENUE
SERVICE AS bond sale proceeds only, [in] bonds, notes, or other obligations of
investment grade [quality (as established by a nationally recognized rating agency)] IN
THE HIGHEST QUALITY. LETTER' AND NUMERICAL RATING BY AT LEAST ONE
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION AS DESIGNATED
BY THE UNITED STATES SECURITIES AND" EXCHANGE COMMISSION issued by or on
behalf of this or any other state or any agency, department, county, municipal or public
corporation, special district, authority, or political subdivision thereof, or in any fund or
trust that invests only in securities of the type described in this paragraph; [or]

(6)     [in securities of, or other interests 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] COMMERCIAL PAPER THAT HAS RECEIVED THE HIGHEST
LETTER AND NUMERICAL RATING BY AT LEAST ONE NATIONALLY RECOGNIZED

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