PARRIS N. GLENDENING, Governor

S.B. 49

decisions; and generally relating to the authority of the State Treasurer regarding
the investment of certain public funds under certain circumstances.

BY repealing and reenacting, with amendments,
Article - State Finance and Procurement
Section 6-222

Annotated Code of Maryland
(1995 Replacement Volume)

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

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 AS
APPROVED BY 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 OR AS
APPROVED BY THE TREASURER 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]

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