PARRIS N. GLENDENING, Governor

S.B. 52

(1)      THE INVENTORY OF INVESTMENTS WITH MATURITY DATES AND
THE BOOK AND MARKET VALUE AS OF JUNE 30;

(2)      THE NET INCOME EARNED;

(3)      THE PERCENTAGE SHARE OF EACH CATEGORY OF INVESTMENT IN
THE PORTFOLIO; AND

(4)      ANY SALE OF INVESTMENTS PRIOR TO THE MATURITY DATE.
[(2) The report shall include a detailed review of:

(i) the amount and duration of each investment;

(ii) the net interest or net income earned on the investment; and

(iii) any management fee or other fees or expenses paid directly by the
Treasurer in connection with the investment.]

(D) AN INVESTMENT MADE PURSUANT TO THIS SECTION SHALL BE MADE:

(1)      WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE UNDER THE
CIRCUMSTANCES THEN PREVAILING THAT A PRUDENT PERSON ACTING IN A LIKE
CAPACITY AND FAMILIAR WITH SUCH MATTERS WOULD USE IN THE CONDUCT OF
AN ENTERPRISE OF A LIKE CHARACTER AND WITH LIKE AIMS;

(2)      IN A MANNER DESIGNED TO REASONABLY MATCH THE
ANTICIPATED CASH FLOW OF THE STATE SO THAT SUFFICIENT FUNDS ARE
AVAILABLE TO PAY OBLIGATIONS UPON PROPER PRESENTATION FOR PAYMENT;

(3)      SO THAT A REASONABLE AMOUNT OF CASH OR CASH EQUIVALENTS
IS AVAILABLE FOR UNANTICIPATED CASH NEEDS;

(4)      WITH DUE REGARD FOR MINIMIZING RISK WHILE MAXIMIZING
RETURN;

(5)      USING COMPETITIVE PURCHASING PRACTICES EXCEPT WHEN
IMPRACTICAL;

(6)      IN ACCORDANCE WITH A WRITTEN INVESTMENT POLICY;

(7)      SO THAT THE SECURITIES AND COLLATERAL MAY CONTINUE TO BE
PRICED ON A MARK TO MARKET BASIS; AND

(8)      TO AVOID THE ENHANCEMENT OF THE PERSONAL FINANCIAL
POSITION OF THE TREASURER OR ANY EMPLOYEE OF THE TREASURER WHO HAS
RESPONSIBILITIES FOR SUCH INVESTMENTS.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1995.

May 24, 1995

The Honorable Thomas V. Mike Miller, Jr.

- 3657 -