H.B. 108                                                 VETOES

(a)     Except as provided in subsection (c) of this section, AND SUBJECT TO § 22F OF
THIS ARTICLE, and notwithstanding any provision of a local law or ordinance, the county
commissioners of each county of the State, and the chief fiscal or administrative officer or
officers or governing body of each municipality, town, body politic, public body corporate,
school, road, drainage, improvement, construction or soil conservation district or
commission in the State, including, by way of enumeration and not in limitation, the
Upper Potomac River Commission, and county school boards and other political
subdivisions and bodies politic of the State and any agency of any political subdivision of
the State are hereby severally directed, authorized and empowered to invest, redeem, sell,
exchange and reinvest all unexpended or surplus moneys in any fund or account of which
they have custody or control in obligations or repurchase agreements [of the type in
which the Treasurer may reinvest under] IN ACCORDANCE WITH § 6-222 of the State
Finance and Procurement Article, or to deposit said moneys in any bank or banks in the
State of Maryland or in any savings and loan association or savings and loan associations
or in any building and loan association or building and loan associations in
interest-bearing time deposit and/or savings accounts, or in the local government
investment pool created in this article. In Prince George's County the chief fiscal officer
is hereby authorized and empowered to invest, redeem, sell, exchange, and reinvest
unexpended or surplus moneys in any fund or account of which he has custody or control,
in addition to all those items previously listed herein, and with the approval of the county
council, in any enterprise fund operated by and for the benefit of Prince George's County
and its residents. Such deposits in banks or in savings and loan associations or building
and loan associations shall only be made if the bank or savings and loan associations or
building and loan associations has deposited a like amount of bonds in escrow, as now
prescribed by law, covering bank deposits, savings and loan deposits, building and loan
deposits, or if the bank, savings and loan association or building and loan association has
given as security for these deposits any of the types of collateral set forth in § 6-202 of the
State Finance and Procurement Article. The interest or income from any such investment
or deposit shall be and become a part of the fund from which the investment or deposit
was made and may itself be so invested or deposited, provided, however, that where the
fund so invested, or deposited constitutes the proceeds of the issue of bonds or other
obligations, the principal of and/or interest on which the issuer is obligated to repay to the
holders thereof, the interest or income from such investments may be used to pay the
principal and/or interest on the same by the issuer. Investments or deposits made
pursuant to this section may be withdrawn or altered from time to time by the investing or
depositing officer or governing body either to meet the requirements for which such funds
are held or for reinvestment pursuant to the terms hereof.

(b)     All such investments made prior to March 2, 1943, are hereby legalized,
validated, ratified and confirmed, notwithstanding the absence of statutory authority
therefor or any inconsistent provision of law.

(c)     The trustees or other officers in charge of any pension or retirement system or
fund of any political subdivision of the State or any agency or department of the political
subdivision may invest, redeem, sell, exchange, and reinvest moneys under their custody
or control as provided by law by the governing body of the political sub division political
subdivision and shall comply with fiduciary standards that at least meet the standards set
forth in Title 21, Subtitle 2 of the State Personnel and Pensions Article in connection with
funds under their custody or control.

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