H.B. 108                                                 VETOES

(c)     (1) The governing authority of any local government having funds which are
available for investment and which are not required by law or by any covenant or
agreement with bondholders or others to be segregated and invested in a different
manner may direct its financial officer to remit funds to the Treasurer for investment as
part of the local government investment pool.

(2)     Upon determination by the local governing authority that it is in the best
interest of the local government to deposit funds in the investment pool, it shall adopt and
file with the Treasurer a certified copy of a resolution or ordinance authorizing
investment of its funds in the investment pool. The resolution or ordinance shall name the
local government official or officials responsible for deposit and withdrawal of such funds.

(3)     The resolution or ordinance filed with the Treasurer shall be
accompanied by a statement as to the approximate cash flow requirements of the local
government for the invested funds. Subsequent deposits into the investment pool shall be
accompanied by a statement as to the intended duration of the investment or the
anticipated date of withdrawal of the funds from the pool.

(d)     A separate account designated by name or number for each participant in the
fund, INCLUDING THE STATE, shall be kept to record individual transactions and totals
of all investments belonging to each participant. A monthly report showing the changes in
investments made during the preceding month shall be furnished to each participant in
the investment pool. Details of any investment transaction shall be furnished to any
participant upon request.

(e)     The principal and credited income of each account maintained for a
participant in the investment pool shall be subject to payment from the pool upon
request, provided that the request for payment is made in accordance with the terms of
the deposit. Accumulated income shall be credited to each participant account at least
monthly.

(f)      Except as provided in this section, all instruments of title of all investments of
the investment pool shall remain in the custody of the Treasurer. The Treasurer may
deposit with one or more fiscal agents or banks those instruments of title he considers
advisable, to be held in safekeeping by the agents or banks for collection of the principal
and interest or other income, or of the proceeds of sale. The Treasurer shall collect the
principal and interest or other income from investments of the investment pool, the
instruments of title to which are in his custody, when due and payable.

(g)     A payment may not be issued upon any account in an amount greater than the
sum total of the particular account to which it applies. If such payment is issued, it shall
be refunded by the distributee.

(h) (1) Subject to the objectives and requirements of this section, the Treasurer
shall formulate procedures for the investment and reinvestment of funds in the
investment pool and the acquisition, retention, management, and disposition of
investments of the investment pool.

(2) (i) The Treasurer may enter into a contractual agreement with a
qualified Maryland fiscal agent and may compensate the agent for services rendered.

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