PARRIS N. GLENDENING, Governor                             Ch. 326

Article - Transportation

13-623.

(a) In this section, "financial institution" means:

(1)     Any bank that is authorized to do business in this State; and

(2)     Any other financial institution that is licensed to do business in this
State by the [Bank] Commissioner OF FINANCIAL REGULATION [or the
Commissioner of Consumer Credit].

Article 88B - Department of State Police

35.

The administration of the retirement and pension system, established by this
subtitle, is hereby vested in the Secretary, who shall keep separate records and accounts
and report his receipts and disbursements hereunder in the same manner as is provided in
this article for other receipts and disbursements of his Department. The Secretary shall
receive no additional compensation for these duties, but shall be reimbursed for all
necessary expenses which he may sustain through his service in administering this subtitle;
and all claims for reimbursement shall be subject to the approval of the Legislative
Auditor. And there shall be no additional paid employees engaged for the administration
of this subtitle. The Secretary shall have the power and authority to make all reasonable
rules and regulations for the administration of the retirement and pension system; and
shall have the power and authority to hold and invest all funds accruing to the pension
fund for the benefit of the said fund; provided, however, that no investment or
reinvestment of said fund shall be made without the advice and approval of a board
consisting of the [State Bank Commissioner] COMMISSIONER OF FINANCIAL
REGULATION and two persons to be appointed by the Secretary who shall be officers
of a bank or trust company located and doing business in Maryland. The chief actuary of
the State Insurance Commissioner's office shall be the technical adviser of the Secretary,
in the administration of this fund, on all actuarial questions. The Secretary shall be
authorized to set aside annually an amount sufficient to defray the annual cost of the
pension together with at least $1,000 toward the necessary reserve, plus interest at the
rate of 4% per annum upon that portion of the pension fund reserve remaining unpaid.
This reserve shall be that amount necessary to cover the accrued liability existing at the
time of the establishment of the pension fund, by reason of the service rendered by the
present members of the Department, prior to such date of establishment. This pension
fund reserve shall be that amount shown to be necessary for the proper operation of the
system, by accepted actuarial standards. The Secretary shall also retain biennially all
unexpended funds in the budget item of the Department, designated therein
compensation insurance and pension fund, for the purpose of establishing the above
mentioned reserve, until such reserve is complete. Every person who knowingly and
wilfully in anywise procures the making or presentation of any false or fraudulent affidavit
or affirmation concerning any claim for a share of payment thereof shall in every case
forfeit a sum not exceeding $200 to be sued for and recovered by and in the name of the
Secretary; and when recovered to be paid over to, and thereupon becoming a part of the

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