Ch. 111

1997 LAWS OF MARYLAND

(D) (E) (1) NOTWITHSTANDING ANY LAW RESTRICTING THE DEPOSIT OR
INVESTMENT OF STATE MONEY, THE BOARD MAY PLACE ASSETS OF THE PROGRAM
IN SAVINGS ACCOUNTS OR MAY USE THE ASSETS TO PURCHASE FIXED OR VARIABLE
LIFE INSURANCE OR ANNUITY CONTRACTS, SECURITIES, EVIDENCE OF
INDEBTEDNESS, OR OTHER INVESTMENT PRODUCTS PURSUANT TO THE
COMPREHENSIVE INVESTMENT PLAN.

(2) ANY INSURANCE, ANNUITY CONTRACTS, SAVINGS, OR OTHER
INVESTMENT PRODUCTS PROCURED BY THE BOARD SHALL BE UNDERWRITTEN
AND OFFERED IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE LAWS.

(E) (F) THE BOARD SHALL MAKE EVERY EFFORT TO INVEST THE ASSETS OF
THE PROGRAM IN A MANNER THAT EARNS, AT A MINIMUM, SUFFICIENT EARNINGS
TO GENERATE THE DIFFERENCE BETWEEN THE PREPAID AMOUNT UNDER
ADVANCE PAYMENT CONTRACTS AND ACTUAL COSTS AT THE TIME OF
ENROLLMENT. THE AVERAGE IN-STATE TUITION COSTS AT PUBLIC INSTITUTIONS
OF HIGHER EDUCATION IN THE STATE AT THE TIME THAT THE BENEFITS ARE
EXERCISED.

(F) (G) THE PLAN SHALL PROVIDE FOR THE PROGRAM TO BE
ADMINISTERED IN AN ACTUARIALLY SOUND MANNER TO ASSURE THAT THE BOARD
MAY DEFRAY OBLIGATIONS OF THE PROGRAM

(G) (H) THE BOARD SHALL REVIEW THE COMPREHENSIVE INVESTMENT
PLAN AT LEAST ANNUALLY TO ASSURE THAT THE PROGRAM REMAINS
ACTUARIALLY SOUND.

(H) (I) AFTER EACH ANNUAL REVIEW OF THE COMPREHENSIVE
INVESTMENT PLAN FOR ACTUARIAL SOUNDNESS, THE BOARD MAY ADJUST THE
TERMS OF SUBSEQUENT PREPAID TUITION HIGHER EDUCATION INVESTMENT
CONTRACTS TO ENSURE CONTINUED ACTUARIAL SOUNDNESS OR, IF NECESSARY,
MAY ADJUST THE TERMS OF CURRENT PREPAID TUITION HIGHER EDUCATION
INVESTMENT CONTRACTS.

(I) (J) THE BOARD MAY CONTRACT WITH AN INVESTMENT ADVISORY OR
MANAGEMENT COMPANY FOR THE INVESTMENT AND MANAGEMENT OF THE
PROGRAM AS LONG AS THE PROGRAM IS ADMINISTERED IN ACCORDANCE WITH
THE COMPREHENSIVE INVESTMENT PLAN.

(J) (K) THE BOARD:

(1) SHALL PRESERVE, INVEST, AND EXPEND THE ASSETS OF THE
PROGRAM SOLELY FOR THE PURPOSES OF THIS SUBTITLE; AND

(2) MAY NOT LOAN, TRANSFER, OR USE THE ASSETS FOR ANY OTHER
PURPOSE OF THE STATE

(K)  (L) THE PROGRAM IS NOT SUBJECT TO § 7-302 OF THE STATE FINANCE

AND PROCUREMENT ARTICLE.

(L) (M) UNLESS THE BOARD PROVIDES OTHERWISE BY REGULATION, THE
BOARD SHALL USE THE PROCEEDS IN THE PROGRAM IN THE FOLLOWING ORDER:

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