Ch. 456

1997 LAWS OF MARYLAND

CHAPTER 456
(House Bill 581)

AN ACT concerning

State Treasurer - Investment of Public Funds - Money Market Mutual Funds

FOR the purpose of modifying a provision pertaining to the authority of the State
Treasurer to invest or reinvest certain money in qualifying money market mutual
funds by eliminating a statutory requirement that an eligible money market mutual
fund must have received a specified rating.

BY repealing and reenacting, with amendments,
Article - State Finance and Procurement
Section 6-222(a)
Annotated Code of Maryland
(1995 Replacement Volume and 1996 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - State Finance and Procurement

6-222.

(a) The Treasurer may invest or reinvest unexpended or surplus money over
which the Treasurer has custody in:

(1) an obligation for which the United States has pledged its faith and credit
for the payment of the principal and interest;

(2) an obligation that a federal agency or a federal instrumentality has
issued in accordance with an act of Congress;

(3) a repurchase agreement collateralized in an amount not less than 102%
of the principal amount by an obligation of the United States, its agencies or
instrumentalities, provided the collateral is held by a custodian other than the seller
designated by the buyer;

(4) bankers' acceptances guaranteed by a financial institution with a
short-term debt rating in the highest letter and numerical rating by at least one nationally
recognized statistical rating organization as designated by either the United States
Securities and Exchange Commission or the Treasurer;

(5) with respect to amounts treated by the Internal Revenue Service as bond
sale proceeds only, bonds, notes, or other obligations of investment grade in the highest
quality letter and numerical rating by at least one nationally recognized statistical rating
organization as designated by the United States Securities and Exchange Commission
issued by or on behalf of this or any other state or any agency, department, county,

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