PARTUS N. GLENDENING, Governor

S.B. 288

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,
municipal or public corporation, special district, authority, or political subdivision
thereof, or in any fund or trust that invests only in securities of the type described in this
paragraph;

(6)     commercial paper that has received the highest letter and numerical
rating by at least one nationally recognized statistical rating organization as designated by
the United States Securities and Exchange Commission, provided that such commercial
paper may not exceed 5% of the total investments made by the Treasurer under this
subsection;

(7)     money market mutual funds registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, 15 U.S.C. § 80(a), as amended,
and operated in accordance with Rule 2A-7 of the Investment Company Act of 1940, 17
C.F.R. § 270.2A-7, as amended[, and that have received the highest possible rating from
at least one nationally recognized statistical rating organization as designated by the
United States Securities and Exchange Commission]; and

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