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PARRIS N. GLENDENING, Governor
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Ch. 494
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(b) The plan shall specify the investment policies used by the Board in the
administration of the Program.
(c) Assets of the Program shall be invested in accordance with the
comprehensive investment plan.
(d) The comprehensive investment plan must indicate the percentage of assets
that shall be held in each class of investment, the amount of funds held in any cash
pool, the amount of funds held in fixed assets investments, the amount of funds held
in equity investments, and the percentage and dollar value of assets placed with
outside managers.
(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.
(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 ] PREPAID contracts and the
average in-state tuition costs at public institutions of higher education in the State at
the time that the benefits are exercised.
(g) The COMPREHENSIVE INVESTMENT 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.
(h) The Board shall review the comprehensive investment plan at least
annually to assure that the Program remains actuarially sound.
[(i) After each annual review of the comprehensive investment plan for
actuarial soundness, the Board may adjust the terms of subsequent higher education
investment contracts to ensure continued actuarial soundness or, if necessary, may
adjust the terms of current higher education investment contracts.]
[())] (I) 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.
[(k)] (J) 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.
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- 2633 -
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