ROBERT L. EHRLICH, JR., Governor

Ch. 381

(2)     For the exclusive purposes of providing benefits to the participants
and providing reasonable expenses of administering the [Program] TRUST;

(3)     With the care, skill, prudence, and diligence under the circumstances
then prevailing, that a prudent person acting in a like capacity and familiar with such
matters would use in the conduct of an enterprise of a like character with like aims;

(4)' By diversifying the investments of the [Program] TRUST so as to
minimize the risk of large losses, unless under the circumstances it is clearly prudent
not to do so;

(5)     In accordance with the laws governing the [Program] TRUST; and

(6)     In accordance with the documents and instruments governing the
[Program] TRUST to the extent that the documents and instruments are consistent
with this subtitle.

(c) In exercising authority, control, or discretion with respect to the
[Program] TRUST, a fiduciary may not:

(1)     Use the assets of the [Program] TRUST for the fiduciary's own
interest or account;

(2)     Act in a transaction involving the [Program] TRUST on behalf of a
person, or represent a person, if the interests of the person are adverse to the
interests of the [Program] TRUST or the interests of participants;

(3)     Receive any consideration for the fiduciary's own account from a
person dealing with the [Program] TRUST in connection with a transaction involving
the assets of the [Program] TRUST; or

(4)     Become an endorser or surety or, in any manner, an obligor, for
money lent to or borrowed from the Board.

18-1908.

(a)     The Board shall purchase a bond for each fiduciary in accordance with
Title 9, Subtitle 17 of the State Government Article.

(b)     Unless a fiduciary is bonded, the fiduciary may not exercise custody or
control of any assets of the [Program] TRUST.

(c)     A fiduciary may not allow another fiduciary to act in violation of this
section.

18-1909.

(a) The Board shall establish [a program of] prepaid contracts UNDER THE
TRUST to provide for the advance payment of tuition and mandatory fees at:

(1)     A community college;

(2)     A 4-year college;

(3)     A university; or

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