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§ 2-603. Loan of securities

West's Annotated Code of MarylandState Finance and Procurement

West's Annotated Code of Maryland
State Finance and Procurement
Division I. State Finance [Titles 1-10a] (Refs & Annos)
Title 2. General Provisions (Refs & Annos)
Subtitle 6. Securities (Refs & Annos)
MD Code, State Finance and Procurement, § 2-603
§ 2-603. Loan of securities
Currentness
In general
(a) Subject to the limitations in this section and notwithstanding any other provision of law, the Treasurer may lend to a bank or securities broker any security that is owned by the State and is in the custody of the Treasurer.
Written contracts
(b)(1) The Treasurer and the bank or broker to whom a loan is to be made under this section shall make a written contract that governs the loan.
(2) The contract shall set forth:
(i) the term of the loan;
(ii) the consideration for the loan;
(iii) any provisions that the Treasurer determines are needed to protect the interests of the State; and
(iv) any other conditions of the loan.
Consideration
(c) Consideration for a loan under this section may not be less than the current market lending rate for the securities on loan.
Collateral
(d)(1) The bank or broker to whom a loan is to be made under this section shall deposit with the Treasurer collateral with a value that equals or exceeds the value of the securities on loan.
(2) Collateral that may be used under this section shall be:
(i) money; or
(ii) a security in which the Treasurer may invest under § 6-222 or § 6-223 of this article.
Security, indemnification for loan
(e)(1) The Treasurer may enter into a contractual agreement with a financial institution to lend, as agent, securities owned by the State and in the custody of the Treasurer.
(2) The financial institution shall provide security or indemnification acceptable to the Treasurer.

Credits

Added by Acts 1985, c. 11, § 2, eff. Oct. 1, 1985. Amended by Acts 1992, c. 455, § 1, eff. June 1, 1992.
Formerly Art. 95, § 22H.
MD Code, State Finance and Procurement, § 2-603, MD STATE FIN & PROC § 2-603
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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