Skip to main content
Find a Lawyer

Maryland Code, Estates and Trusts § 13-404

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) The trustee need not give bond.

(b)(1) A trustee who receives a check under § 13-403 of this subtitle shall:

(i) Subject to paragraph (3) of this subsection, deposit the check in any financial institution as defined in § 13-301 of this title; or

(ii) Invest or reinvest the proceeds of the check, directly or by securities or other interests of a broker or dealer, in:

1. General obligations of or obligations guaranteed by the United States or this State;

2. Other obligations of the United States or this State or of its political subdivisions, agencies, authorities, or municipal corporations that are rated in one of the two highest rating categories by a nationally recognized credit rating agency; or

3. Any open end management investment company or investment trust that is registered under the federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., and that:

A. Meets the criteria of a money market fund that are specified in the federal Investment Company Act and the regulations adopted under that law; or

B. In a prospectus filed with the Securities and Exchange Commission of the federal government, states as a principal investment objective long-term growth or capital appreciation through investments in equity securities.

(2) If the trustee deposits the check in a financial institution under paragraph (1)(i) of this subsection, the trustee may direct the financial institution to invest or reinvest the proceeds of the check in a certificate of deposit or other interest bearing account.

(3) Deposits in a financial institution under paragraph (1)(i) of this subsection may not exceed the amount of insurance provided for such deposits.

(4) Investments in money market funds under paragraph (1)(ii)3A of this subsection, investments in stock mutual funds under paragraph (1)(ii)3B of this subsection, and investments in any combination of both money market funds and stock mutual funds may not exceed 30% of the trust assets at the time of investment.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Maryland Code, Estates and Trusts § 13-404 - last updated January 01, 2025 | https://codes.findlaw.com/md/estates-and-trusts/md-code-est-and-trst-sect-13-404/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard