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Maryland Code, State Finance and Procurement § 6-202

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

Collateral that may be used under this subtitle shall be:

(1) an obligation of the United States or any of its agencies;

(2) an obligation guaranteed by the United States or by any of its agencies;

(3) an obligation insured by the United States;

(4) an obligation of the State or any of its units or instrumentalities;

(5) an obligation of a county of the State or any of its agencies;

(6) an obligation of a municipal corporation in the State or any of its agencies;

(7) an obligation of any other governmental authority in the State;

(8) an obligation of the Inter-America Development Bank;

(9) an obligation of the World Bank;

(10) an obligation of the following government-sponsored enterprises:

(i) the Federal Home Loan Banks;

(ii) the Federal Home Loan Mortgage Corporation;

(iii) the Federal National Mortgage Association;

(iv) the Farm Credit System;

(v) the Federal Agricultural Mortgage Corporation; and

(vi) the Student Loan Marketing Association;

(11) a surety bond if:

(i) subject to the terms and conditions of the bond, it is irrevocable and absolute;

(ii) the surety bond is issued by an insurance company authorized to do business in this State;

(iii) the issuer of the surety bonds does not provide surety bonds for any one financial institution in an amount that exceeds 10% of the surety bond insurer's policyholders' surplus and contingency reserve, net of reinsurance; and

(iv) the claims-paying ability of the authorized insurance company is rated, at all relevant times, in the highest category by at least two nationally recognized rating agencies acceptable to the Treasurer;

(12) an obligation or security of, or other interest in, any open-end or closed-end management type investment company or investment trust registered under the provisions of the federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., if:

(i) the portfolio of the open-end or closed-end management type investment company or investment trust is limited to direct obligations of the United States government and to repurchase agreements fully collateralized by United States government obligations; and

(ii) the open-end or closed-end management type investment company or investment trust takes delivery of that collateral, either directly or through an authorized custodian; or

(13) a letter of credit issued by a Federal Home Loan Bank if the letter of credit meets the conditions under the guidelines issued by the State Treasurer's office.

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Cite this article: FindLaw.com - Maryland Code, State Finance and Procurement § 6-202 - last updated January 01, 2025 | https://codes.findlaw.com/md/state-finance-and-procurement/md-code-state-fin-and-proc-sect-6-202/

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