About Statutes

This page accesses the Code of Maryland (Statutes) and the Maryland Municipal Charters and Resolutions as compiled and maintained by the Department of Legislative Services.

The Code is arranged by and organized into “Articles” (e.g. Transportation Article), which are further subdivided into “titles”, “subtitles”, “sections”, “subsections”, “paragraphs”, subparagraphs”, etc.

Note that the “official” compilation of the laws (Chapters) enacted at each session of the General Assembly is published by the State as the “Laws of Maryland”, commonly referred to as the “Session Laws”. The Session Laws for each session are compiled chronologically by chapter number and serve as the source law from which the statutes accessed here are derived.

While the “Laws of Maryland” (Session Laws) constitute the official laws of the State, this Code and the annotated versions noted below are accepted as “evidence” of the law in all State courts and by all public offices and officials (See § 10-201 of the Courts & Judicial Proceedings Article). However, in the event of a conflict between the Code and the Session Laws, the Session Laws prevail.

Note: Annotated versions of the Code, published by LexisNexis and West, are available in book and online formats. These Annotated Codes include references to case law, related citations, and explanatory notations.

The Municipal Charters are updated each year by incorporating all charter resolutions received by the Department through May 31 of that year. Individual Municipal Resolutions are published to the General Assembly website as they are received by the Department.

Statute Text

Article - State Finance and Procurement
(a)   State money on deposit with a financial institution shall be secured by:
(1)   deposit insurance; or
(2)   collateral as required by this section.
(b)    (1)   The collateral for State money on deposit with a financial institution:
(i)   must have, at all times, a market value that equals or exceeds the State money that is on deposit with the financial institution and is not covered by deposit insurance; and
(ii)   must be approved by the Treasurer.
(2)   If the collateral is a surety bond under § 6-202 of this subtitle:
(i)   the surety bond shall be in a form and amount acceptable to the Treasurer as determined by the Treasurer from time to time; and
(ii)   the financial institution that provides the surety bond as collateral shall immediately notify the Treasurer if the rating assigned to the issuing insurance company by any rating agency, found acceptable to the Treasurer under § 6-202 of this subtitle, is withdrawn or downgraded, in which event the financial institution shall immediately provide the Treasurer with substitute collateral permitted under § 6-202 of this subtitle.
(3)   Subject to the requirements of this subsection, a financial institution may change its collateral from time to time.
(c)    (1)   A custodian shall hold the collateral under this section for the benefit of the State.
(2)   A financial institution may use as a custodian:
(i)   any banking institution that is approved by the Commissioner of Financial Regulation to conduct commercial banking business in the State;
(ii)   a federal reserve bank; or
(iii)   any national banking association that is approved by the Comptroller of the Currency to conduct banking business in the State.
(3)   A financial institution may not be approved as custodian for the collateral of a depositary unless the assets of the financial institution equal or exceed 200% of the value of the collateral to be held for the depositary.