§ 6-202. Collateral

   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.

HISTORY: An. Code 1957, art. 95, § 21A, 23; 1985, ch. 11, § 2; ch. 718; 1988, ch. 612; 1994, ch. 569; 1998, ch. 501; 2012, chs. 270, 271.