{"data":{"id":"us-md/md.-code-state-finance-and-procurement-2-603","jurisdiction":"us-md","citation":"Md. Code, State Finance and Procurement § 2–603","heading":"","body":"(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.\n(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.\n(2) The contract shall set forth:\n(i) the term of the loan;\n(ii) the consideration for the loan;\n(iii) any provisions that the Treasurer determines are needed to protect the interests of the State; and\n(iv) any other conditions of the loan.\n(c) Consideration for a loan under this section may not be less than the current market lending rate for the securities on loan.\n(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.\n(2) Collateral that may be used under this section shall be:\n(i) money; or\n(ii) a security in which the Treasurer may invest under § 6-222 or § 6-223 of this article.\n(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.\n(2) The financial institution shall provide security or indemnification acceptable to the Treasurer.","path":["Article - State Finance and Procurement"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gsf\u0026section=2-603","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T20:00:48Z","sha256":"4b59548f438550dfbfc369456bfea05e272160f2333e19ca50d51ab7dd468ad9","source_id":"us-md","stale":false,"prev":"us-md/md.-code-state-finance-and-procurement-2-602.1","next":"us-md/md.-code-state-finance-and-procurement-2-604"},"notice":"GroundRules: Original legal text. Not legal advice."}