§ 10-1-103. SAME - DEPOSITORIES.

(a)

Definitions.

(1)

In this section, the following words have the meanings indicated.

(2)

"Custodian" means a federal reserve bank, bank and trust company, a trust company, or a state or national bank.

(3)

"Depository" means a bank or trust company selected as a depository for county moneys.

(b)

County discretion.

(1)

Notwithstanding any provisions, laws, rules, regulations to the contrary included elsewhere in or adopted in accordance with this Code, the county may use any bank depositories and accounts as it considers appropriate and consistent with prudent management concepts for the pooling of cash of various funds to obtain maximum financial benefit.

(2)

If the county pools monies from different funds, the county's books, accounts, and records shall be organized to allow the county to:

(i)

Determine the origin of monies; and

(ii)

Trace the monies to the appropriate funds.

(c)

Collateralization of funds in a depository. County funds on deposit with a financial institution shall be secured in accordance with all applicable provisions of the State Finance and Procurement Article of the Annotated Code of Maryland.

(d)

Same - Equal to deposits. The market value of collateral given by a depository as security for deposits of county money shall be in accordance with applicable provisions of the State Finance and Procurement Article of the Annotated Code of Maryland.

(e)

Custodian.

(1)

A depository pledging collateral for public deposits shall deliver the collateral to a custodian for the benefit of the county.

(2)

Without advance written approval from the Director of Budget and Finance or the Director's designee, the depository may not make changes to or substitutions or exchanges for the collateral delivered to the custodian.

(3)

The depository shall at all times maintain the total amount of assets pledged at least in the amount required for all public deposits secured.

(f)

Required reports.

(1)

At the request of the Director of Budget and Finance or the Director's designee:

(i)

A depository shall prepare and issue a report of the total amount of the money of the county on deposit and the total amount and market value of collateral pledged to secure the county money; and

(ii)

A custodian shall prepare and issue a report of the total amount and market value of the collateral held on behalf of the depository to secure county money.

(2)

A depository shall prepare and issue reports requested by:

(i)

The comptroller of the currency, if the depository is a national bank; or

(ii)

The state bank commissioner, if the depository is a state banking institution.

(1988 Code, § 15-4) (Bill No. 87, 1990, §§ 2, 3, 8-13-1990; Bill No. 49-96, § 7, 7-1-1996; Bill No. 83-00, § 2, 7-1-2004)