Maryland § 13-404
Full text of Maryland Maryland Code § 13-404, with citation guidance and answers to common questions.
§ 13-404.
(a) The trustee need not give bond.
(b) (1) A trustee who receives a check under § 13-403 of this subtitle shall:
(i) Subject to paragraph (3) of this subsection, deposit the check in any financial institution as defined in § 13-301 of this title; or
(ii) Invest or reinvest the proceeds of the check, directly or by securities or other interests of a broker or dealer, in:
1. General obligations of or obligations guaranteed by the United States or this State;
2. Other obligations of the United States or this State or of its political subdivisions, agencies, authorities, or municipal corporations that are rated in one of the two highest rating categories by a nationally recognized credit rating agency; or
3. Any open end management investment company or investment trust that is registered under the federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., and that:
A. Meets the criteria of a money market fund that are specified in the federal Investment Company Act and the regulations adopted under that law; or
B. In a prospectus filed with the Securities and Exchange Commission of the federal government, states as a principal investment objective long-term growth or capital appreciation through investments in equity securities.
(2) If the trustee deposits the check in a financial institution under paragraph (1)(i) of this subsection, the trustee may direct the financial institution to invest or reinvest the proceeds of the check in a certificate of deposit or other interest bearing account.
(3) Deposits in a financial institution under paragraph (1)(i) of this subsection may not exceed the amount of insurance provided for such deposits.
(4) Investments in money market funds under paragraph (1)(ii)3A of this subsection, investments in stock mutual funds under paragraph (1)(ii)3B of this subsection, and investments in any combination of both money market funds and stock mutual funds may not exceed 30% of the trust assets at the time of investment.
Frequently Asked Questions About Maryland § 13-404
What does Maryland Code § 13-404 cover?
Section 13-404 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maryland § 13-404?
A common citation format is "Maryland Code § 13-404" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maryland law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.
How does Maryland § 13-404 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.