Maryland § 2-603
Full text of Maryland Maryland Code § 2-603, with citation guidance and answers to common questions.
§ 2-603.
(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.
(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.
(2) The contract shall set forth:
(i) the term of the loan;
(ii) the consideration for the loan;
(iii) any provisions that the Treasurer determines are needed to protect the interests of the State; and
(iv) any other conditions of the loan.
(c) Consideration for a loan under this section may not be less than the current market lending rate for the securities on loan.
(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.
(2) Collateral that may be used under this section shall be:
(i) money; or
(ii) a security in which the Treasurer may invest under § 6-222 or § 6-223 of this article.
(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.
(2) The financial institution shall provide security or indemnification acceptable to the Treasurer.
Frequently Asked Questions About Maryland § 2-603
What does Maryland Code § 2-603 cover?
Section 2-603 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 § 2-603?
A common citation format is "Maryland Code § 2-603" (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 § 2-603 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.