Maryland § 6-209
Full text of Maryland Maryland Code § 6-209, with citation guidance and answers to common questions.
§ 6-209.
(a) State money on deposit with a financial institution shall be secured by:
(1) deposit insurance; or
(2) collateral as required by this section.
(b) (1) The collateral for State money on deposit with a financial institution:
(i) must have, at all times, a market value that equals or exceeds the State money that is on deposit with the financial institution and is not covered by deposit insurance; and
(ii) must be approved by the Treasurer.
(2) If the collateral is a surety bond under § 6-202 of this subtitle:
(i) the surety bond shall be in a form and amount acceptable to the Treasurer as determined by the Treasurer from time to time; and
(ii) the financial institution that provides the surety bond as collateral shall immediately notify the Treasurer if the rating assigned to the issuing insurance company by any rating agency, found acceptable to the Treasurer under § 6-202 of this subtitle, is withdrawn or downgraded, in which event the financial institution shall immediately provide the Treasurer with substitute collateral permitted under § 6-202 of this subtitle.
(3) Subject to the requirements of this subsection, a financial institution may change its collateral from time to time.
(c) (1) A custodian shall hold the collateral under this section for the benefit of the State.
(2) A financial institution may use as a custodian:
(i) any banking institution that is approved by the Commissioner of Financial Regulation to conduct commercial banking business in the State;
(ii) a federal reserve bank; or
(iii) any national banking association that is approved by the Comptroller of the Currency to conduct banking business in the State.
(3) A financial institution may not be approved as custodian for the collateral of a depositary unless the assets of the financial institution equal or exceed 200% of the value of the collateral to be held for the depositary.
Frequently Asked Questions About Maryland § 6-209
What does Maryland Code § 6-209 cover?
Section 6-209 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 § 6-209?
A common citation format is "Maryland Code § 6-209" (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 § 6-209 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.