Section 11-506 - Maintenance and Replacement Fund. - Maryland Statutes

§ 11-506. Maintenance and Replacement Fund.
 

(a)  In general.- The Board of Supervisors of the Association shall maintain a Maintenance and Replacement Fund for the replacement and repair of the major equipment of the Association. 

(b)  Rate set by Board.- The State Board of Pilots shall determine a percentage of the pilotage fees collected by the Association to be set aside in the Fund. 

(c)  Approval of expenditures.- The Board of Supervisors of the Association shall obtain written approval from the State Board of Pilots for any expenditures from the Fund. 

(d)  Maximum balance.-  

(1) Except as provided in paragraph (2) of this subsection, the balance in the Fund shall remain at or above $500,000. 

(2) (i) The balance of the Fund may fall below $500,000 for expenditures authorized by the Board. 

(ii) The balance of the Fund may not remain below $500,000 for more than 10 consecutive years. 

(iii) At no time shall the balance of the Fund fall below $100,000. 

(e)  Payment into fund.- The Board of Supervisors of the Association shall deposit the moneys authorized under subsection (b) of this section into the Maintenance and Replacement Fund. 

(f)  Fund held in trust, management.-  

(1) The Board of Supervisors of the Association shall hold the Maintenance and Replacement Fund in trust. 

(2) The Association: 

(i) may invest or hold the Fund in any manner that the Association finds desirable, in light of the nature and purpose of the Fund; 

(ii) may place control and management of the Fund, or a part of the Fund, with a bank or trust company that is subject to State or federal regulation; and 

(iii) is not limited to investments in property that has been designated, under any law of the State, as strictly suitable for investment of a trust fund. 

(g)  Fund not subject to attachment or execution.- Assets held in trust under this section are not subject to attachment or execution. 
 

[An. Code 1957, art. 74, § 10; 1989, ch. 3, § 1; 2002, ch. 523, §§ 2, 3.]