Section 13-404 - Bond not required; deposit or investment of proceeds of appointing check. - Maryland Statutes

§ 13-404. Bond not required; deposit or investment of proceeds of appointing check.
 

(a)  Bond.- The trustee need not give bond. 

(b)  Deposit or investment of proceeds of appointing check.-  

(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. 
 

[An. Code 1957, art. 93A, § 402; 1974, ch. 11, § 2; 1982, ch. 285; 1990, ch. 6, § 2; 1991, ch. 604; 1993, ch. 5, § 1; 1994, ch. 675; 1995, ch. 445; 1997, ch. 664; 1998, ch. 21, § 1.]