Local Government (GLG) — Title 17. Investment by Local Government
Statutes in effect as of October 1, 2026.
Subtitle 1. In General
Md. Code Ann., Local Gov't § 17-101 (2026)
Title 17. Investment by Local Government
Subtitle 1. In General
§ 17–101LinkCopy Citation
(a)
In this section, “State financial institution” means an institution that:
(1)
has a branch in the State that takes deposits; and
(2)
is:
(i)
a bank incorporated under the laws of any state or the United States;
(ii)
a trust company or savings bank incorporated under the laws of the State; or
(iii)
a savings and loan association incorporated under the laws of the State or the United States.
(b)
This section applies to the following governmental entities:
(1)
the governing body of each county;
(2)
the governing body of each municipality;
(3)
each county board of education, including the Baltimore City Board of School Commissioners;
(4)
each road, drainage, improvement, construction, or soil conservation district or commission;
(5)
the Upper Potomac River Commission; and
(6)
any other political subdivision or body politic and corporate of the State.
(c)
Subject to Subtitle 2 of this title and notwithstanding any provision of local law or ordinance, a governmental entity or its authorized agent:
(1)
in accordance with § 6–222 of the State Finance and Procurement Article may:
(i)
invest and reinvest in obligations or repurchase agreements all unexpended money in any fund or account of which the governmental entity or its authorized agent has custody or control; and
(ii)
sell, redeem, or exchange an investment or reinvestment made under this item; or
(2)
may deposit unexpended money in:
(i)
an interest–bearing time deposit account or savings account at a federally insured bank or federally insured savings and loan association in the State; or
(ii)
the Local Government Investment Pool established under § 17–302 of this title.
(d)
Except as provided in subsections (e) and (f) of this section, a governmental entity or its authorized agent may deposit unexpended money in a federally insured bank or federally insured savings and loan association under subsection (b)(2)(i) of this section only if the bank or savings and loan association gives as security for the deposit collateral of a type specified in § 6–202 of the State Finance and Procurement Article.
(e)
A governmental entity or its authorized agent may deposit unexpended money in a federally insured bank or federally insured savings and loan association without the security required under subsection (d) of this section if:
(1)
the money is initially deposited in a State financial institution chosen by the depositor;
(2)
the State financial institution arranges for the further deposit of the money into one or more certificates of deposit in an amount not exceeding the applicable Federal Deposit Insurance Corporation maximum insurance coverage limit, issued by one or more federally insured banks or federally insured savings and loan associations for the account of the depositor;
(3)
when the money is deposited and the certificates of deposit are issued, the State financial institution receives deposits from customers of other banks or savings and loan associations in an amount at least equal to the amount of money initially deposited by the depositor;
(4)
each certificate of deposit issued for the depositor’s account is insured by the Federal Deposit Insurance Corporation for 100% of the principal of and accrued interest on the certificate of deposit; and
(5)
the State financial institution acts as custodian for the depositor with respect to the certificates of deposit issued for the depositor’s account.
(f)
A governmental entity or its authorized agent may deposit unexpended money in a federally insured bank or federally insured savings and loan association without the security required under subsection (d) of this section if:
(1)
the money is initially placed for deposit with a State financial institution chosen by the depositor to arrange for the redeposit of the money through a deposit placement program that meets the requirements under this subsection;
(2)
on or after the date that the money of the governmental entity is received, the State financial institution:
(i)
arranges for the redeposit of the money into one or more deposit accounts, each in an amount of not more than the applicable Federal Deposit Insurance Corporation maximum insurance coverage limit, in one or more federally insured banks or federally insured savings and loan associations for the account of the depositor; and
(ii)
acts as custodian for the depositor with respect to the money deposited into the accounts;
(3)
any money of a governmental entity deposited into a State financial institution in accordance with this subsection and held by that State financial institution at the close of a business day that is in excess of the amount insured by the Federal Deposit Insurance Corporation is secured in accordance with this title;
(4)
the full amount of the money of the governmental entity redeposited by the State financial institution into deposit accounts in federally insured banks or federally insured savings and loan associations under this subsection is insured by the Federal Deposit Insurance Corporation; and
(5)
on the same date that the money of the governmental entity is redeposited under this subsection, the State financial institution receives an amount of deposits from customers of other banks or savings and loans in accordance with the deposit placement program that is at least equal to the amount of the money of the governmental entity redeposited by the State financial institution.
(g)
(1)
The interest or income from an investment or deposit made under this section:
(i)
shall be credited to the fund from which the investment or deposit was made; and
(ii)
may be invested or deposited as provided in this section.
(2)
Notwithstanding paragraph (1) of this subsection, if the money invested or deposited under this section is from a fund that contains the proceeds of the issuance of bonds or other obligations, the issuer may use the interest or income from the investment or deposit to repay the principal of or interest on the bonds or other obligations.
(h)
A governmental entity or its authorized agent may withdraw or alter an investment or deposit made under this section:
(1)
to meet the requirements for which the money is held; or
(2)
for reinvestment in accordance with this section.
Md. Code Ann., Local Gov't § 17-102 (2026)
Title 17. Investment by Local Government
Subtitle 1. In General
§ 17–102LinkCopy Citation
(a)
In this section, “other postemployment benefits” means:
(1)
postemployment health care benefits; and
(2)
postemployment benefits provided separately from a pension plan.
(b)
Notwithstanding § 17–101 of this subtitle, the trustees or other officers in charge of a pension or retirement system or fund, other postemployment benefits fund, trust fund account, fund for self–insurance purposes, or facility closure reserve fund of a political subdivision of the State, a unit of a political subdivision of the State, or the Upper Potomac River Commission:
(1)
may:
(i)
invest and reinvest money in their custody or control as provided by:
(1)
a law enacted by the governing body of the political subdivision; or
(2)
in the case of the Upper Potomac River Commission, rules or procedures established by the Commission; and
(ii)
sell, redeem, or exchange an investment or reinvestment made under this item; and
(2)
shall comply with fiduciary standards that at least meet the standards in Title 21, Subtitle 2 of the State Personnel and Pensions Article in connection with money in their custody or control.
(c)
(1)
Notwithstanding any other law, a political subdivision of the State or a unit of a political subdivision of the State may enter into an agreement with a third party contractor or vendor for the management or investment of money intended for other postemployment benefits.
(2)
An agreement entered into under this subsection includes the authority to:
(i)
create pooled investments under the stewardship of:
(1)
a political subdivision of the State or a unit of a political subdivision of the State; or
(2)
a separate body under an agreement with a political subdivision of the State;
(ii)
create one or more accounts to be managed in coordination with other funds or investments by a third party under an agreement with a political subdivision of the State; and
(iii)
create distinct funding accounts for payment on behalf of employees of a unit of a political subdivision of the State under an agreement with the political subdivision.
(d)
(1)
Notwithstanding any other law, a political subdivision of the State or a unit of a political subdivision of the State may enter into an agreement with a third party contractor or vendor for the management or investment of money in a facility closure reserve fund.
(2)
An agreement entered into under this subsection includes the authority to:
(i)
create pooled investments under the stewardship of:
(1)
a political subdivision of the State or a unit of a political subdivision of the State; or
(2)
a separate body under an agreement with a political subdivision of the State; and
(ii)
create one or more accounts to be managed in coordination with other funds or investments by a third party under an agreement with a political subdivision of the State.
Md. Code Ann., Local Gov't § 17-103 (2026)
Title 17. Investment by Local Government
Subtitle 1. In General
§ 17–103LinkCopy Citation
(a)
This section applies to bond sale proceeds and other money that are:
(1)
subject to arbitrage, rebate, or similar limitations under federal tax law; and
(2)
in the custody or control of the controller, director of finance, or similar official of a charter county or Baltimore City.
(b)
Notwithstanding any other law, the controller, director of finance, or similar official of a charter county or Baltimore City may:
(1)
invest and reinvest bond proceeds and other money to which this section applies:
(i)
in bonds, notes, or other obligations that are:
(1)
of investment grade quality as established by a nationally recognized rating agency; and
(2)
issued by or on behalf of a state or a unit, political subdivision, public corporation, special district, or authority of a state; and
(ii)
directly or through a trust or fund that restricts investments to obligations of investment grade quality; and
(2)
sell, redeem, or exchange an investment or reinvestment made under item (1) of this subsection.
Md. Code Ann., Local Gov't § 17-104 (2026)
Title 17. Investment by Local Government
Subtitle 1. In General
§ 17–104LinkCopy Citation
(a)
This section applies to the following governmental entities:
(1)
the governing body of each county;
(2)
the governing body or chief fiscal or administrative officer of each municipality;
(3)
the governing body or chief fiscal or administrative officer of:
(i)
each road, drainage, improvement, construction, or soil conservation district or commission; or
(ii)
the Upper Potomac River Commission;
(4)
each county board of education, including the Baltimore City Board of School Commissioners;
(5)
any other political subdivision or body politic and corporate of the State;
(6)
a unit of a political subdivision of the State; and
(7)
the trustees or other officers in charge of a pension or retirement system or fund of:
(i)
the State;
(ii)
a political subdivision of the State; or
(iii)
a unit of the State or of a political subdivision of the State.
(b)
Notwithstanding any other law, when a governmental entity is required or authorized to invest in, purchase, or take as collateral a bond, an obligation, or any other evidence of indebtedness of the United States, the governmental entity may invest in, purchase, or take as collateral an obligation or security of or other interest in an open–end or closed–end management type investment company or investment trust registered under the federal Investment Company Act of 1940, 15 U.S.C. § 80A–1 et seq., if:
(1)
the portfolio of the investment company or investment trust is limited to:
(i)
direct obligations of the United States; and
(ii)
repurchase agreements that are fully collateralized by obligations of the United States; and
(2)
the investment company or investment trust takes delivery of the collateral directly or through an authorized custodian.
Subtitle 2. Local Government Investment Guidelines
Md. Code Ann., Local Gov't § 17-201 (2026)
Title 17. Investment by Local Government
Subtitle 2. Local Government Investment Guidelines
§ 17–201LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Financial officer” means the treasurer or other financial officer of a governmental entity who is responsible for the investment of public funds or the issuance and management of debt of the governmental entity.
(c)
“Governing authority” means:
(1)
for Baltimore City, the Baltimore City Board of Estimates;
(2)
for a commission county, the county commissioners;
(3)
for a charter county, as provided by local law, the county council or the county executive and the county council;
(4)
for a code county, the county commissioners;
(5)
for a community college, the board of trustees;
(6)
for a municipality, the body provided by the municipal charter;
(7)
for the Washington Suburban Sanitary Commission, the Commission;
(8)
for a public corporation, the board of directors; and
(9)
for an authority, the board of the authority.
(d)
(1)
Except as provided in paragraph (2) of this subsection, “public money” means any money held by a governmental entity.
(2)
“Public money” does not include money held as part of a pension fund, a fund for other postemployment benefits, as defined in § 17–102(a) of this title, a trust fund account, or a facility closure reserve fund or for self–insurance purposes.
Md. Code Ann., Local Gov't § 17-202 (2026)
Title 17. Investment by Local Government
Subtitle 2. Local Government Investment Guidelines
§ 17–202LinkCopy Citation
To the extent of any conflict, this subtitle and the local government investment guidelines adopted by the State Treasurer under this subtitle supersede:
(1)
any local law, including a charter provision; and
(2)
any other public general law.
Md. Code Ann., Local Gov't § 17-203 (2026)
Title 17. Investment by Local Government
Subtitle 2. Local Government Investment Guidelines
§ 17–203LinkCopy Citation
This subtitle applies to the following governmental entities:
(1)
each county;
(2)
each municipality;
(3)
each community college other than the Baltimore City Community College;
(4)
each regional community college established under Title 16, Subtitle 2 of the Education Article;
(5)
the Washington Suburban Sanitary Commission;
(6)
a public corporation authorized to issue debt; and
(7)
an authority of the State authorized to issue debt.
Md. Code Ann., Local Gov't § 17-204 (2026)
Title 17. Investment by Local Government
Subtitle 2. Local Government Investment Guidelines
§ 17–204LinkCopy Citation
(a)
(1)
After consulting with the governmental entities, the State Treasurer shall adopt by regulation local government investment guidelines to govern the investment of public money by the entities in a manner that:
(i)
facilitates sound cash management;
(ii)
protects the public; and
(iii)
ensures that each entity has access to its public money.
(2)
Prior to adopting regulations that alter the types of investments in which governmental entities may invest public money, the State Treasurer shall consult with the governmental entities.
(b)
The local government investment guidelines shall:
(1)
specify the types of investments in which public money may be invested;
(2)
include guidance for the prudent investment of public money based on cash flow projections, income, liquidity, investment ratings, and risk;
(3)
require that investments by a county board of education and a county board of library trustees comply with the local investment policy of the county; and
(4)
prohibit the borrowing of money for the express purpose of investment.
Md. Code Ann., Local Gov't § 17-205 (2026)
Title 17. Investment by Local Government
Subtitle 2. Local Government Investment Guidelines
§ 17–205LinkCopy Citation
(a)
The governing authority of each governmental entity shall adopt by resolution a local investment policy that:
(1)
meets the needs of the governmental entity; and
(2)
is consistent with the local government investment guidelines adopted by the State Treasurer under § 17–204 of this subtitle.
(b)
Promptly after the adoption of a local investment policy, the governmental entity shall mail a certified copy to the State Treasurer.
(c)
If the State Treasurer determines that the local investment policy is not consistent with the local government investment guidelines adopted by the State Treasurer under § 17–204 of this subtitle:
(1)
the State Treasurer shall notify the governmental entity; and
(2)
the governing authority shall prepare and submit a revised local investment policy that is consistent with the local government investment guidelines.
(d)
If the governing authority amends the governmental entity’s local investment policy, the governmental entity shall submit the new local investment policy to the State Treasurer in accordance with subsection (b) of this section.
Md. Code Ann., Local Gov't § 17-206 (2026)
Title 17. Investment by Local Government
Subtitle 2. Local Government Investment Guidelines
§ 17–206LinkCopy Citation
A financial officer may not invest public money of a governmental entity in a manner that is inconsistent with the entity’s local investment policy.
Md. Code Ann., Local Gov't § 17-207 (2026)
Title 17. Investment by Local Government
Subtitle 2. Local Government Investment Guidelines
§ 17–207LinkCopy Citation
(a)
(1)
Each governmental entity shall adopt by resolution, motion, or ordinance a local debt policy that:
(i)
is consistent with the Maryland Constitution and all applicable State and local laws; and
(ii)
meets the needs of the governmental entity.
(2)
Promptly after the adoption of a local debt policy, the governmental entity shall mail a certified copy to the State Treasurer.
(3)
If the State Treasurer determines that the local debt policy is not consistent with the Maryland Constitution or any applicable State or local law:
(i)
the State Treasurer shall notify the governmental entity; and
(ii)
the governmental entity shall prepare and submit a revised local debt policy.
(b)
If the governmental entity amends its local debt policy, the governmental entity shall submit its revised policy to the State Treasurer in accordance with subsection (a) of this section.
Md. Code Ann., Local Gov't § 17-208 (2026)
Title 17. Investment by Local Government
Subtitle 2. Local Government Investment Guidelines
§ 17–208LinkCopy Citation
(a)
The State Treasurer shall contact the governmental entity to seek compliance if a governmental entity does not maintain a local investment policy or local debt policy as required by this subtitle.
(b)
On request of the State Treasurer, a financial officer shall provide to the State Treasurer, in the format and time frame requested:
(1)
a report of the investment portfolio of the governmental entity; or
(2)
a report of the debt portfolio of the governmental entity in the format required under § 16–103 of this article.
(c)
If, after being contacted by the State Treasurer, a governmental entity does not comply with this section, the State Treasurer shall notify the Joint Committee on the Management of Public Funds in writing.
(d)
The Joint Committee on the Management of Public Funds may request the Attorney General to seek judicial enforcement of this subtitle against the governmental entity.
Subtitle 3. Investment Pools
Md. Code Ann., Local Gov't § 17-301 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–301LinkCopy Citation
(a)
In this part the following words have the meanings indicated.
(b)
“Authorized participant” means:
(1)
the governing body of each county or municipality;
(2)
a county board of education;
(3)
the governing body of each road, drainage, improvement, construction, or soil conservation district or commission in the State;
(4)
the Upper Potomac River Commission;
(5)
any other political subdivision or body politic and corporate of the State;
(6)
a local government insurance pool formed under Title 19, Subtitle 6 of the Insurance Article; or
(7)
on approval of the State Treasurer, a unit of State government or an entity created by the State if the funds of the unit or entity are not State money over which the Treasurer has investment authority.
(c)
“Pool” means the Local Government Investment Pool.
Md. Code Ann., Local Gov't § 17-302 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–302LinkCopy Citation
There is a Local Government Investment Pool.
Md. Code Ann., Local Gov't § 17-303 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–303LinkCopy Citation
The Pool consists of:
(1)
money of authorized participants that is deposited in the Pool; and
(2)
money of the State that is deposited in the Pool by the State Treasurer.
Md. Code Ann., Local Gov't § 17-304 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–304LinkCopy Citation
(a)
The State Treasurer shall administer the Pool on behalf of:
(1)
authorized participants; and
(2)
to the extent that State money is included in the Pool, the State.
(b)
The State Treasurer shall develop procedures necessary to administer the Pool efficiently, including:
(1)
specification of the minimum and maximum amounts that may be deposited by any authorized participant in the Pool and minimum periods of time for which deposits must be retained in the Pool;
(2)
payment of administrative expenses from the earnings of the Pool; and
(3)
distribution of earnings in excess of expenses or allocation of losses to authorized participants in a manner that equitably reflects the amount and duration of each authorized participant’s investments in the Pool.
Md. Code Ann., Local Gov't § 17-305 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–305LinkCopy Citation
(a)
The State Treasurer shall establish investment policies for the Pool.
(b)
Subject to the objectives and requirements of this part, the State Treasurer shall establish procedures for:
(1)
the investment and reinvestment of money in the Pool; and
(2)
the acquisition, retention, management, and disposition of investments of the Pool.
(c)
(1)
The State Treasurer shall invest money in the Pool in accordance with §§ 6–222 and 6–223 of the State Finance and Procurement Article.
(2)
Notwithstanding any other law, the State Treasurer may:
(i)
invest and reinvest money in the Pool in bankers’ acceptances guaranteed by banks; and
(ii)
sell, redeem, or exchange an investment or reinvestment made under this paragraph.
(d)
Except as otherwise provided in this part, the State Treasurer shall retain custody of all instruments of title to all investments of the Pool.
(e)
(1)
The State Treasurer may deposit with one or more fiscal agents or banks any instruments of title to investments of the Pool that the State Treasurer considers advisable.
(2)
A fiscal agent or bank shall hold any instruments of title deposited with the agent or bank for collection of:
(i)
the principal of and interest or other income from the investments; or
(ii)
the proceeds of sale of the investments.
(f)
The State Treasurer shall collect the principal of and interest or other income from investments of the Pool, the instruments of title to which are in the State Treasurer’s custody, when due and payable.
Md. Code Ann., Local Gov't § 17-306 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–306LinkCopy Citation
(a)
The State Treasurer may:
(1)
contract with a qualified Maryland fiscal agent; and
(2)
compensate the fiscal agent for services rendered.
(b)
The fiscal agent may perform administrative and investment services that the State Treasurer performs under this part.
Md. Code Ann., Local Gov't § 17-307 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–307LinkCopy Citation
Except for State money, money deposited in the Pool is not money of the State.
Md. Code Ann., Local Gov't § 17-308 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–308LinkCopy Citation
(a)
The governing authority of an authorized participant may direct its financial officer to remit to the State Treasurer for investment in the Pool money that:
(1)
is available for investment; and
(2)
is not required, by law or a covenant or agreement with bondholders or others, to be segregated and invested in a different manner.
(b)
The governing authority of an authorized participant having money intended for other postemployment benefits that are available for investment, as authorized under § 17–102 of this title, may direct its financial officer to remit that money to the State Treasurer for investment in the Pool.
(c)
(1)
If the governing authority of an authorized participant determines that it is in the best interest of the authorized participant to deposit money in the Pool, the governing authority shall:
(i)
adopt a resolution or ordinance authorizing the deposit; and
(ii)
file a certified copy of the resolution or ordinance with the State Treasurer accompanied by a statement of the approximate cash flow requirements of the authorized participant for the invested money.
(2)
The resolution or ordinance shall indicate the official of the authorized participant who is responsible for depositing money in and withdrawing money from the Pool.
(d)
Each subsequent deposit of money into the Pool shall be accompanied by a statement of:
(1)
the intended duration of the investment; or
(2)
the anticipated date of withdrawal of the money from the Pool.
Md. Code Ann., Local Gov't § 17-309 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–309LinkCopy Citation
(a)
The State Treasurer shall maintain a separate account designated by name or number for each authorized participant in the Pool, including the State, to record the individual transactions and totals of all investments of each authorized participant.
(b)
At least monthly, the State Treasurer shall credit accumulated income to each authorized participant’s account.
(c)
(1)
The State Treasurer shall provide to each authorized participant a monthly report of the changes in investments made during the preceding month.
(2)
On request, the State Treasurer shall provide a detailed report of any transaction relating to an investment of an authorized participant.
(d)
On request, the State Treasurer shall pay from the Pool the principal and credited income of an account maintained for an authorized participant if the request conforms to the terms of the deposit.
(e)
(1)
The State Treasurer may not make a payment from an account of an authorized participant in an amount that exceeds the total amount of money in the account.
(2)
The payee shall refund any excess amount paid.
Md. Code Ann., Local Gov't § 17-312 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–312LinkCopy Citation
There is a Montgomery County Investment Pool.
Md. Code Ann., Local Gov't § 17-313 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–313LinkCopy Citation
(a)
The Montgomery County Investment Pool consists of money deposited in the Pool for investment purposes by:
(1)
Montgomery County;
(2)
other local governments; and
(3)
public and nonprofit entities.
(b)
The Montgomery County Investment Pool may not accept money from an entity that was not a participant in the Pool on July 1, 1996.
Md. Code Ann., Local Gov't § 17-314 (2026)
Title 17. Investment by Local Government
Subtitle 3. Investment Pools
§ 17–314LinkCopy Citation
The Montgomery County Investment Pool shall be:
(1)
administered by the Montgomery County Director of Finance; and
(2)
managed in accordance with the local investment policy adopted by Montgomery County under § 17–205 of this title.