In this part the following words have the meanings indicated. “Authorized participant” means: the governing body of each county or municipality; a county board of education; the governing body of each road, drainage, improvement, construction, or soil conservation district or commission in the State; the Upper Potomac River Commission; any other political subdivision or body politic and corporate of the State; a local government insurance pool formed under Title 19, Subtitle 6 of the Insurance Article; or 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. “Pool” means the Local Government Investment Pool.

There is a Local Government Investment Pool.

The Pool consists of: money of authorized participants that is deposited in the Pool; and money of the State that is deposited in the Pool by the State Treasurer.

The State Treasurer shall administer the Pool on behalf of: authorized participants; and to the extent that State money is included in the Pool, the State. The State Treasurer shall develop procedures necessary to administer the Pool efficiently, including: 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; payment of administrative expenses from the earnings of the Pool; and 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.

The State Treasurer shall establish investment policies for the Pool. Subject to the objectives and requirements of this part, the State Treasurer shall establish procedures for: the investment and reinvestment of money in the Pool; and the acquisition, retention, management, and disposition of investments of the Pool. The State Treasurer shall invest money in the Pool in accordance with §§ 6–222 and 6–223 of the State Finance and Procurement Article. Notwithstanding any other law, the State Treasurer may: invest and reinvest money in the Pool in bankers’ acceptances guaranteed by banks; and sell, redeem, or exchange an investment or reinvestment made under this paragraph. Except as otherwise provided in this part, the State Treasurer shall retain custody of all instruments of title to all investments of the Pool. 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. A fiscal agent or bank shall hold any instruments of title deposited with the agent or bank for collection of: the principal of and interest or other income from the investments; or the proceeds of sale of the investments. 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.

The State Treasurer may: contract with a qualified Maryland fiscal agent; and compensate the fiscal agent for services rendered. The fiscal agent may perform administrative and investment services that the State Treasurer performs under this part.

Except for State money, money deposited in the Pool is not money of the State.

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: is available for investment; and is not required, by law or a covenant or agreement with bondholders or others, to be segregated and invested in a different manner. 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. 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: adopt a resolution or ordinance authorizing the deposit; and 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. 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. Each subsequent deposit of money into the Pool shall be accompanied by a statement of: the intended duration of the investment; or the anticipated date of withdrawal of the money from the Pool.

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. At least monthly, the State Treasurer shall credit accumulated income to each authorized participant’s account. The State Treasurer shall provide to each authorized participant a monthly report of the changes in investments made during the preceding month. On request, the State Treasurer shall provide a detailed report of any transaction relating to an investment of an authorized participant. 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. 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. The payee shall refund any excess amount paid.

There is a Montgomery County Investment Pool.

The Montgomery County Investment Pool consists of money deposited in the Pool for investment purposes by: Montgomery County; other local governments; and public and nonprofit entities. The Montgomery County Investment Pool may not accept money from an entity that was not a participant in the Pool on July 1, 1996.

The Montgomery County Investment Pool shall be: administered by the Montgomery County Director of Finance; and managed in accordance with the local investment policy adopted by Montgomery County under § 17–205 of this title.