Conditions to Investing. Prior to engaging in an investment activity under this chapter, the Board of Trustees shall: Fully fund the actuarially calculated ultimate loss liability of the Fund; and Submit to the Commission for approval an Annual Investment Plan that satisfies the requirements of this regulation. The Annual Investment Plan submitted to the Commission shall include: A statement of investment policy and current year objectives; A complete asset allocation study; Projected investment activity for the coming year by asset allocation group; and A signed acknowledgement from any fiduciary acknowledging his or her fiduciary responsibilities and the prohibited transactions set forth in Regulation .06E of this chapter. Investing of Surplus Monies in Insured and Government Obligations. The Board of Trustees may invest all surplus monies not needed to meet current obligations in: Investments authorized by State Finance and Procurement Article, §6-222, Annotated Code of Maryland; United States Government Bonds or Treasury Notes; Investment shares accounts in any savings and loan association whose deposits are insured by a federal agency; and Certificates of deposit issued by a duly chartered commercial bank. Except as provided in §B(3) of this regulation, the Board of Trustees: Shall limit deposits in savings and loan associations and commercial banks to institutions in this State; and May not deposit more than the federally insured amount in any one account. Notwithstanding §B(2) of this regulation, the Board of Trustees may deposit more than the federally insured amount in any one account if the amount does not exceed: 5 percent of the combination of surplus and undivided profits and reserves as currently reported for each bank in this State in the banking division annual report of the Financial Institution Bureau of the Department of Commerce (banking control); or $500,000 per institution. Investing of Surplus Monies in Equities. The Board of Trustees may, subject to the requirements of this chapter, invest a maximum of 30 percent of surplus monies not needed to meet current obligations in equities. Of the monies that may be invested in equities pursuant to §C(1) of this regulation, the Board of Trustees may not invest more than: 33-1/3 percent, at cost, or 50 percent at market value, in any single equity fund, bond fund, or ETF, including any single country, commodity, or sector fund; and 5 percent, at cost, or 8 percent at market value, in any single listed equity, right, depositary receipt, or convertible security. Notwithstanding the investment allocation restrictions in §C(2) of this regulation, in the case of an equity investment whose weighting is greater than 5 percent of the applicable benchmark index, the Board of Trustees may be permitted to equal-weight the equity investment at cost and hold a market value weighting not to exceed 1-1/2 times the equity investment's index weighting. The Board of Trustees may invest in only the following equities: Preferred stock of a solvent institution that is: Not in default of dividend, principal, or interest payments on any preferred stock or debt instrument; and Created or existing under the laws of the United States, Canada, a state, or a province of Canada; Common stock of a solvent corporation created or existing under the laws of the United States, Canada, a state, or a province of Canada that is: Not in default of dividend, principal, or interest payments on any preferred stock or debt instrument; Publicly traded on an American stock exchange; and Subject to the rules and regulation of the SEC; Common Stock Mutual Funds and Bond Mutual Funds created by investment managers that are formed and operated under the laws of the United States, Canada, a state, or a province of Canada that are: Publicly traded and readily marketable; Offered for purchase and redemption to the public; and Are subject to the rules and regulation of the SEC and the existing laws and regulations of a State, province, or nation in which they reside; and An ETF that is formed and operated under the laws of the United States, Canada, a state, or a province of Canada and that is: Readily marketable; Offered for purchase and redemption to the public; and Subject to the rules and regulation of the SEC and the existing laws and regulations of the state, province, or nation in which it resides.