(a)      (1)      There is a Local Government Investment Pool. The Local Government Investment Pool consists of the aggregate of all funds from local governments that are placed in the custody of the State and any funds of the State that are placed in the Local Government Investment Pool by the Treasurer for investment and reinvestment.

            (2)      The investment policies for the Local Government Investment Pool shall be established by the Treasurer.

            (3)      The Treasurer shall administer the Local Government Investment Pool on behalf of the participating local governments and, to the extent that State funds are included, on behalf of the State.

            (4)      The Treasurer shall develop such procedures necessary for the efficient administration of the Pool, including:

                  (i)      Specification of minimum amounts which may be deposited in the Pool and minimum periods of time for which deposits shall be retained in the Pool;

                  (ii)      Payment of amounts equivalent to administrative expenses from the earnings of the Pool; and

                  (iii)      Distribution of the earnings in excess of expenses, or allocation of losses, to the several participants in a manner which equitably reflects the differing amount of their respective investments and the differing periods of time for which the amounts were in the custody of the Pool.

      (b)      (1)      The Treasurer shall invest moneys in the Local Government Investment Pool in accordance with the provisions set forth in §§ 6-222 and 6-223 of the State Finance and Procurement Article.

            (2)      Notwithstanding any provisions of law to the contrary or any limitation or restriction contained in any other law, the Treasurer may invest, redeem, sell, exchange, and reinvest moneys in the Local Government Investment Pool in bankers' acceptances guaranteed by banking institutions.

      (c)      (1)      The governing authority of any local government having funds which are available for investment and which are not required by law or by any covenant or agreement with bondholders or others to be segregated and invested in a different manner may direct its financial officer to remit funds to the Treasurer for investment as part of the Local Government Investment Pool.

            (2)      Upon determination by the local governing authority that it is in the best interest of the local government to deposit funds in the Investment Pool, it shall adopt and file with the Treasurer a certified copy of a resolution or ordinance authorizing investment of its funds in the Investment Pool. The resolution or ordinance shall name the local government official or officials responsible for deposit and withdrawal of such funds.

            (3)      The resolution or ordinance filed with the Treasurer shall be accompanied by a statement as to the approximate cash flow requirements of the local government for the invested funds. Subsequent deposits into the Investment Pool shall be accompanied by a statement as to the intended duration of the investment or the anticipated date of withdrawal of the funds from the Pool.

      (d)      A separate account designated by name or number for each participant in the fund, including the State, shall be kept to record individual transactions and totals of all investments belonging to each participant. A monthly report showing the changes in investments made during the preceding month shall be furnished to each participant in the Investment Pool. Details of any investment transaction shall be furnished to any participant upon request.

      (e)      The principal and credited income of each account maintained for a participant in the Investment Pool shall be subject to payment from the Pool upon request, provided that the request for payment is made in accordance with the terms of the deposit. Accumulated income shall be credited to each participant account at least monthly.

      (f)      Except as provided in this section, all instruments of title of all investments of the Investment Pool shall remain in the custody of the Treasurer. The Treasurer may deposit with one or more fiscal agents or banks those instruments of title he considers advisable, to be held in safekeeping by the agents or banks for collection of the principal and interest or other income, or of the proceeds of sale. The Treasurer shall collect the principal and interest or other income from investments of the Investment Pool, the instruments of title to which are in his custody, when due and payable.

      (g)      A payment may not be issued upon any account in an amount greater than the sum total of the particular account to which it applies. If such payment is issued, it shall be refunded by the distributee.

      (h)      (1)      Subject to the objectives and requirements of this section, the Treasurer shall formulate procedures for the investment and reinvestment of funds in the Investment Pool and the acquisition, retention, management, and disposition of investments of the Investment Pool.

            (2)      (i)      The Treasurer may enter into a contractual agreement with a qualified Maryland fiscal agent and may compensate the agent for services rendered.

                  (ii)      The agent may perform investment and administrative services which the Treasurer is authorized by this section to perform.

      (i)      Funds placed in the Local Government Investment Pool, other than funds of the State, may not be considered to be Treasury funds.

      (j)      For the purposes of this section, "local government" includes all of the legal entities, bodies, and agencies set out in § 22 of this article and local government insurance pools formed under Title 19, Subtitle 6 of the Insurance Article, but does not include the State and agencies of the State.