(a) 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: (1) facilitates sound cash management; (2) protects the public; and (3) ensures that each entity has access to its public money. (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.
Maryland Legal Code