$44,911,000 carrying value of deposits as of June 30,1996, $32,919,000 was unissued and uncollateralized. The bank
balance for the deposits as of June 30, 1996, was $44,911,000.

Investments of the enterprise funds are stated at cost, adjusted for amortization of premiums and accretion of
discounts. The investment policies for all enterprise funds, with the exception of the Community Development
Administration, are the same as those of the State Treasurer. The Community Development Administration, an
agency of the Department of Housing and Community Development, is authorized to invest in obligations of the
U.S. Treasury, U.S. Government agencies and corporations, political subdivisions of the U.S., banker's acceptances,
repurchase agreements, corporate debt securities and certificates of deposit with foreign or domestic banks. The
U.S. Treasury and agency obligations and collateral for the repurchase agreements are held by the enterprise fund's
agent in the enterprise fund's name.

The Pension Trust Funds (Funds), in accordance with State Personnel and Pensions Article Section 21-123 of
the Annotated Code of Maryland, are permitted to make investments subject to the terms, conditions, limitations,
and restrictions imposed by the Board of Trustees of the State Retirement and Pension Systems of Maryland. The
law further provides that not more than 25% of the assets that are invested in common stocks may be invested in
non-dividend paying common stocks. The Funds' investments are commingled in four combined investment
accounts. Two investment accounts consist principally of bonds and other fixed income investments, another
consists of pooled real estate funds, real estate investment trusts and directly owned real estate, and the fourth
investment account consists principally of common stocks. Investments of the Funds are stated at cost, adjusted
for amortization of premiums and accretion of discounts.

The investments as of June 30,1996, for the enterprise and pension trust funds of the Primary Government are
as follows (amounts expressed in thousands).

	Category		Carrying	Market
	1 2	3	Value	Value
U.S. Treasury and agency obligations .......................................................	$ 801,019		$ 801,019	$ 837,589
Repurchase agreements .............................................................................. .	124,000		124,000	124,000
Bonds..............................................................................................................	8,333,578		8,333,578	8,333,578
Corporate equity securities .........................................................................	9,859,647		9,859,647	9,859,647
	$19,118,244		19,118,244	19,154,814
Annuity and guaranteed investment contracts ........................................			51,659	51,659
Mutual funds..................................................................................................			1,415,899	1,415,899
Real estate......................................................................................................			354,895	354,895
Total.............................................................................................................			$20,940,697	$20,977,267

The Funds participate in a securities lending program under which specified securities are loaned to
independent brokers, in return for collateral of greater value. All loaned securities are reported as assets on the
balance sheet and are included in the preceding categorization of custodial credit risk.

Borrowing brokers must transfer collateral valued at a minimum of 102% of the market value of domestic
securities and international fixed income securities, or 105% of the market value of international equity securities
on loan. Collateral is marked-to-market daily. If the market value of the pledged collateral falls below the specified
levels, additional collateral is required to be pledged by the close of the next business day. In the event of default
by a borrowing broker, the Funds' custodial bank is obligated to indemnify the Funds if, and to the extent that, the
market value of collateral is insufficient to replace the loaned securities. The Funds have not experienced any loss
due to credit or market risk on securities lending activity since inception of the program. Further, as of June 30,
1996, the Funds had no credit risk exposure to borrowers because the market value of collateral held exceeded the
market value of securities loaned. As of June 30, 1996, the market value of loaned securities and the related
collateral were as follows (amounts expressed in thousands).

	Market		Percent
Securities	Value	Collateral	Collateralized
International Equity.........................................................................................................................................	$ 424,528	$ 451,410	106.33%
Domestic & International Fixed....................................................................................................................	2,394,984	2,480,092	103.55
Total........................................................?	$2,819,512	$2,931,502

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