Marvin Mandel, Governor                       2139

tation. Under the one year limitation, companies would be forced to
pay more unjustified claims, thereby causing higher premiums for
new purchasers of health insurance.

For these reasons, I feel that Senate Bill 267 must be vetoed.

Sincerely,

/s/ Marvin Mandel,

Governor.

Senate Bill No. 420—Non-Resident Trustees on Deeds of Trust

AN ACT to add new Section 44 to Article 21 of the Annotated
Code of Maryland (1966 Replacement Volume and 1969 Supple-
ment), title "Conveyances," subtitle "Deeds of Trust," prohibiting
non-resident trustees on deeds conveying real estate in Maryland.
(1969 SUPPLEMENT), TITLE "CONVEYANCING," SUBTITLE
"DEPOSITS ON NEW HOMES," TO FOLLOW IMMEDIATELY
AFTER SECTION 43 THEREOF AND TO BE UNDER THE
NEW SUBTITLE "DEEDS OF TRUST," PROHIBITING NON-
RESIDENT TRUSTEES ON DEEDS OF TRUST AND GENER-
ALLY RELATING THERETO.

May 26, 1970.

Honorable William S. James
President of the Senate
State House
Annapolis, Maryland

Dear Mr. President:

In accordance with Article II, Section 17, of the Maryland Con-
stitution, I have today vetoed Senate Bill 420.

This bill requires that only persons who are residents of the
State of Maryland or corporations qualified to do business in the
State of Maryland shall be permitted to act as trustees of deeds of
trust covering real estate in the State of Maryland. As a traditional
matter, there are no requirements relating to the residency of the
trustees of deeds of trust, and many of the persons purchasing homes
in the area of Maryland which is adjacent to the District of Colum-
bia, find that they obtain their financing from banks and savings and
loan associations which are located in the District of Columbia. As a
traditional matter, the lending institutions generally appoint one of
their executives to serve as trustee of these deeds of trust. It is my
understanding that if the State of Maryland were to require that the
trustees be residents of the State, this might affect the availability of
mortgage money for home mortgages in Maryland. It would not be
wise, in light of the present economic conditions, to take any steps
which would cause a further scarcity of mortgage funds.

Several attorneys and members of the General Assembly have
also expressed to me the fear that serious title questions could be
raised with reference to deeds of trust which are presently a matter