HF 3065

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

1.1A bill for an act 1.2relating to local government; providing for securities lending agreements and 1.3holding of municipal funds;amending Minnesota Statutes 2008, sections 1.4118A.05, subdivision 3; 118A.06. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6    Section 1. Minnesota Statutes 2008, section 118A.05, subdivision 3, is amended to read: 1.7    Subd. 3. Securities lending agreements. Securities lending agreements, including 1.8custody agreements, may be entered into with a financial institution meeting the 1.9qualifications of subdivision 2, clause (1) or (2), and having its principal executive office new text begin new text end 1.10 new text begin an office located new text end in Minnesota. Securities lending transactions may be entered into with 1.11entities meeting the qualifications of subdivision 2 and the collateral for such transactions 1.12shall be restricted to the securities described in this section and section 118A.04. 1.13    Sec. 2. Minnesota Statutes 2008, section 118A.06, is amended to read: 1.14118A.06 SAFEKEEPING; ACKNOWLEDGEMENTS. 1.15 new text begin (a) new text end Investments, contracts, and agreements may be held in safekeeping with: 1.16(1) any Federal Reserve bank; 1.17(2) any bank authorized under the laws of the United States or any state to exercise 1.18corporate trust powers, including, but not limited to, the bank from which the investment 1.19is purchased; 1.20(3) a primary reporting dealer in United States government securities to the Federal 1.21Reserve Bank of New York; or 1.22(4) a securities broker-dealer having its principal executive office in Minnesota, 1.23licensed under chapter 80A, or an affiliate of it, and new text begin that meets the following requirements: new text end 2.1 new text begin (i) it is registered as a broker-dealer under chapter 80A or is exempt from the new text end 2.2 new text begin registration requirements; new text end 2.3 new text begin (ii) it is new text end regulated by the Securities and Exchange Commission; provided that new text begin ; and new text end 2.4 new text begin (iii) it maintains insurance through the Securities Investor Protection Corporation new text end 2.5 new text begin or excess insurance coverage in an amount equal to or greater than the value of the new text end 2.6 new text begin securities held. new text end 2.7 new text begin (b) new text end The government entity's ownership of all securities is new text begin under paragraph (a) must new text end 2.8 new text begin be new text end evidenced by written acknowledgments identifying the securities by the names of the 2.9issuers, maturity dates, interest rates, CUSIP number, or other distinguishing marks.