HF 2174

as introduced - 87th Legislature (2011 - 2012) Posted on 02/09/2012 02:14pm

A bill for an act
relating to local government finance; authorizing certain investments; providing
for designated depositories; amending Minnesota Statutes 2010, sections
118A.04, subdivision 5; 123B.14, subdivision 3; 366.01, subdivision 4; 385.07;
427.06.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 118A.04, subdivision 5, is amended to read:

Subd. 5.

Time deposits new text begin and other interest-bearing deposits new text end .

Funds may be
invested in time deposits new text begin and other interest-bearing deposits new text end that are fully insured by the
Federal Deposit Insurance Corporation or bankers acceptances of United States banks.

Sec. 2.

Minnesota Statutes 2010, section 123B.14, subdivision 3, is amended to read:

Subd. 3.

Official depository.

new text begin (a) new text end The treasurer shall deposit the funds of the district
in the official depository.

new text begin (b) In addition to the authority for deposit of district money pursuant to paragraph (a)
or other provisions of this chapter, the treasurer may deposit district money in the official
depository under the following conditions:
new text end

new text begin (1) The official depository is authorized by the treasurer to (i) arrange for the
redeposit of the money into deposit accounts in one or more banks or savings and loan
associations that are located in the United States, and (ii) serve as custodian for the
district with respect to the money redeposited into such accounts. An entity serving as
subcustodian for the official depository shall have at least five years' experience serving in
that capacity.
new text end

new text begin (2) The full amount of the redeposited district funds, plus accrued interest, if any,
must be insured by the Federal Deposit Insurance Corporation.
new text end

new text begin (3) On the same date that the district money is redeposited, the official depository
receives an amount of deposits from customers of other financial institutions that is equal
to the amount of the district money redeposited by the official depository.
new text end

Sec. 3.

Minnesota Statutes 2010, section 366.01, subdivision 4, is amended to read:

Subd. 4.

Depository; terms; liability; interest.

new text begin (a) new text end They may designate a bank as
the depository of town money for a time not extending beyond their official term, after the
execution by the bank of a sufficient bond to the town to be approved by the board and
filed in the office of the town clerk. They may then require the treasurer to deposit all or
part of the town money in that bank. The designation shall be in writing, and set forth all
the terms upon which the deposits are made. It shall be signed by the chair and clerk and
filed with the clerk. The town treasurer shall not be liable for the loss of money while
deposited in the bank. All interest on the money shall belong to the town.

new text begin (b) In addition to the authority for deposit of town money pursuant to paragraph
(a) or other provisions of this chapter, the town treasurer may deposit town money in a
designated depository under the following conditions:
new text end

new text begin (1) The designated depository is authorized by the town treasurer to (i) arrange for
the redeposit of the money into deposit accounts in one or more banks or savings and
loan associations that are located in the United States, and (ii) serve as custodian for
the town with respect to the money redeposited into such accounts. An entity serving
as subcustodian for the designated depository shall have at least five years' experience
serving in that capacity.
new text end

new text begin (2) The full amount of the redeposited town funds, plus accrued interest, if any, must
be insured by the Federal Deposit Insurance Corporation.
new text end

new text begin (3) On the same date that the town money is redeposited, the designated depository
receives an amount of deposits from customers of other financial institutions that is equal
to the amount of the town money redeposited by the designated depository.
new text end

Sec. 4.

Minnesota Statutes 2010, section 385.07, is amended to read:

385.07 FUNDS, WHERE DEPOSITED OR INVESTED.

new text begin (a) new text end All county funds shall be deposited promptly and intact by the county treasurer
in the name of the county or invested as provided in section 118A.04. Interest and profits
which accrue from such investment shall, when collected, be credited to the general
revenue fund of the county.

new text begin (b) In addition to the authority for deposit of county funds pursuant to paragraph
(a), the county treasurer may deposit county funds in a designated depository under the
following conditions:
new text end

new text begin (1) The designated depository is authorized by the county treasurer to (i) arrange
for the redeposit of the funds into deposit accounts in one or more banks or savings and
loan associations that are located in the United States, and (ii) serve as custodian for
the county with respect to the funds redeposited into such accounts. An entity serving
as subcustodian for the designated depository shall have at least five years' experience
serving in that capacity.
new text end

new text begin (2) The full amount of the redeposited county funds, plus accrued interest, if any,
must be insured by the Federal Deposit Insurance Corporation.
new text end

new text begin (3) On the same date that the county funds are redeposited, the designated depository
receives an amount of deposits from customers of other financial institutions that is equal
to the amount of the county funds redeposited by the designated depository.
new text end

Sec. 5.

Minnesota Statutes 2010, section 427.06, is amended to read:

427.06 MONEY, HOW DEPOSITED; CHECKS, HOW DRAWN.

new text begin (a) new text end All money of any city kept in accordance with sections 427.02 to 427.07 in any
depository designated by the council of the city shall be kept and deposited in the name
of the city and the depository shall have no authority to pay out this money except upon
checks drawn upon the depository signed by the city treasurer and countersigned by the
city comptroller or recording officer of the city.

new text begin (b) In addition to the authority for deposit of city money pursuant to paragraph (a) or
other provisions of this chapter, the city treasurer may deposit city money in a designated
depository under the following conditions:
new text end

new text begin (1) The designated depository is authorized by the city treasurer to (i) arrange for
the redeposit of the money into deposit accounts in one or more banks or savings and
loan associations that are located in the United States, and (ii) serve as custodian for
the city with respect to the money redeposited into such accounts. An entity serving
as subcustodian for the designated depository shall have at least five years' experience
serving in that capacity.
new text end

new text begin (2) The full amount of the redeposited city funds, plus accrued interest, if any, must
be insured by the Federal Deposit Insurance Corporation.
new text end

new text begin (3) On the same date that the city money is redeposited, the designated depository
receives an amount of deposits from customers of other financial institutions that is equal
to the amount of the city money redeposited by the designated depository.
new text end