HF 2174

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 03/19/2012 05:40pm

A bill for an act
relating to local government finance; authorizing certain investments; providing
for designated depositories; amending Minnesota Statutes 2010, sections
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 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 in accordance with 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, savings and loan
associations, or credit unions that are located in the United States, and (ii) serve as
custodian for the district with respect to the money redeposited into such accounts.
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 or the National
Credit Union Share Insurance Fund. Any entity serving as subcustodian for the official
depository shall have had at least five years of general custodial experience.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

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 in accordance with 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, savings and
loan associations, or credit unions that are located in the United States, and (ii) serve as
custodian for the town with respect to the money redeposited into such accounts.
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 or the National Credit Union
Share Insurance Fund. Any entity serving as subcustodian for the designated depository
shall have had at least five years of general custodial experience.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

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 in accordance
with 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, savings and
loan associations, or credit unions that are located in the United States, and (ii) serve as
custodian for the county with respect to the funds redeposited into such accounts.
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 or the National Credit
Union Share Insurance Fund. Any entity serving as subcustodian for the designated
depository shall have had at least five years of general custodial experience.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

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 in accordance with 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, savings and
loan associations, or credit unions that are located in the United States, and (ii) serve as
custodian for the city with respect to the money redeposited into such accounts.
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 or the National Credit Union
Share Insurance Fund. Any entity serving as subcustodian for the designated depository
shall have had at least five years' experience serving in that capacity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end