HF 2666

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to state government; authorizing a pilot 
  1.3             project under which the State Board of Investment may 
  1.4             make certain additional investments in Minnesota 
  1.5             financial institutions rated outstanding under the 
  1.6             Federal Community Reinvestment Act. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [INVESTMENT PILOT PROJECT.] 
  1.9      In addition to investments authorized by Minnesota 
  1.10  Statutes, section 11A.24, subdivision 4, paragraph (a), the 
  1.11  State Board of Investment may invest in repurchase agreements 
  1.12  issued by United States banks and savings institutions having a 
  1.13  home office or detached facility in Minnesota whose most recent 
  1.14  rating under the Federal Community Reinvestment Act is 
  1.15  "outstanding."  Notwithstanding Minnesota Statutes, section 
  1.16  11A.24, subdivision 4, paragraph (a), clause (5), for 
  1.17  investments under this section, the State Board of Investment 
  1.18  must require collateral.  The state board may not have total 
  1.19  outstanding investments, at any one time, of more than 
  1.20  $50,000,000 under authority of this section.  This limit does 
  1.21  not apply to investments that meet the criteria in Minnesota 
  1.22  Statutes, section 11A.24, subdivision 4, paragraph (a).  If the 
  1.23  state board invests in repurchase agreements under authority of 
  1.24  this section in an institution rated "outstanding," and the 
  1.25  institution later receives a different rating, the state board 
  1.26  may retain the investment for the term of the repurchase 
  2.1   agreement, but may not renew the repurchase agreement or invest 
  2.2   in new repurchase agreements from the institution under 
  2.3   authority of this section until the institution receives an 
  2.4   "outstanding" rating.  This section expires June 30, 2006. 
  2.5      [EFFECTIVE DATE.] This section is effective the day 
  2.6   following final enactment.