HF 3040

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2014 02:46pm

A bill for an act
relating to investment of public funds; authorizing investment in certain
negotiated certificates of deposit; amending Minnesota Statutes 2012, section
118A.04, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, section 118A.04, is amended by adding a
subdivision to read:

Subd. 5a.

Negotiable certificates of deposit.

Funds may be invested in negotiable
certificates of deposit or other evidences of deposit, with a remaining maturity of three
years or less, issued by a nationally chartered or state-chartered bank, a federal or state
savings and loan association, or a state-licensed branch of a foreign bank, except that
for obligations with a maturity of one year or less, the debt obligations of the issuing
institution or its parent must be rated in the top short-term rating category by at least
two nationally recognized statistical ratings organizations and for obligations with a
maturity in excess of one year, the senior debt obligations of the issuing institution or its
parent must be rated at least "A" or its equivalent by at least two nationally recognized
statistical ratings organizations. Investments in these instruments are not subject to the
collateralization requirements of section 118A.03.

Sec. 2. EFFECTIVE DATE.

Section 1 is effective the day following final enactment.