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HF 3065

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 04/09/2010 11:10am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to local government; providing for securities lending agreements and
holding of municipal funds; amending Minnesota Statutes 2008, sections
118A.05, subdivision 3; 118A.06.

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

Section 1.

Minnesota Statutes 2008, section 118A.05, subdivision 3, is amended to read:


Subd. 3.

Securities lending agreements.

Securities lending agreements, including
custody agreements, may be entered into with a financial institution meeting the
qualifications of subdivision 2, clause (1) or (2), and having deleted text beginits principal executive officedeleted text endnew text begin a
bank office located
new text end in Minnesota. Securities lending transactions may be entered into with
entities meeting the qualifications of subdivision 2 and the collateral for such transactions
shall be restricted to the securities described in this section and section 118A.04.

Sec. 2.

Minnesota Statutes 2008, section 118A.06, is amended to read:


118A.06 SAFEKEEPING; ACKNOWLEDGEMENTS.

new text begin (a) new text endInvestments, contracts, and agreements may be held in safekeeping with:

(1) any Federal Reserve bank;

(2) any bank authorized under the laws of the United States or any state to exercise
corporate trust powers, including, but not limited to, the bank from which the investment
is purchased;

(3) a primary reporting dealer in United States government securities to the Federal
Reserve Bank of New York; or

(4) a securities broker-dealer deleted text beginhaving its principal executive office in Minnesota,
licensed under chapter 80A
deleted text end, or an affiliate of it, deleted text beginanddeleted text endnew text begin that meets the following requirements:
new text end

new text begin (i) it is registered as a broker-dealer under chapter 80A or is exempt from the
registration requirements;
new text end

new text begin (ii) it isnew text end regulated by the Securities and Exchange Commissiondeleted text begin; provided thatdeleted text endnew text begin; and
new text end

new text begin (iii) it maintains insurance through the Securities Investor Protection Corporation
or excess insurance coverage in an amount equal to or greater than the value of the
securities held.
new text end

new text begin (b)new text end The government entity's ownership of all securities deleted text beginisdeleted text endnew text begin under paragraph (a) must
be
new text end evidenced by written acknowledgments identifying the securities by the names of the
issuers, maturity dates, interest rates, CUSIP number, or other distinguishing marks.