as introduced - 86th Legislature (2009 - 2010) Posted on 02/17/2010 04:35pm
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:
Minnesota Statutes 2008, section 118A.05, subdivision 3, is amended to read:
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 begin its principal executive officedeleted text end new text begin
business operations locatednew 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.
Minnesota Statutes 2008, section 118A.06, is amended to read:
new text begin (a) new text end Investments, 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 begin having its principal executive office in Minnesota,
licensed under chapter 80Adeleted text end , or an affiliate of it, deleted text begin anddeleted text end new 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 end new 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 begin isdeleted text end new text begin under paragraph (a) must
benew 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.