SF 1826

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to public funds; authorizing the use of 
  1.3             certain letters of credit as collateral to secure 
  1.4             deposits of public funds; amending Minnesota Statutes 
  1.5             1994, section 118.01, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 118.01, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  Any bank, trust company or thrift 
  1.10  institution authorized to do business in this state may, in lieu 
  1.11  of the corporate or personal surety bond required to be 
  1.12  furnished to secure deposited funds, deposit with the custodian 
  1.13  of the funds as collateral security:  (1) certificates of 
  1.14  deposit that are fully insured by the Federal Deposit Insurance 
  1.15  Corporation or the Federal Savings and Loan Insurance 
  1.16  Corporation; (2) notes secured by first mortgages of future 
  1.17  maturity, upon which interest is not past due, on improved real 
  1.18  estate free from delinquent taxes, within the county wherein the 
  1.19  depository is located, or within counties immediately adjoining 
  1.20  the county in the state of Minnesota; (3) obligations which are 
  1.21  legally authorized investments for debt service funds under 
  1.22  section 475.66, subdivision 3; and (4) qualified state or local 
  1.23  government obligations acceptable to the treasurer or chief 
  1.24  financial officer.  Qualified obligations must be general 
  1.25  obligations rated "A" or better by Moody's Investors Service, 
  2.1   Inc. or Standard & Poor's Corporation; and (5) nontransferable 
  2.2   letters of credit upon which the payment of principal and 
  2.3   interest is fully secured or guaranteed by the United States of 
  2.4   America or an agency or instrumentality of the United States of 
  2.5   America. 
  2.6      Sec. 2.  [EFFECTIVE DATE.] 
  2.7      Section 1 is effective the day following final enactment.