SF 2522

as introduced - 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), clause 
  1.11  (2), the State Board of Investment may invest in certificates of 
  1.12  deposit issued by United States banks and savings institutions 
  1.13  whose most recent rating under the Federal Community 
  1.14  Reinvestment Act is "outstanding."  For investments under this 
  1.15  section, the State Board of Investment must require collateral 
  1.16  as required by Minnesota Statutes, section 118A.03, except that 
  1.17  the total amount of collateral required must not exceed the 
  1.18  amount on deposit with the bank or savings institution.  The 
  1.19  state board may not have total outstanding investments, at any 
  1.20  one time, of more than $50,000,000 under authority of this 
  1.21  section.  This limit does not apply to investments that meet the 
  1.22  criteria in Minnesota Statutes, section 11A.24, subdivision 4, 
  1.23  paragraph (a), clause (2).  If the state board invests in 
  1.24  certificates of deposit under authority of this section in an 
  1.25  institution rated "outstanding," and the institution later 
  1.26  receives a different rating, the state board may retain the 
  2.1   investment for the term of the certificate of deposit, but may 
  2.2   not renew the certificate of deposit or purchase new 
  2.3   certificates of deposit from the institution under authority of 
  2.4   this paragraph until the institution receives an "outstanding" 
  2.5   rating.  This section expires June 30, 2006. 
  2.6      [EFFECTIVE DATE.] This section is effective the day 
  2.7   following final enactment.