Minnesota Session Laws - 2010, Regular Session

CHAPTER 234--H.F.No. 3065

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 begin its principal executive office deleted text end new 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 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 80A deleted text end , or an affiliate of it, deleted text begin and deleted 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 is new text end regulated by the Securities and Exchange Commission deleted text begin ; provided that deleted 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 is deleted text end new 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.

Presented to the governor April 12, 2010

Signed by the governor April 15, 2010, 11:49 a.m.