language to be deleted (2) new language
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:
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 its principal executive office 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.
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 having its principal executive office in Minnesota, licensed under chapter 80A, or an affiliate of it, and
regulated by the Securities and Exchange Commission; provided that
The government entity's ownership of all securities is 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.