1.1                          A bill for an act 
  1.2             relating to commerce; regulating safe deposit 
  1.3             companies; modifying collateral requirements 
  1.4             applicable to depositories of local public funds; 
  1.5             amending Minnesota Statutes 2002, section 55.15; 
  1.6             Minnesota Statutes 2003 Supplement, section 118A.03, 
  1.7             subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 55.15, is 
  1.10  amended to read: 
  1.11     55.15 [APPLICATION.] 
  1.12     This chapter shall not be held or construed as limiting, 
  1.13  restricting, or in any way affecting the operation or management 
  1.14  of safe deposit boxes or vaults, or a safe deposit business, by 
  1.15  any savings bank, bank, credit union, or trust company.  If any 
  1.16  bank, savings bank, credit union, or trust company elects to 
  1.17  transact the business of a safe deposit company under the 
  1.18  provisions of this chapter, it shall so notify the commissioner 
  1.19  of commerce and thereafter the provisions of sections 55.02 and 
  1.20  55.10 to 55.12 shall apply to such safe deposit business and 
  1.21  said bank, savings bank, credit union, or trust company shall 
  1.22  have the benefit thereof.  The provisions of sections 55.03 to 
  1.23  55.08 and the provisions of section 55.095 shall not apply to a 
  1.24  bank, savings bank, credit union, or trust company carrying on 
  1.25  the business of a safe deposit company. 
  1.26     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.1   118A.03, subdivision 2, is amended to read: 
  2.2      Subd. 2.  [IN LIEU OF SURETY BOND.] The following are the 
  2.3   allowable forms of collateral in lieu of a corporate surety bond:
  2.4      (1) United States government treasury bills, treasury 
  2.5   notes, treasury bonds; 
  2.6      (2) issues of United States government agencies and 
  2.7   instrumentalities as quoted by a recognized industry quotation 
  2.8   service available to the government entity; 
  2.9      (3) general obligation securities of any state or local 
  2.10  government with taxing powers which is rated "A" or better by a 
  2.11  national bond rating service, or revenue obligation securities 
  2.12  of any state or local government with taxing powers which is 
  2.13  rated "AA" or better by a national bond rating service; 
  2.14     (4) unrated general obligation securities of a local 
  2.15  government with taxing powers may be pledged as collateral 
  2.16  against funds deposited by that same local government entity; 
  2.17     (5) irrevocable standby letters of credit issued by Federal 
  2.18  Home Loan Banks to a municipality accompanied by written 
  2.19  evidence that the bank's public debt is rated "AA" or better by 
  2.20  Moody's Investors Service, Inc., or Standard & Poor's 
  2.21  Corporation; and 
  2.22     (6) time deposits that are fully insured by the Federal 
  2.23  Deposit Insurance Corporation any federal agency.