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Office of the Revisor of Statutes

    Subdivision 1. Named; bond. Every two years an authority shall name national or state
banks within the state as depositories. Before acting as a depository, a named bank shall give the
authority a bond approved as to form and surety by the authority. The bond must be conditioned
for the safekeeping and prompt repayment of deposits. The amount of bond must be at least equal
to the maximum sums expected to be deposited at any one time.
    Subd. 2. One bank account. An authority may deposit all its money from any source in
one bank account.
    Subd. 3. Default; collateral. When authority funds are deposited by the treasurer in a bonded
depository, the treasurer and the surety on the treasurer's official bond are exempt from liability for
the loss of the deposits because of the failure, bankruptcy, or other act or default of the depository.
However, an authority may accept assignments of collateral from its depository to secure deposits
just as assignments of collateral are permitted by law to secure deposits of the authority's city.
History: 1987 c 291 s 100