Agenda - Council - 10/22/1996 - Laserfiche WebLink

Home

i 118.0~)5 DEPOSITORIES OF PUBLIC FUNDS CHAPTER 118 DEPOSITORIES OF PUBLIC FUNDS 1294 118.005 Designation, protection of deposit. 118,l 1 :118.01 Depository bonds and collateral, ) 18.02 Effecl of existing conlracts. :1 [8.08 Ccrtain banks may be depositories. 118.12 118,09 Treasurer to be reimbursed for 118.13 loses. 118.14 ll8.10 Depositories insured under federal act excused from giving security lo 118.16 exllelll of insurance coverage. Limitation of deposits not dependent on capital and surplus; application. Investment of to~rn fund~. Deposit of securities. Exclusion of invested funds from bond coverage. Failure lo pay ~Jfies :md u~e taxes. 118.005 DESIGNATION, PROTECWION OF DEPOSIT. Subdivision 1. The governing body of every municipality, as defined in section 118.01, which has the power to receive and disburse funds, shall designate as a deposi~ tory of the funds such national, insured state banks or thrift institutions as defined in ~ction 51A.02, subdivision 54, as it may deem proper. The governing body may autho- rize the treasurer or chief financial officer to exercise the powers of the governing body in designating a depository of the funds. For purposes of this chapter, a credit union is a thrift institution. Subd. 2. In the event the bank or insured thrift institution selected as a depository if a member of the federal deposit insurance corporation or the federal savings and loan insurance corporation, or is insured by the national credit union administration, the chstodian of the funds may deposit an amount not to exceed the maximum amount of insurance on the deposits. In the event it is desired to deposit a greater amount in- any bank or thrift institution prior to the deposit the governing body or officer shall require the bank or thrift institution to furnish a bond, executed by a corporate surety company afthorized to do business in the state in a sum at least equal to the estimated sum to be deposited in excess of the maximum amount of insurance. In lieu of the bond, the depository shall assign to the custodian of the funds collateral security in accordance Mth section 118.01. History: 1969 c 294 s I; 1978 c 747 s 4; J985 c 239 s 1; 1985 c 292 s & 1988 c 666 s 74 118.01 DEPOSITORY BONDS AND COI_J_,ATERAL. Subdivision 1. Any bank, trust company or thrift institution authorized to do busi- ness in this state may, in lieu of the corporate or personal surety bond required to be furnished to secure deposited funds, deposit with the custodian of the funds as collat- eral security: (1) certificates of deposit that are fully insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation; (2) noies secured by first mortgages of future maturity, upon which interest is not past due, on: improved real estate free from delinquent taxes, within the county wherein the depository is located, or within counties immediately adjoining the county in the st,7. te of Minnesota; (3) obligations which are legally authorized investments for debt set-race funds under section 475.66, subdivision 3; and (4) qualified state or local govemme,t obligations acceptable to the treasurer or chief financial officer. Qualified obligations must be general obligations rated "A' or better by Moody's Investors Service, Inc. or Standard & Poor's Corporation. Subd. 2. Except for notes secured by first mortgages of future maturity, the total in amount of the collateral computed at its market value shall be at least ten perc~t more than the amount on deposit at the close of the business day, in excess of any insured portion, which would be permitted ifa corporate or personal surety bond werr furnished. The total amount of collateral consisting of notes secured by first rnortgag~ of future maturity computed at its market value shall be at least 40 percent more /(,7 or ot tract term.~ I: 118.0 118.0, 118.0'. 118.0t 118.07