Bill Text: MN SF2759 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Local public funds negotiable certificates of deposit investment authority
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-03-19 - Referred to State and Local Government [SF2759 Detail]
Download: Minnesota-2013-SF2759-Introduced.html
1.2relating to investment of public funds; authorizing investment in certain
1.3negotiated certificates of deposit;amending Minnesota Statutes 2012, section
1.4118A.04, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 118A.04, is amended by adding a
1.7subdivision to read:
1.8 Subd. 5a. Negotiable certificates of deposit. Funds may be invested in negotiable
1.9certificates of deposit or other evidences of deposit, with a remaining maturity of three
1.10years or less, issued by a nationally chartered or state-chartered bank, a federal or state
1.11savings and loan association, or a state-licensed branch of a foreign bank, except that
1.12for obligations with a maturity of one year or less, the debt obligations of the issuing
1.13institution or its parent must be rated in the top short-term rating category by at least
1.14two nationally recognized statistical ratings organizations and for obligations with a
1.15maturity in excess of one year, the senior debt obligations of the issuing institution or its
1.16parent must be rated at least "A" or its equivalent by at least two nationally recognized
1.17statistical ratings organizations. Investments in these instruments are not subject to the
1.18collateralization requirements of section 118A.03.
1.19 Sec. 2. EFFECTIVE DATE.
1.20Section 1 is effective the day following final enactment.
1.3negotiated certificates of deposit;amending Minnesota Statutes 2012, section
1.4118A.04, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 118A.04, is amended by adding a
1.7subdivision to read:
1.8 Subd. 5a. Negotiable certificates of deposit. Funds may be invested in negotiable
1.9certificates of deposit or other evidences of deposit, with a remaining maturity of three
1.10years or less, issued by a nationally chartered or state-chartered bank, a federal or state
1.11savings and loan association, or a state-licensed branch of a foreign bank, except that
1.12for obligations with a maturity of one year or less, the debt obligations of the issuing
1.13institution or its parent must be rated in the top short-term rating category by at least
1.14two nationally recognized statistical ratings organizations and for obligations with a
1.15maturity in excess of one year, the senior debt obligations of the issuing institution or its
1.16parent must be rated at least "A" or its equivalent by at least two nationally recognized
1.17statistical ratings organizations. Investments in these instruments are not subject to the
1.18collateralization requirements of section 118A.03.
1.19 Sec. 2. EFFECTIVE DATE.
1.20Section 1 is effective the day following final enactment.
