Bill Text: MN SF904 | 2011-2012 | 87th Legislature | Introduced
Bill Title: State depositories bond requirements modifications
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2011-05-04 - HF substituted on General Orders HF1117 [SF904 Detail]
Download: Minnesota-2011-SF904-Introduced.html
1.2relating to state government; changing bond requirements for state depositories;
1.3amending Minnesota Statutes 2010, section 9.031, subdivisions 2, 5.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 9.031, subdivision 2, is amended to read:
1.6 Subd. 2.Bond Deposits exceeding applicable deposit insurance coverage. Except
1.7as provided in subdivision 3, a depository shall furnish and file with the commissioner of
1.8management and budget a corporate surety bond to secure state funds deposited with it.
1.9To the extent that state funds on deposit at the close of a depository's banking day exceed
1.10applicable deposit insurance coverage, the state shall require the depository to furnish and
1.11file with the commissioner of management and budget a corporate security bond to secure
1.12state funds deposited with it, or to deposit with the commissioner collateral security as
1.13provided in subdivision 3. The Executive Council shall approve the bond.
1.14The Executive Council shall not approve any depository bond until when the council
1.15is fully satisfied that the bond is in proper form, the securities sufficient, the depository
1.16prosperous and financially sound, and the capital stock claimed by it fully paid up and not
1.17impaired. Each depository bond shall provide that during the time the bond is in force the
1.18depository will pay all the state funds deposited with it to the commissioner of management
1.19and budget, free of exchange, at any place in the state designated by the commissioner
1.20of management and budget. If the deposit is a time deposit it shall be paid, together
1.21with interest, only when due. At any time the Executive Council or the commissioner of
1.22management and budget may require a new or additional bond from any depository.
1.23 Sec. 2. Minnesota Statutes 2010, section 9.031, subdivision 5, is amended to read:
2.1 Subd. 5. Maximum deposit. The Executive Council shall prescribe the maximum
2.2amount that may be deposited in each depository. In no case shall the amount of the
2.3deposit in excess of applicable deposit insurance coverage exceed:
2.4(1) the penalty on the bonds;
2.5(2) 90 percent of the market value of the bonds; or
2.6(3) the penalty on the bonds plus 90 percent of the market value of the collateral, if
2.7both are furnished.
1.3amending Minnesota Statutes 2010, section 9.031, subdivisions 2, 5.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 9.031, subdivision 2, is amended to read:
1.6 Subd. 2.
1.7
1.8
1.9To the extent that state funds on deposit at the close of a depository's banking day exceed
1.10applicable deposit insurance coverage, the state shall require the depository to furnish and
1.11file with the commissioner of management and budget a corporate security bond to secure
1.12state funds deposited with it, or to deposit with the commissioner collateral security as
1.13provided in subdivision 3. The Executive Council shall approve the bond
1.14
1.15is fully satisfied that the bond is in proper form, the securities sufficient, the depository
1.16prosperous and financially sound, and the capital stock claimed by it fully paid up and not
1.17impaired. Each depository bond shall provide that during the time the bond is in force the
1.18depository will pay all the state funds deposited with it to the commissioner of management
1.19and budget, free of exchange, at any place in the state designated by the commissioner
1.20of management and budget. If the deposit is a time deposit it shall be paid, together
1.21with interest, only when due. At any time the Executive Council or the commissioner of
1.22management and budget may require a new or additional bond from any depository.
1.23 Sec. 2. Minnesota Statutes 2010, section 9.031, subdivision 5, is amended to read:
2.1 Subd. 5. Maximum deposit. The Executive Council shall prescribe the maximum
2.2amount that may be deposited in each depository. In no case shall the amount of the
2.3deposit in excess of applicable deposit insurance coverage exceed:
2.4(1) the penalty on the bonds;
2.5(2) 90 percent of the market value of the bonds; or
2.6(3) the penalty on the bonds plus 90 percent of the market value of the collateral, if
2.7both are furnished.
