LD 1319
pg. 298
Page 297 of 423 An Act Making Unified Appropriations and Allocations for the Expenditures of St... Page 299 of 423
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LR 2000
Item 1
 
United States. The Treasurer of State may participate in the
securities loan market by loaning state-owned bonds, notes or
certificates of indebtedness of the Federal Government, only if
loans are fully collateralized by treasury bills or cash. The
Treasurer of State shall seek competitive bids for investments
except when, after a reasonable investigation, it appears that
an investment of the desired maturity is procurable by the State
from only one source. Interest earned on those investments of
money must be credited to the respective funds, except that
interest earned on investments of special revenue funds must be
credited to the General Fund of the State. Effective July 1,
1995, interest earned on investments of the Highway Fund must be
credited to the Highway Fund. Interest earned on funds of the
Department of Inland Fisheries and Wildlife must be credited to
the General Fund. Interest earned on funds of the Baxter State
Park Authority must be credited to the Baxter State Park Fund.
This section does not prevent the deposit for safekeeping or
custodial care of the securities of the several funds of the
State in banks or safe deposit companies in this State or any
other state, nor the deposit of state funds required by the
terms of custodial contracts or agreements negotiated in
accordance with the laws of this State. All custodial contracts
and agreements are subject to the approval of the Governor.

 
The Treasurer of State may accept component unit and
nonstate funds into custody and invest those funds along with
excess state funds as prescribed in this section.

 
For the purpose of this section only, tax-exempt obligations
and securities are limited exclusively to tax-exempt
commercial paper and tax-exempt bonds maturing in less than 2
years.

 
No sum exceeding an amount equal to 25% of the capital,
surplus and undivided profits of any trust company or national
bank or a sum exceeding an amount equal to 25% of the reserve
fund and undivided profit account of a mutual savings bank or
state or federal savings and loan associations shall may be on
deposit therein at any one time. The restriction shall does
not apply to deposits subject to immediate withdrawal
available to meet the payment of any bonded debts or interest
or to pay current bills or expenses of the State. The
restriction shall does not apply to deposits which that are
secured by the pledge of certain securities as collateral, nor
to deposits fully covered by insurance. Such collateral shall
must be in an amount equal to such deposit. The Treasurer of
State may require, in the discretion of the Treasurer of
State, collateralization or insurance for the full amount of
any deposit of public funds, whether held by an institution
permitted under this section or
by a vendor contracted to collect or disburse public funds.
The value of the securities so pledged shall must be
determined by

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