PUBLIC Law Chapter 386

in chapter 161. Before making a deposit, the Treasurer of State

must consider the rating of the banking institution, trust company,

state or federal savings and loan association or mutual savings

bank on its most recent assessment conducted pursuant to the

federal Community Reinvestment Act, 12 United States Code, Section

2901. The Treasurer of State may transfer funds into and out of

the respective funds in the cash pool as circumstances may require

to meet current obligations and shall request the State Controller

to effect such transfers by journal entry as set forth in section

131-B. When there is excess money in the State Treasury that is

not needed to meet current obligations, the Treasurer of State may

invest, with the concurrence of the State Controller or the

Commissioner of Administrative and Financial Services and with the

consent of the Governor, those amounts in bonds, notes,

certificates of indebtedness or other obligations of the United

States and its agencies and instrumentalities that mature not more

than 36 months from the date of investment or in repurchase

agreements that mature within the succeeding 12 months that are

secured by obligations of the United States and its agencies and

instrumentalities, prime commercial paper, tax-exempt obligations

and corporate bonds rated "AAA" that mature not more than 36 months

from the date of investment, banker's acceptances or so-called "no-

load" shares of any investment company registered under the federal

Investment Company Act of 1940, as amended, that complies with Rule

2a-7 guidelines and maintains a constant share price. 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.

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