06-20-07 FPAC Minutes - Laserfiche WebLink

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• • closure of the depository.If a financial institution closes,all deposits shall be immediately due and payable.It shall not be a default under this subdivision to require prior notice of withdrawal if such notice is required as a condition of withdrawal by applicable federal law or regulation. Subd.7. Safekeeping.All collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank,or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral.The selection shall be approved by the government entity.HIST: 1996 c 399 art 1 s 4 Section 118A.04 Investments. Subdivision 1.Any public funds,not presently needed for other purposes or restricted for other purposes,may be invested in the manner and subject to the conditions provided for in this section. Subd.2. United States securities. Public funds may be invested in governmental bonds, notes, bills, mortgages (excluding high-risk mortgage-backed securities), and other securities, which are direct obligations or are guaranteed or insured issues of the United States,its agencies,its instrumentalities,or organizations created by an act of Congress. Subd.3.State and local securities. Funds may be invested in the following: • (1) any security which is a general obligation of any state or local government with taxing powers which is rated"A"or better by a national bond rating service; (2) any security which is a revenue obligation of any state or local government with taxing powers which is rated"AA"or better by a national bond rating service;and (3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the state of Minnesota and is rated "A" or better by a national bond rating agency. Subd. 4. Commercial papers. Funds may be invested in commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the highest quality category by at least two nationally recognized rating agencies and matures in 270 days or less. Subd.5.Time deposits. Funds may be invested in time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of United States banks. Subd. 6. High-risk mortgage-backed securities. For the purposes of this section and section 1 18A.05,"high-risk mortgage-backed securities"are: (a)interest-only or principal-only mortgage-backed securities;and (b)any mortgage derivative security that: (1)has an expected average life greater than ten years; 3 .