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• <br /> • <br /> Section 118A.05 Contracts and agreements. <br /> Subdivision 1.In addition to other authority granted in sections 1 18A.01 to 1 18A.06, <br /> government entities may enter into contracts and agreements as follows. <br /> Subd. 2. Repurchase agreements. Repurchase agreements consisting of collateral <br /> allowable in section 1 18A.04, and reverse repurchase agreements may be entered into <br /> with any of the following entities: <br /> (1)a financial institution qualified as a"depository"of public funds of the government <br /> entity; <br /> (2)any other financial institution which is a member of the Federal Reserve System and <br /> whose combined capital and surplus equals or exceeds$10,000,000; <br /> (3) a primary reporting dealer in United States government securities to the Federal <br /> Reserve Bank of New York;or <br /> (4) a securities broker-dealer licensed pursuant to chapter 80A, or an affiliate of it, <br /> regulated by the securities and exchange commission and maintaining a combined <br /> capital and surplus of $40,000,000 or more, exclusive of subordinated debt. <br /> Reverse agreements may only be entered into for a period of 90 days or less and only <br /> to meet short-term cash flow needs.In no event may reverse repurchase agreements be <br /> entered into for the purpose of generating cash for investments, except as stated in <br /> Ssubdivision 3. <br /> Subd.3.Securities lending agreements.Securities lending agreements,including custody <br /> agreements,may be entered into with a financial institution meeting the qualifications of <br /> subdivision 2, clause (1) or (2), and having its principal executive office in Minnesota. <br /> Securities lending transactions may be entered into with entities meeting the qualifications <br /> of subdivision 2 and the collateral for such transactions shall be restricted to the securities <br /> described in this section and section l 18A.04. <br /> Subd.4. Minnesota joint powers investment trust. Government entities may enter into <br /> agreements or contracts for: <br /> (1) shares of a Minnesota joint powers investment trust whose investments are <br /> restricted to securities described in this subdivision, subdivision 2, and section <br /> 118A.04; <br /> (2) units of a short-term investment fund established and administered pursuant to <br /> regulation 9 of the Office of the Comptroller of the Currency,in which investments are <br /> restricted to securities described in this section and section 1 I 8A.04; <br /> (3)shares of an investment company which is registered under the Federal Investment <br /> Company Act of 1940 and which holds itself out as a money market fund meeting the <br /> conditions of rule 2a-7 of the Securities and Exchange Commission and is rated in one <br /> of the two highest rating categories for money market funds by at least one nationally <br /> recognized statistical rating organization;or <br /> S <br /> • <br />