§ 118A.02 — Depositories; Investing: Sales, Proceeds, Immunity
Plain-Language Summary
Each local government must designate one or more financial institutions as official depositories for its funds. The governing body may delegate this authority and investment decisions to the treasurer or chief financial officer. Investments can be sold at any time and any gains or losses go back to the fund from which the money came. Officials who act in good faith within the law are not personally liable for investment losses.
118A.02 DEPOSITORIES; INVESTING: SALES, PROCEEDS, IMMUNITY.
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Subdivision 1.Designation; delegation.
(a) The governing body of each government entity shall designate, as a depository of its funds, one or more financial institutions.
(b) The governing body may authorize the treasurer or chief financial officer to:
(1) designate depositories of the funds;
(2) make investments of funds under sections 118A.01 to 118A.06 or other applicable law; or
(3) both designate depositories and make investments as provided in this subdivision. §
Subd. 2.Sale; proceeds; immunity, if loss.
(a) The treasurer or chief financial officer of a government entity may at any time sell obligations purchased pursuant to this section and the money received from such sale, and the interest and profits or loss on such investment shall be credited or charged, as the case may be, to the fund from which the investment was made.
(b) Neither such official nor government entity, nor any other official responsible for the custody of such funds, shall be personally liable for any loss sustained from the deposit or investment of funds in accordance with the provisions of sections 118A.04 and 118A.05.
History:
History: History:
1996 c 399 art 1 s 3