§ 118A.06 — Safekeeping; Acknowledgements
Plain-Language Summary
Local government investments may be held in safekeeping with a Federal Reserve bank, an authorized bank trust department, a primary federal securities dealer, or a qualifying securities broker-dealer with SIPC insurance. The government entity's ownership of all securities must be confirmed by written acknowledgments that identify each security by issuer, maturity date, interest rate, CUSIP number, or other identifying marks.
118A.06 SAFEKEEPING; ACKNOWLEDGEMENTS.
(a) Investments, contracts, and agreements may be held in safekeeping with:
(1) any Federal Reserve bank;
(2) any bank authorized under the laws of the United States or any state to exercise corporate trust powers, including, but not limited to, the bank from which the investment is purchased;
(3) a primary reporting dealer in United States government securities to the Federal Reserve Bank of New York; or
(4) a securities broker-dealer, or an affiliate of it, that meets the following requirements:
(i) it is registered as a broker-dealer under chapter 80A or is exempt from the registration requirements;
(ii) it is regulated by the Securities and Exchange Commission; and
(iii) it maintains insurance through the Securities Investor Protection Corporation or excess insurance coverage in an amount equal to or greater than the value of the securities held.
(b) The government entity’s ownership of all securities under paragraph (a) must be evidenced by written acknowledgments identifying the securities by the names of the issuers, maturity dates, interest rates, CUSIP number, or other distinguishing marks.
History:
1996 c 399 art 1 s 7; 2010 c 234 s 2
History: History: 1996 c 399 art 1 s 7; 2010 c 234 s 2