§38-2  Authorized; conditions.  (a)  Allmoneys in the state treasury may be deposited by the director to the credit ofthe State in any depository which the director, with the approval of thegovernor, may select, pursuant to this section, and any sums so deposited shallbe deemed to be in the state treasury; provided that the depository in whichthe money is deposited furnish security as hereinafter provided.  In selectinga depository the class of security offered shall be considered as the basis ofselection and due regard shall be given to a depository doing business in theState.

(b)  No more than forty per cent of theaggregate amount of moneys of the State available for deposit and on deposit inthe state treasury may be deposited in depositories without the State.

(c)  No more than sixty per cent of theaggregate amount of moneys of the State available for deposit and on deposit inthe state treasury may be deposited in any one depository; provided that if theyield offered by any one depository in the State is greater than the yieldoffered by other depositories in the State, then, consistent with the safetyand liquidity of such moneys, more than sixty per cent of the aggregate amountof moneys available for deposit and on deposit in the stated treasury may bedeposited in such depository within the State offering a higher yield.

(d)  The director shall consider the beneficialeffects to the State of using depositories within the State, as well as thesafety and liquidity of the sums to be deposited in the depository and theyield offered by the depository prior to the selection of the depository.

(e)  In case of loan fund money for which thereis no immediate need, or expenditures from which would not be made for at leastthree months, the director may place these funds on time deposit on such termsand at such rates of interest as may be allowed by a depository to otherdepositors.

(f)  All deposits of money, except timedeposits, shall be paid upon demand on checks signed by the director and countersignedby the comptroller, or by the payment of a certificate of deposit issued by thedepository, which certificate shall be endorsed by the payee named therein, aswell as by the comptroller, or by preauthorized automatic transfer of fundsbetween transaction accounts held within the same depository.  Transactionaccounts, as defined in Regulation D of the Federal Reserve System, asauthorized by Section 19 (12 U.S.C. 461 et seq.) of the Federal Reserve Act,includes all checking accounts, both demand and interest bearing.  Eachdepository shall at the end of every month render to the director a statement,in duplicate, for each of the funds of the State, showing the daily balances onopen commercial account which were held by it during the month.  The dulyauthorized representatives of any depository shall at all times during officehours have access to the securities deposited by the depository to secure thedeposits of the State for the purpose of examining the same and removing thecoupons that may have matured, the examination to be made in the presence ofthe director or the director's representative. [L 1970, c 51, pt of §1; am L1980, c 229, §1; gen ch 1985; am L 1988, c 78, §3; am L 1994, c 21, §1]

 

Attorney General Opinions

 

  Gives director of finance broad authority to deposit statemoneys.  Att. Gen. Op. 85-22.