12-1675.   Investment of public moneys by governmentalsubdivisions, unitsand entities; conditions and limitations; reciprocal deposit programs.(a) The governing body of any county, city, township, school district, areavocational-technical school, community college, firemen's relief association,community mentalhealth center, community facility for the mentally retarded or any othergovernmental entity, unit or subdivision in the state of Kansas havingauthority to receive, hold and expend public moneys or funds mayinvest any moneys which are not immediately required forthe purposes for which the moneys were collected or received, and theinvestment of which is not subject to or regulated by any otherstatute.

      (b)   Such moneys shall be invested only:

      (1)   In temporary notes or no-fund warrants issued by such investinggovernmental unit;

      (2)   in time deposit, openaccounts, certificates of deposit or time certificates of deposit withmaturities of not more than two years: (A) In banks, savings and loanassociations and savings banks, which have main or branch officeslocatedin such investing governmental unit; or (B) if no main or branch office of abank,savings and loan association or savings bank islocated in suchinvesting governmental unit, then in banks, savingsand loanassociations and savings banks,whichhave main or branch offices inthe county or counties in which all or part of such investinggovernmental unit is located;

      (3)   in repurchase agreements with: (A) Banks, savings and loan associationsandsavings banks, which have main or branch offices located in suchinvesting governmentalunit, fordirect obligations of, or obligations that are insured as to principaland interest by, the United States government or any agency thereof; or(B)(i) if no main orbranch officeof a bank, savings and loan association or savings bank, is locatedin such investing governmental unit; or (ii) if no suchbank, savings and loan association orsavings bank having a main or branch office located in suchinvestinggovernmental unit iswilling to enter into such an agreement with the investing governmental unit atan interest rate equal to or greater than the investment rate,as defined in subsection (g) of K.S.A. 12-1675a, and amendments thereto,then suchrepurchase agreements may beentered into with banks, savings and loan associations or savings banks whichhave main or branch offices in the county or counties in which all or partof such investing governmental unit is located; or (C) if no bank, savings andloanassociation or savingsbank, having a main or branch office in suchcountyor counties is willingto enter into such an agreement with the investing governmental unit atan interest rate equal to or greater than the investment rate, as definedin subsection (g) ofK.S.A. 12-1675a, and amendments thereto, thensuch repurchase agreements may be enteredinto with banks, savings andloanassociations or savings banks located within this state;

      (4)   in United States treasury bills or notes with maturities asthegoverning body shalldetermine, but not exceeding two years.Such investment transactions shall only be conducted with banks, savings andloan associations andsavings banks; the federalreserve bank of Kansas City,Missouri;or with primary government securities dealers whichreport to the market report division of the federal reserve bank of New York,or any broker-dealer engaged in the business of selling governmentsecurities which is registered in compliance with the requirements ofsection 15 or 15C of the securities exchange act of 1934 and registeredpursuant to K.S.A. 17-12a401, and amendments thereto;

      (5)   in the municipal investment pool fund established inK.S.A. 12-1677a, and amendments thereto;

      (6)   in the investments authorized and in accordance with theconditionsprescribed in K.S.A. 12-1677b, and amendments thereto; or

      (7)   in multiple municipal client investment pools managed bythe trust departments of banks which have main or branchofficeslocated in the county or counties where such investing governmental unitis located or with trust companies incorporated under the laws of thisstate which have contractedto provide trust services under the provisions of K.S.A. 9-2107, and amendmentsthereto, with banks which havemain or branch offices located in the county or counties in which suchinvesting governmentalunit is located. Public moneys investedunder this paragraph shall be secured in thesame manner as provided for under K.S.A. 9-1402, and amendments thereto.Pooled investments ofpublic moneys made by trust departments under this paragraph shall be subjectto the same terms, conditions and limitations as are applicable to themunicipal investment pool establishedby K.S.A. 12-1677a, and amendments thereto.

      (c)   The investments authorized inparagraphs (4), (5), (6) or (7) of subsection (b) shallbe utilized only ifthe banks, savings and loanassociations and savings banks eligible for investments authorized in paragraph(2) of subsection (b), cannot or will not make theinvestments authorized in paragraph (2) of subsection (b) availabletothe investing governmental unit at interest ratesequal to or greater than the investment rate, as defined insubsection (g) of K.S.A. 12-1675a, and amendments thereto.

      (d)   In selecting a depository pursuant to paragraph (2) ofsubsection(b), if a bank, savingsand loan association or savings bank eligible for aninvestment deposit thereunder has an office locatedin the investing governmental unit and such financial institution will makesuch deposits available to the investing governmental unit at interest ratesequal to or greater than the investmentrate, as defined in subsection (g) of K.S.A. 12-1675a, and amendmentsthereto, and suchfinancialinstitution otherwisequalifies for such deposit,the investinggovernmental unit shall select one or more of such eligible financialinstitutionsfor deposit of funds pursuant to this section. If no such financial institutionqualifies for such deposits, the investing governmental unitmay selectfor such deposits one or more eligible banks, savings and loan associations orsavings banks which have offices in the county or counties in whichall or a part of such investing governmental unit is located which willmake such deposits available to the investing governmental unit at interestratesequal to or greater than the investment rate, as defined in subsection (g) ofK.S.A. 12-1675a, and amendments thereto, and whichotherwise qualifyfor such deposits.

      (e) (1)   All security purchases and repurchase agreements shall occur ona delivery versus payment basis.

      (2)   All securities, including those acquired by repurchase agreements,shall be perfected in the name of the investinggovernmental unit and shall be delivered to the purchaser or a third-partycustodian which may be the state treasurer.

      (f)   Public moneys deposited pursuant to subsection (b)(2) of K.S.A12-1675, andamendments thereto, by the governing body of any governmental unit listed insubsection (a)of K.S.A. 12-1675, and amendments thereto, through a selected bank, savings andloanassociation or savings bank which is part of a reciprocal deposit program inwhich the bank,savings and loan association or savings bank:

      (1)   Receives reciprocal deposits from other participating institutionslocated in the UnitedStates in an amount equal to the amount of funds deposited by the municipalcorporation orquasi-municipal corporation; and

      (2)   for whichthe total cumulative amount of each deposit does not exceedthe maximum deposit insuranceamount forone depositor at one financial institution as determined by the federal depositinsurancecorporation.

      Such depositsshall not be treated as securitiesandneed not be secured as provided in this or any other act.

      History:   L. 1968, ch. 217, § 1; L. 1969, ch. 80, § 1; L.1973,ch. 63, § 6; L. 1975, ch. 68, § 1; L. 1976, ch. 79, § 2;L. 1977,ch. 55, § 1; L. 1982, ch. 52, § 6; L. 1983, ch. 47, § 7;L. 1986, ch. 76, § 7; L. 1989, ch. 48, § 66;L. 1992, ch. 146, § 3;L. 1993, ch. 207, § 2;L. 1994, ch. 104, § 2;L. 1997, ch. 180, § 14;L. 2004, ch. 154, § 53;L. 2006, ch. 57, § 3;L. 2009, ch. 49, § 2; July 1.