9-1407.   Exemption of security for insured portion ofpublic deposits; reciprocal deposit programs.(a) That portion of any deposit of public moneys or funds which isinsuredby the federal deposit insurance corporation, or its successor, need not besecured as provided in this act.

      (b)   Public moneys or funds depositedby a municipal corporation or quasi-municipal corporation through aselected bank,savings and loan association or savings bank which are part of a reciprocaldeposit program inwhich the bank, savings and loan association or savings bank:

      (1)   Receivesreciprocal depositsfrom other participating institutions located in the United States in an amountequal to theamount of funds deposited by the municipal corporation or quasi-municipalcorporation; and

      (2)   for whichthe total cumulative amount of each deposit does not exceedthe maximum deposit insuranceamountfor onedepositor at one financial institution as determined by the federal depositinsurance corporation.

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

      History:   L. 1947, ch. 102, § 69; L. 1982, ch. 52, § 5;L. 1997, ch. 180, § 8;L. 2009, ch. 49, § 1; July 1.