9-1407. Exemption of security for insured portion of public deposits; reciprocal deposit programs.
9-1407
9-1407. Exemption of security for insured portion of
public deposits; reciprocal deposit programs.
(a) That portion of any deposit of public moneys or funds which is
insured
by the federal deposit insurance corporation, or its successor, need not be
secured as provided in this act.
(b) Public moneys or funds deposited
by a municipal corporation or quasi-municipal corporation through a
selected bank,
savings and loan association or savings bank which are part of a reciprocal
deposit program in
which the bank, savings and loan association or savings bank:
(1) Receives
reciprocal deposits
from other participating institutions located in the United States in an amount
equal to the
amount of funds deposited by the municipal corporation or quasi-municipal
corporation; and
(2) for which
the total cumulative amount of each deposit does not exceed
the maximum deposit insurance
amount
for one
depositor at one financial institution as determined by the federal deposit
insurance corporation.
Such deposits
shall not be treated as securities
and
need 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.