12-1675.Investment of public moneys by governmental
subdivisions, units
and entities; conditions and limitations; reciprocal deposit programs.
(a) The governing body of any county, city, township, school district, area
vocational-technical school, community college, firemen's relief association,
community mental
health center, community facility for the mentally retarded or any other
governmental entity, unit or subdivision in the state of Kansas having
authority to receive, hold and expend public moneys or funds may
invest any moneys which are not immediately required for
the purposes for which the moneys were collected or received, and the
investment of which is not subject to or regulated by any other
statute.
(b) Such moneys shall be invested only:
(1) In temporary notes or no-fund warrants issued by such investing
governmental unit;
(2) in time deposit, open
accounts, certificates of deposit or time certificates of deposit with
maturities of not more than two years: (A) In banks, savings and loan
associations and savings banks, which have main or branch offices
located
in such investing governmental unit; or (B) if no main or branch office of a
bank,
savings and loan association or savings bank is
located in such
investing governmental unit, then in banks, savings
and loan
associations and savings banks,
which
have main or branch offices in
the county or counties in which all or part of such investing
governmental unit is located;
(3) in repurchase agreements with: (A) Banks, savings and loan associations
and
savings banks, which have main or branch offices located in such
investing governmental
unit, for
direct obligations of, or obligations that are insured as to principal
and interest by, the United States government or any agency thereof; or
(B)(i) if no main or
branch office
of a bank, savings and loan association or savings bank, is located
in such investing governmental unit; or (ii) if no such
bank, savings and loan association or
savings bank having a main or branch office located in such
investing
governmental unit is
willing to enter into such an agreement with the investing governmental unit at
an 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 such
repurchase agreements may be
entered into with banks, savings and loan associations or savings banks which
have main or branch offices in the county or counties in which all or part
of such investing governmental unit is located; or (C) if no bank, savings and
loan
association or savings
bank, having a main or branch office in such
county
or counties is willing
to enter into such an agreement with the investing governmental unit at
an 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
such repurchase agreements may be entered
into with banks, savings and
loan
associations or savings banks located within this state;
(4) in United States treasury bills or notes with maturities as
the
governing body shall
determine, but not exceeding two years.
Such investment transactions shall only be conducted with banks, savings and
loan associations and
savings banks; the federal
reserve bank of Kansas City,
Missouri;
or with primary government securities dealers which
report to the market report division of the federal reserve bank of New York,
or any broker-dealer engaged in the business of selling government
securities which is registered in compliance with the requirements of
section 15 or 15C of the securities exchange act of 1934 and registered
pursuant to K.S.A. 17-12a401, and amendments thereto;
(5) in the municipal investment pool fund established in
K.S.A. 12-1677a, and amendments thereto;
(6) in the investments authorized and in accordance with the
conditions
prescribed in K.S.A. 12-1677b, and amendments thereto; or
(7) in multiple municipal client investment pools managed by
the trust departments of banks which have main or branch
offices
located in the county or counties where such investing governmental unit
is located or with trust companies incorporated under the laws of this
state which have contracted
to provide trust services under the provisions of K.S.A. 9-2107, and amendments
thereto, with banks which have
main or branch offices located in the county or counties in which such
investing governmental
unit is located. Public moneys invested
under this paragraph shall be secured in the
same manner as provided for under K.S.A. 9-1402, and amendments thereto.
Pooled investments of
public moneys made by trust departments under this paragraph shall be subject
to the same terms, conditions and limitations as are applicable to the
municipal investment pool established
by K.S.A. 12-1677a, and amendments thereto.
(c) The investments authorized in
paragraphs (4), (5), (6) or (7) of subsection (b) shall
be utilized only if
the banks, savings and loan
associations and savings banks eligible for investments authorized in paragraph
(2) of subsection (b), cannot or will not make the
investments authorized in paragraph (2) of subsection (b) available
to
the investing governmental unit at interest rates
equal to or greater than the investment rate, as defined in
subsection (g) of K.S.A. 12-1675a, and amendments thereto.
(d) In selecting a depository pursuant to paragraph (2) of
subsection
(b), if a bank, savings
and loan association or savings bank eligible for an
investment deposit thereunder has an office located
in the investing governmental unit and such financial institution will make
such deposits available to the investing governmental unit at interest rates
equal to or greater than the investment
rate, as defined in subsection (g) of K.S.A. 12-1675a, and amendments
thereto, and such
financial
institution otherwise
qualifies for such deposit,
the investing
governmental unit shall select one or more of such eligible financial
institutions
for deposit of funds pursuant to this section. If no such financial institution
qualifies for such deposits, the investing governmental unit
may select
for such deposits one or more eligible banks, savings and loan associations or
savings banks which have offices in the county or counties in which
all or a part of such investing governmental unit is located which will
make such deposits available to the investing governmental unit at interest
rates
equal to or greater than the investment rate, as defined in subsection (g) of
K.S.A. 12-1675a, and amendments thereto, and which
otherwise qualify
for such deposits.
(e) (1) All security purchases and repurchase agreements shall occur on
a delivery versus payment basis.
(2) All securities, including those acquired by repurchase agreements,
shall be perfected in the name of the investing
governmental unit and shall be delivered to the purchaser or a third-party
custodian which may be the state treasurer.
(f) Public moneys deposited pursuant to subsection (b)(2) of K.S.A
12-1675, and
amendments thereto, by the governing body of any governmental unit listed in
subsection (a)
of K.S.A. 12-1675, and amendments thereto, through a selected bank, savings and
loan
association or savings bank which is 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 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.
12-1675.Investment of public moneys by governmental
subdivisions, units
and entities; conditions and limitations; reciprocal deposit programs.
(a) The governing body of any county, city, township, school district, area
vocational-technical school, community college, firemen's relief association,
community mental
health center, community facility for the mentally retarded or any other
governmental entity, unit or subdivision in the state of Kansas having
authority to receive, hold and expend public moneys or funds may
invest any moneys which are not immediately required for
the purposes for which the moneys were collected or received, and the
investment of which is not subject to or regulated by any other
statute.
(b) Such moneys shall be invested only:
(1) In temporary notes or no-fund warrants issued by such investing
governmental unit;
(2) in time deposit, open
accounts, certificates of deposit or time certificates of deposit with
maturities of not more than two years: (A) In banks, savings and loan
associations and savings banks, which have main or branch offices
located
in such investing governmental unit; or (B) if no main or branch office of a
bank,
savings and loan association or savings bank is
located in such
investing governmental unit, then in banks, savings
and loan
associations and savings banks,
which
have main or branch offices in
the county or counties in which all or part of such investing
governmental unit is located;
(3) in repurchase agreements with: (A) Banks, savings and loan associations
and
savings banks, which have main or branch offices located in such
investing governmental
unit, for
direct obligations of, or obligations that are insured as to principal
and interest by, the United States government or any agency thereof; or
(B)(i) if no main or
branch office
of a bank, savings and loan association or savings bank, is located
in such investing governmental unit; or (ii) if no such
bank, savings and loan association or
savings bank having a main or branch office located in such
investing
governmental unit is
willing to enter into such an agreement with the investing governmental unit at
an 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 such
repurchase agreements may be
entered into with banks, savings and loan associations or savings banks which
have main or branch offices in the county or counties in which all or part
of such investing governmental unit is located; or (C) if no bank, savings and
loan
association or savings
bank, having a main or branch office in such
county
or counties is willing
to enter into such an agreement with the investing governmental unit at
an 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
such repurchase agreements may be entered
into with banks, savings and
loan
associations or savings banks located within this state;
(4) in United States treasury bills or notes with maturities as
the
governing body shall
determine, but not exceeding two years.
Such investment transactions shall only be conducted with banks, savings and
loan associations and
savings banks; the federal
reserve bank of Kansas City,
Missouri;
or with primary government securities dealers which
report to the market report division of the federal reserve bank of New York,
or any broker-dealer engaged in the business of selling government
securities which is registered in compliance with the requirements of
section 15 or 15C of the securities exchange act of 1934 and registered
pursuant to K.S.A. 17-12a401, and amendments thereto;
(5) in the municipal investment pool fund established in
K.S.A. 12-1677a, and amendments thereto;
(6) in the investments authorized and in accordance with the
conditions
prescribed in K.S.A. 12-1677b, and amendments thereto; or
(7) in multiple municipal client investment pools managed by
the trust departments of banks which have main or branch
offices
located in the county or counties where such investing governmental unit
is located or with trust companies incorporated under the laws of this
state which have contracted
to provide trust services under the provisions of K.S.A. 9-2107, and amendments
thereto, with banks which have
main or branch offices located in the county or counties in which such
investing governmental
unit is located. Public moneys invested
under this paragraph shall be secured in the
same manner as provided for under K.S.A. 9-1402, and amendments thereto.
Pooled investments of
public moneys made by trust departments under this paragraph shall be subject
to the same terms, conditions and limitations as are applicable to the
municipal investment pool established
by K.S.A. 12-1677a, and amendments thereto.
(c) The investments authorized in
paragraphs (4), (5), (6) or (7) of subsection (b) shall
be utilized only if
the banks, savings and loan
associations and savings banks eligible for investments authorized in paragraph
(2) of subsection (b), cannot or will not make the
investments authorized in paragraph (2) of subsection (b) available
to
the investing governmental unit at interest rates
equal to or greater than the investment rate, as defined in
subsection (g) of K.S.A. 12-1675a, and amendments thereto.
(d) In selecting a depository pursuant to paragraph (2) of
subsection
(b), if a bank, savings
and loan association or savings bank eligible for an
investment deposit thereunder has an office located
in the investing governmental unit and such financial institution will make
such deposits available to the investing governmental unit at interest rates
equal to or greater than the investment
rate, as defined in subsection (g) of K.S.A. 12-1675a, and amendments
thereto, and such
financial
institution otherwise
qualifies for such deposit,
the investing
governmental unit shall select one or more of such eligible financial
institutions
for deposit of funds pursuant to this section. If no such financial institution
qualifies for such deposits, the investing governmental unit
may select
for such deposits one or more eligible banks, savings and loan associations or
savings banks which have offices in the county or counties in which
all or a part of such investing governmental unit is located which will
make such deposits available to the investing governmental unit at interest
rates
equal to or greater than the investment rate, as defined in subsection (g) of
K.S.A. 12-1675a, and amendments thereto, and which
otherwise qualify
for such deposits.
(e) (1) All security purchases and repurchase agreements shall occur on
a delivery versus payment basis.
(2) All securities, including those acquired by repurchase agreements,
shall be perfected in the name of the investing
governmental unit and shall be delivered to the purchaser or a third-party
custodian which may be the state treasurer.
(f) Public moneys deposited pursuant to subsection (b)(2) of K.S.A
12-1675, and
amendments thereto, by the governing body of any governmental unit listed in
subsection (a)
of K.S.A. 12-1675, and amendments thereto, through a selected bank, savings and
loan
association or savings bank which is 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 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.
12-1675.Investment of public moneys by governmental
subdivisions, units
and entities; conditions and limitations; reciprocal deposit programs.
(a) The governing body of any county, city, township, school district, area
vocational-technical school, community college, firemen's relief association,
community mental
health center, community facility for the mentally retarded or any other
governmental entity, unit or subdivision in the state of Kansas having
authority to receive, hold and expend public moneys or funds may
invest any moneys which are not immediately required for
the purposes for which the moneys were collected or received, and the
investment of which is not subject to or regulated by any other
statute.
(b) Such moneys shall be invested only:
(1) In temporary notes or no-fund warrants issued by such investing
governmental unit;
(2) in time deposit, open
accounts, certificates of deposit or time certificates of deposit with
maturities of not more than two years: (A) In banks, savings and loan
associations and savings banks, which have main or branch offices
located
in such investing governmental unit; or (B) if no main or branch office of a
bank,
savings and loan association or savings bank is
located in such
investing governmental unit, then in banks, savings
and loan
associations and savings banks,
which
have main or branch offices in
the county or counties in which all or part of such investing
governmental unit is located;
(3) in repurchase agreements with: (A) Banks, savings and loan associations
and
savings banks, which have main or branch offices located in such
investing governmental
unit, for
direct obligations of, or obligations that are insured as to principal
and interest by, the United States government or any agency thereof; or
(B)(i) if no main or
branch office
of a bank, savings and loan association or savings bank, is located
in such investing governmental unit; or (ii) if no such
bank, savings and loan association or
savings bank having a main or branch office located in such
investing
governmental unit is
willing to enter into such an agreement with the investing governmental unit at
an 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 such
repurchase agreements may be
entered into with banks, savings and loan associations or savings banks which
have main or branch offices in the county or counties in which all or part
of such investing governmental unit is located; or (C) if no bank, savings and
loan
association or savings
bank, having a main or branch office in such
county
or counties is willing
to enter into such an agreement with the investing governmental unit at
an 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
such repurchase agreements may be entered
into with banks, savings and
loan
associations or savings banks located within this state;
(4) in United States treasury bills or notes with maturities as
the
governing body shall
determine, but not exceeding two years.
Such investment transactions shall only be conducted with banks, savings and
loan associations and
savings banks; the federal
reserve bank of Kansas City,
Missouri;
or with primary government securities dealers which
report to the market report division of the federal reserve bank of New York,
or any broker-dealer engaged in the business of selling government
securities which is registered in compliance with the requirements of
section 15 or 15C of the securities exchange act of 1934 and registered
pursuant to K.S.A. 17-12a401, and amendments thereto;
(5) in the municipal investment pool fund established in
K.S.A. 12-1677a, and amendments thereto;
(6) in the investments authorized and in accordance with the
conditions
prescribed in K.S.A. 12-1677b, and amendments thereto; or
(7) in multiple municipal client investment pools managed by
the trust departments of banks which have main or branch
offices
located in the county or counties where such investing governmental unit
is located or with trust companies incorporated under the laws of this
state which have contracted
to provide trust services under the provisions of K.S.A. 9-2107, and amendments
thereto, with banks which have
main or branch offices located in the county or counties in which such
investing governmental
unit is located. Public moneys invested
under this paragraph shall be secured in the
same manner as provided for under K.S.A. 9-1402, and amendments thereto.
Pooled investments of
public moneys made by trust departments under this paragraph shall be subject
to the same terms, conditions and limitations as are applicable to the
municipal investment pool established
by K.S.A. 12-1677a, and amendments thereto.
(c) The investments authorized in
paragraphs (4), (5), (6) or (7) of subsection (b) shall
be utilized only if
the banks, savings and loan
associations and savings banks eligible for investments authorized in paragraph
(2) of subsection (b), cannot or will not make the
investments authorized in paragraph (2) of subsection (b) available
to
the investing governmental unit at interest rates
equal to or greater than the investment rate, as defined in
subsection (g) of K.S.A. 12-1675a, and amendments thereto.
(d) In selecting a depository pursuant to paragraph (2) of
subsection
(b), if a bank, savings
and loan association or savings bank eligible for an
investment deposit thereunder has an office located
in the investing governmental unit and such financial institution will make
such deposits available to the investing governmental unit at interest rates
equal to or greater than the investment
rate, as defined in subsection (g) of K.S.A. 12-1675a, and amendments
thereto, and such
financial
institution otherwise
qualifies for such deposit,
the investing
governmental unit shall select one or more of such eligible financial
institutions
for deposit of funds pursuant to this section. If no such financial institution
qualifies for such deposits, the investing governmental unit
may select
for such deposits one or more eligible banks, savings and loan associations or
savings banks which have offices in the county or counties in which
all or a part of such investing governmental unit is located which will
make such deposits available to the investing governmental unit at interest
rates
equal to or greater than the investment rate, as defined in subsection (g) of
K.S.A. 12-1675a, and amendments thereto, and which
otherwise qualify
for such deposits.
(e) (1) All security purchases and repurchase agreements shall occur on
a delivery versus payment basis.
(2) All securities, including those acquired by repurchase agreements,
shall be perfected in the name of the investing
governmental unit and shall be delivered to the purchaser or a third-party
custodian which may be the state treasurer.
(f) Public moneys deposited pursuant to subsection (b)(2) of K.S.A
12-1675, and
amendments thereto, by the governing body of any governmental unit listed in
subsection (a)
of K.S.A. 12-1675, and amendments thereto, through a selected bank, savings and
loan
association or savings bank which is 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 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.