12-1677b.Direct investments by cities, counties and
school districts, when; requirements;
forfeiture of investment rights, when.
(a) The governing body of any city,
county or school district
which has a written investment policy approved by the governing body of such
city, county or school district
and such written investment policy is approved by
the pooled money investment board as provided in
subsection (b) may
invest and reinvest pursuant to the approved investment policy in the following
investments,
as authorized under paragraph (6) of subsection (b) of K.S.A.
12-1675, and
amendments thereto:
(1) Direct obligations of, or obligations that are insured as to principal
and interest by, the United States of America or any agency thereof and
obligations and securities of United States sponsored enterprises which
under federal law may be accepted as security for public funds,
except that such investments shall not be in mortgage-backed securities;
(2) interest-bearing time deposits in any banks, savings and loan
associations and savings banks; or
(3) repurchase agreements with banks,
savings and loan associations and savings banks,
or with a
primary government securities dealer which reports to the market reports
division of the federal reserve bank of New York for direct obligations of, or
obligations that are insured as to principal and interest by, the United States
government or any agency thereof and obligations and securities of United
States government sponsored enterprises which under federal law may be accepted
as security for public funds.
(b) In approving the investment policy of any city, county or
school district, the pooled money investment board shall
require that such policy
addresses liquidity, diversification, safety of principal,
yield, maturity and quality and capability of investment management staff. In
addition, the policy shall provide procedures for compliance with subsection
(c) of K.S.A. 12-1675, and amendments thereto, and a certification from the
investment management staff that those procedures have been followed.
(c) The investment policy of any city,
county or school
district approved by the pooled money
investment board under this section shall be reviewed and approved at least
annually by
such board or when such city, county or school district
makes changes in such investment policy.
On condition of approving the investment policy, the pooled money investment
board shall review the policy to assure that it addresses liquidity,
diversification, safety of principal, yield, maturity and quality and
capability of investment management staff. In addition, the policy shall
provide procedures for compliance with
subsection (c) of K.S.A. 12-1675, and amendments thereto, a certification from
the investment management staff that those procedures have been followed and a
listing of the banks, savings and loan associations and savings banks from
which
the city, county or school district requested bids in the preceding year.
(d) (1) All security purchases shall occur on a delivery versus payment
basis.
(2) All securities shall be perfected in the name of the city, county or
school district and
shall be delivered to the purchaser or a third party custodian which may be the
state treasurer.
(3) Investment transactions shall only be conducted with banks, savings and
loan
associations and
savings banks; 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 which is registered in compliance with the requirements of
section 15C of the securities exchange act of 1934 and registered pursuant to
K.S.A. 17-12a401, and amendments thereto.
(4) The maximum maturity for investments under
subsection (a) shall be four years.
(e) Investments in securities under paragraph (1) of subsection (a) shall
be limited to securities which do not have any more interest rate risk than do
direct United States government obligations of similar maturities. For purposes
of this
subsection, "interest rate risk" means market value changes due to changes in
current interest rates.
(f) A city, county or school district which violates
subsection
(c) or (d) of K.S.A. 12-1675, and amendments thereto, or the
rules and regulations of
the pooled money investment board shall forfeit its rights under this section
for a two year period and shall be reinstated only after a complete review of
its investment policy as provided for in subsection (b).
Such forfeiture shall be determined by the pooled money investment board after
notice and opportunity to be heard in accordance with the Kansas administrative
procedure act.
History: L. 1992, ch. 146, § 2;
L. 1993, ch. 207, § 4;
L. 1996, ch. 254, § 5;
L. 1997, ch. 180, § 17;
L. 2004, ch. 154, § 54;
L. 2009, ch. 77, § 1; Apr. 23.
12-1677b.Direct investments by cities, counties and
school districts, when; requirements;
forfeiture of investment rights, when.
(a) The governing body of any city,
county or school district
which has a written investment policy approved by the governing body of such
city, county or school district
and such written investment policy is approved by
the pooled money investment board as provided in
subsection (b) may
invest and reinvest pursuant to the approved investment policy in the following
investments,
as authorized under paragraph (6) of subsection (b) of K.S.A.
12-1675, and
amendments thereto:
(1) Direct obligations of, or obligations that are insured as to principal
and interest by, the United States of America or any agency thereof and
obligations and securities of United States sponsored enterprises which
under federal law may be accepted as security for public funds,
except that such investments shall not be in mortgage-backed securities;
(2) interest-bearing time deposits in any banks, savings and loan
associations and savings banks; or
(3) repurchase agreements with banks,
savings and loan associations and savings banks,
or with a
primary government securities dealer which reports to the market reports
division of the federal reserve bank of New York for direct obligations of, or
obligations that are insured as to principal and interest by, the United States
government or any agency thereof and obligations and securities of United
States government sponsored enterprises which under federal law may be accepted
as security for public funds.
(b) In approving the investment policy of any city, county or
school district, the pooled money investment board shall
require that such policy
addresses liquidity, diversification, safety of principal,
yield, maturity and quality and capability of investment management staff. In
addition, the policy shall provide procedures for compliance with subsection
(c) of K.S.A. 12-1675, and amendments thereto, and a certification from the
investment management staff that those procedures have been followed.
(c) The investment policy of any city,
county or school
district approved by the pooled money
investment board under this section shall be reviewed and approved at least
annually by
such board or when such city, county or school district
makes changes in such investment policy.
On condition of approving the investment policy, the pooled money investment
board shall review the policy to assure that it addresses liquidity,
diversification, safety of principal, yield, maturity and quality and
capability of investment management staff. In addition, the policy shall
provide procedures for compliance with
subsection (c) of K.S.A. 12-1675, and amendments thereto, a certification from
the investment management staff that those procedures have been followed and a
listing of the banks, savings and loan associations and savings banks from
which
the city, county or school district requested bids in the preceding year.
(d) (1) All security purchases shall occur on a delivery versus payment
basis.
(2) All securities shall be perfected in the name of the city, county or
school district and
shall be delivered to the purchaser or a third party custodian which may be the
state treasurer.
(3) Investment transactions shall only be conducted with banks, savings and
loan
associations and
savings banks; 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 which is registered in compliance with the requirements of
section 15C of the securities exchange act of 1934 and registered pursuant to
K.S.A. 17-12a401, and amendments thereto.
(4) The maximum maturity for investments under
subsection (a) shall be four years.
(e) Investments in securities under paragraph (1) of subsection (a) shall
be limited to securities which do not have any more interest rate risk than do
direct United States government obligations of similar maturities. For purposes
of this
subsection, "interest rate risk" means market value changes due to changes in
current interest rates.
(f) A city, county or school district which violates
subsection
(c) or (d) of K.S.A. 12-1675, and amendments thereto, or the
rules and regulations of
the pooled money investment board shall forfeit its rights under this section
for a two year period and shall be reinstated only after a complete review of
its investment policy as provided for in subsection (b).
Such forfeiture shall be determined by the pooled money investment board after
notice and opportunity to be heard in accordance with the Kansas administrative
procedure act.
History: L. 1992, ch. 146, § 2;
L. 1993, ch. 207, § 4;
L. 1996, ch. 254, § 5;
L. 1997, ch. 180, § 17;
L. 2004, ch. 154, § 54;
L. 2009, ch. 77, § 1; Apr. 23.
12-1677b.Direct investments by cities, counties and
school districts, when; requirements;
forfeiture of investment rights, when.
(a) The governing body of any city,
county or school district
which has a written investment policy approved by the governing body of such
city, county or school district
and such written investment policy is approved by
the pooled money investment board as provided in
subsection (b) may
invest and reinvest pursuant to the approved investment policy in the following
investments,
as authorized under paragraph (6) of subsection (b) of K.S.A.
12-1675, and
amendments thereto:
(1) Direct obligations of, or obligations that are insured as to principal
and interest by, the United States of America or any agency thereof and
obligations and securities of United States sponsored enterprises which
under federal law may be accepted as security for public funds,
except that such investments shall not be in mortgage-backed securities;
(2) interest-bearing time deposits in any banks, savings and loan
associations and savings banks; or
(3) repurchase agreements with banks,
savings and loan associations and savings banks,
or with a
primary government securities dealer which reports to the market reports
division of the federal reserve bank of New York for direct obligations of, or
obligations that are insured as to principal and interest by, the United States
government or any agency thereof and obligations and securities of United
States government sponsored enterprises which under federal law may be accepted
as security for public funds.
(b) In approving the investment policy of any city, county or
school district, the pooled money investment board shall
require that such policy
addresses liquidity, diversification, safety of principal,
yield, maturity and quality and capability of investment management staff. In
addition, the policy shall provide procedures for compliance with subsection
(c) of K.S.A. 12-1675, and amendments thereto, and a certification from the
investment management staff that those procedures have been followed.
(c) The investment policy of any city,
county or school
district approved by the pooled money
investment board under this section shall be reviewed and approved at least
annually by
such board or when such city, county or school district
makes changes in such investment policy.
On condition of approving the investment policy, the pooled money investment
board shall review the policy to assure that it addresses liquidity,
diversification, safety of principal, yield, maturity and quality and
capability of investment management staff. In addition, the policy shall
provide procedures for compliance with
subsection (c) of K.S.A. 12-1675, and amendments thereto, a certification from
the investment management staff that those procedures have been followed and a
listing of the banks, savings and loan associations and savings banks from
which
the city, county or school district requested bids in the preceding year.
(d) (1) All security purchases shall occur on a delivery versus payment
basis.
(2) All securities shall be perfected in the name of the city, county or
school district and
shall be delivered to the purchaser or a third party custodian which may be the
state treasurer.
(3) Investment transactions shall only be conducted with banks, savings and
loan
associations and
savings banks; 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 which is registered in compliance with the requirements of
section 15C of the securities exchange act of 1934 and registered pursuant to
K.S.A. 17-12a401, and amendments thereto.
(4) The maximum maturity for investments under
subsection (a) shall be four years.
(e) Investments in securities under paragraph (1) of subsection (a) shall
be limited to securities which do not have any more interest rate risk than do
direct United States government obligations of similar maturities. For purposes
of this
subsection, "interest rate risk" means market value changes due to changes in
current interest rates.
(f) A city, county or school district which violates
subsection
(c) or (d) of K.S.A. 12-1675, and amendments thereto, or the
rules and regulations of
the pooled money investment board shall forfeit its rights under this section
for a two year period and shall be reinstated only after a complete review of
its investment policy as provided for in subsection (b).
Such forfeiture shall be determined by the pooled money investment board after
notice and opportunity to be heard in accordance with the Kansas administrative
procedure act.
History: L. 1992, ch. 146, § 2;
L. 1993, ch. 207, § 4;
L. 1996, ch. 254, § 5;
L. 1997, ch. 180, § 17;
L. 2004, ch. 154, § 54;
L. 2009, ch. 77, § 1; Apr. 23.