Investment policy required--time and demanddeposits--investments--interest rates.
30.260. 1. The state treasurer shall prepare, maintain and adhere toa written investment policy which shall include an asset allocation planwhich limits the total amount of state moneys which may be invested in anyparticular investment authorized by section 15, article IV of the MissouriConstitution. Such asset allocation plan shall also set diversificationlimits, as applicable, which shall include a restriction limiting the totalamount of time deposits of state moneys, not including linked deposits,placed with any one single banking institution to be no greater than tenpercent of all time deposits of state moneys. The state treasurer shallpresent a copy of such policy to the governor, commissioner ofadministration, state auditor and general assembly at the commencement ofeach regular session of the general assembly or at any time the writteninvestment policy is amended.
2. The state treasurer shall determine by the exercise of thetreasurer's best judgment the amount of state moneys that are not neededfor current operating expenses of the state government and shall keep ondemand deposit in banking institutions in this state selected by thetreasurer and approved by the governor and state auditor the amount ofstate moneys which the treasurer has so determined are needed for currentoperating expenses of the state government and disburse the same asauthorized by law.
3. Within the parameters of the state treasurer's written investmentpolicy, the state treasurer shall place the state moneys which thetreasurer has determined are not needed for current operations of the stategovernment on time deposit drawing interest in banking institutions in thisstate selected by the treasurer and approved by the governor and the stateauditor, or place them outright or, if applicable, by repurchase agreementin obligations described in section 15, article IV, Constitution ofMissouri, as the treasurer in the exercise of the treasurer's best judgmentdetermines to be in the best overall interest of the people of the state ofMissouri, giving due consideration to:
(1) The preservation of such state moneys;
(2) The benefits to the economy and welfare of the people of Missouriwhen such state money is invested in banking institutions in this statethat, in turn, provide additional loans and investments in the Missourieconomy and generate state taxes from such initial investments and theloans and investments created by the banking institutions, compared to theremoval or withholding from banking institutions in the state of all orsome such state moneys and investing same in obligations authorized insection 15, article IV of the Missouri Constitution;
(3) The liquidity needs of the state;
(4) The aggregate return in earnings and taxes on the deposits andthe investment to be derived therefrom; and
(5) All other factors which to the treasurer as a prudent statetreasurer seem to be relevant to the general public welfare in the light ofthe circumstances at the time prevailing. The state treasurer may alsoplace state moneys which are determined not needed for current operationsof the state government in linked deposits as provided in sections 30.750to 30.767.
4. Except for state moneys deposited in linked deposits as providedin sections 30.750 to 30.860, the rate of interest payable by all bankinginstitutions on time deposits of state moneys shall be set undersubdivisions (1) to (5) of this subsection and subsections 6 and 7 of thissection. The rate shall never exceed the maximum rate of interest which byfederal law or regulation a bank which is a member of the Federal ReserveSystem may from time to time pay on a time deposit of the same size andmaturity. The rate of interest payable by all banking institutions on timedeposits of state moneys is as follows:
(1) Beginning January 1, 2010, the rate of interest payable by abanking institution on up to seven million dollars of time deposits ofstate moneys shall be the same as the average rate paid during the weeknext preceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than seven million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of sevenmillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(2) Beginning January 1, 2011, the rate of interest payable by abanking institution on up to five million dollars of time deposits of statemoneys shall be the same as the average rate paid during the week nextpreceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than five million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of fivemillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(3) Beginning January 1, 2012, the rate of interest payable by abanking institution on up to three million dollars of time deposits ofstate moneys shall be the same as the average rate paid during the weeknext preceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than three million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of threemillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(4) Beginning January 1, 2013, the rate of interest payable by abanking institution on up to one million dollars of time deposits of statemoneys shall be the same as the average rate paid during the week nextpreceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than one million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of onemillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(5) Beginning January 1, 2014, the rate of interest payable by abanking institution on all time deposits of state moneys shall be set atthe market rate as determined in subsection 6 of this section.
5. Notwithstanding subdivisions (1) to (5) of subsection 4 of thissection, for any new time deposits of state moneys placed after January 1,2010, with a term longer than eighteen months, the rate of interest payableby a banking institution shall be set at the market rate as determined insubsection 6 of this section.
6. Market rate shall be determined no less frequently than once amonth by the director of investments in the office of state treasurer. Theprocess for determining a market rate shall include due consideration ofprevailing rates offered for certificates of deposit by well-capitalizedMissouri financial institutions, the advance rate established by theFederal Home Loan Bank of Des Moines for member institutions and the costsof collateralization, as well as an evaluation of the credit riskassociated with other authorized securities under section 15, article IV,of the Missouri Constitution. Banking institutions may also offer a higherrate than the market rate for any time deposit placed with the statetreasurer in excess of the total amount of state moneys set at the UnitedStates of America treasury securities maturing and becoming payable closestto the time of termination of the deposit indicated in subdivisions (1) to(5) of subsection 4 of this section.
7. Within the parameters of the state treasurer's written investmentpolicy, the state treasurer may subscribe for or purchase outright or byrepurchase agreement investments of the character described in subsection 3of this section which the treasurer, in the exercise of the treasurer'sbest judgment, believes to be the best for investment of state moneys atthe time and in payment therefor may withdraw moneys from any bank account,demand or time, maintained by the treasurer without having any supportingwarrant of the commissioner of administration. The state treasurer may bidon subscriptions for such obligations in accordance with the treasurer'sbest judgment. The state treasurer shall provide for the safekeeping ofall such obligations so acquired in the same manner that securities pledgedto secure the repayment of state moneys deposited in banking institutionsare kept by the treasurer pursuant to law. The state treasurer may holdany such obligation so acquired by the treasurer until its maturity orprior thereto may sell the same outright or by reverse repurchase agreementprovided the state's security interest in the underlying security isperfected or temporarily exchange such obligation for cash or otherauthorized securities of at least equal market value with no maturity morethan one year beyond the maturity of any of the traded obligations, for anegotiated fee as the treasurer, in the exercise of the treasurer's bestjudgment, deems necessary or advisable for the best interest of the peopleof the state of Missouri in the light of the circumstances at the timeprevailing. The state treasurer may pay all costs and expenses reasonablyincurred by the treasurer in connection with the subscription, purchase,sale, collection, safekeeping or delivery of all such obligations at anytime acquired by the treasurer.
8. As used in this chapter, except as more particularly specified insection 30.270, obligations of the United States shall include securitiesof the United States Treasury, and United States agencies orinstrumentalities as described in section 15, article IV, Constitution ofMissouri. The word "temporarily" as used in this section shall mean nomore than six months.
Investment policy required--time and demanddeposits--investments--interest rates.
30.260. 1. The state treasurer shall prepare, maintain and adhere toa written investment policy which shall include an asset allocation planwhich limits the total amount of state moneys which may be invested in anyparticular investment authorized by section 15, article IV of the MissouriConstitution. Such asset allocation plan shall also set diversificationlimits, as applicable, which shall include a restriction limiting the totalamount of time deposits of state moneys, not including linked deposits,placed with any one single banking institution to be no greater than tenpercent of all time deposits of state moneys. The state treasurer shallpresent a copy of such policy to the governor, commissioner ofadministration, state auditor and general assembly at the commencement ofeach regular session of the general assembly or at any time the writteninvestment policy is amended.
2. The state treasurer shall determine by the exercise of thetreasurer's best judgment the amount of state moneys that are not neededfor current operating expenses of the state government and shall keep ondemand deposit in banking institutions in this state selected by thetreasurer and approved by the governor and state auditor the amount ofstate moneys which the treasurer has so determined are needed for currentoperating expenses of the state government and disburse the same asauthorized by law.
3. Within the parameters of the state treasurer's written investmentpolicy, the state treasurer shall place the state moneys which thetreasurer has determined are not needed for current operations of the stategovernment on time deposit drawing interest in banking institutions in thisstate selected by the treasurer and approved by the governor and the stateauditor, or place them outright or, if applicable, by repurchase agreementin obligations described in section 15, article IV, Constitution ofMissouri, as the treasurer in the exercise of the treasurer's best judgmentdetermines to be in the best overall interest of the people of the state ofMissouri, giving due consideration to:
(1) The preservation of such state moneys;
(2) The benefits to the economy and welfare of the people of Missouriwhen such state money is invested in banking institutions in this statethat, in turn, provide additional loans and investments in the Missourieconomy and generate state taxes from such initial investments and theloans and investments created by the banking institutions, compared to theremoval or withholding from banking institutions in the state of all orsome such state moneys and investing same in obligations authorized insection 15, article IV of the Missouri Constitution;
(3) The liquidity needs of the state;
(4) The aggregate return in earnings and taxes on the deposits andthe investment to be derived therefrom; and
(5) All other factors which to the treasurer as a prudent statetreasurer seem to be relevant to the general public welfare in the light ofthe circumstances at the time prevailing. The state treasurer may alsoplace state moneys which are determined not needed for current operationsof the state government in linked deposits as provided in sections 30.750to 30.767.
4. Except for state moneys deposited in linked deposits as providedin sections 30.750 to 30.860, the rate of interest payable by all bankinginstitutions on time deposits of state moneys shall be set undersubdivisions (1) to (5) of this subsection and subsections 6 and 7 of thissection. The rate shall never exceed the maximum rate of interest which byfederal law or regulation a bank which is a member of the Federal ReserveSystem may from time to time pay on a time deposit of the same size andmaturity. The rate of interest payable by all banking institutions on timedeposits of state moneys is as follows:
(1) Beginning January 1, 2010, the rate of interest payable by abanking institution on up to seven million dollars of time deposits ofstate moneys shall be the same as the average rate paid during the weeknext preceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than seven million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of sevenmillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(2) Beginning January 1, 2011, the rate of interest payable by abanking institution on up to five million dollars of time deposits of statemoneys shall be the same as the average rate paid during the week nextpreceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than five million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of fivemillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(3) Beginning January 1, 2012, the rate of interest payable by abanking institution on up to three million dollars of time deposits ofstate moneys shall be the same as the average rate paid during the weeknext preceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than three million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of threemillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(4) Beginning January 1, 2013, the rate of interest payable by abanking institution on up to one million dollars of time deposits of statemoneys shall be the same as the average rate paid during the week nextpreceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than one million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of onemillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(5) Beginning January 1, 2014, the rate of interest payable by abanking institution on all time deposits of state moneys shall be set atthe market rate as determined in subsection 6 of this section.
5. Notwithstanding subdivisions (1) to (5) of subsection 4 of thissection, for any new time deposits of state moneys placed after January 1,2010, with a term longer than eighteen months, the rate of interest payableby a banking institution shall be set at the market rate as determined insubsection 6 of this section.
6. Market rate shall be determined no less frequently than once amonth by the director of investments in the office of state treasurer. Theprocess for determining a market rate shall include due consideration ofprevailing rates offered for certificates of deposit by well-capitalizedMissouri financial institutions, the advance rate established by theFederal Home Loan Bank of Des Moines for member institutions and the costsof collateralization, as well as an evaluation of the credit riskassociated with other authorized securities under section 15, article IV,of the Missouri Constitution. Banking institutions may also offer a higherrate than the market rate for any time deposit placed with the statetreasurer in excess of the total amount of state moneys set at the UnitedStates of America treasury securities maturing and becoming payable closestto the time of termination of the deposit indicated in subdivisions (1) to(5) of subsection 4 of this section.
7. Within the parameters of the state treasurer's written investmentpolicy, the state treasurer may subscribe for or purchase outright or byrepurchase agreement investments of the character described in subsection 3of this section which the treasurer, in the exercise of the treasurer'sbest judgment, believes to be the best for investment of state moneys atthe time and in payment therefor may withdraw moneys from any bank account,demand or time, maintained by the treasurer without having any supportingwarrant of the commissioner of administration. The state treasurer may bidon subscriptions for such obligations in accordance with the treasurer'sbest judgment. The state treasurer shall provide for the safekeeping ofall such obligations so acquired in the same manner that securities pledgedto secure the repayment of state moneys deposited in banking institutionsare kept by the treasurer pursuant to law. The state treasurer may holdany such obligation so acquired by the treasurer until its maturity orprior thereto may sell the same outright or by reverse repurchase agreementprovided the state's security interest in the underlying security isperfected or temporarily exchange such obligation for cash or otherauthorized securities of at least equal market value with no maturity morethan one year beyond the maturity of any of the traded obligations, for anegotiated fee as the treasurer, in the exercise of the treasurer's bestjudgment, deems necessary or advisable for the best interest of the peopleof the state of Missouri in the light of the circumstances at the timeprevailing. The state treasurer may pay all costs and expenses reasonablyincurred by the treasurer in connection with the subscription, purchase,sale, collection, safekeeping or delivery of all such obligations at anytime acquired by the treasurer.
8. As used in this chapter, except as more particularly specified insection 30.270, obligations of the United States shall include securitiesof the United States Treasury, and United States agencies orinstrumentalities as described in section 15, article IV, Constitution ofMissouri. The word "temporarily" as used in this section shall mean nomore than six months.
Investment policy required--time and demanddeposits--investments--interest rates.
30.260. 1. The state treasurer shall prepare, maintain and adhere toa written investment policy which shall include an asset allocation planwhich limits the total amount of state moneys which may be invested in anyparticular investment authorized by section 15, article IV of the MissouriConstitution. Such asset allocation plan shall also set diversificationlimits, as applicable, which shall include a restriction limiting the totalamount of time deposits of state moneys, not including linked deposits,placed with any one single banking institution to be no greater than tenpercent of all time deposits of state moneys. The state treasurer shallpresent a copy of such policy to the governor, commissioner ofadministration, state auditor and general assembly at the commencement ofeach regular session of the general assembly or at any time the writteninvestment policy is amended.
2. The state treasurer shall determine by the exercise of thetreasurer's best judgment the amount of state moneys that are not neededfor current operating expenses of the state government and shall keep ondemand deposit in banking institutions in this state selected by thetreasurer and approved by the governor and state auditor the amount ofstate moneys which the treasurer has so determined are needed for currentoperating expenses of the state government and disburse the same asauthorized by law.
3. Within the parameters of the state treasurer's written investmentpolicy, the state treasurer shall place the state moneys which thetreasurer has determined are not needed for current operations of the stategovernment on time deposit drawing interest in banking institutions in thisstate selected by the treasurer and approved by the governor and the stateauditor, or place them outright or, if applicable, by repurchase agreementin obligations described in section 15, article IV, Constitution ofMissouri, as the treasurer in the exercise of the treasurer's best judgmentdetermines to be in the best overall interest of the people of the state ofMissouri, giving due consideration to:
(1) The preservation of such state moneys;
(2) The benefits to the economy and welfare of the people of Missouriwhen such state money is invested in banking institutions in this statethat, in turn, provide additional loans and investments in the Missourieconomy and generate state taxes from such initial investments and theloans and investments created by the banking institutions, compared to theremoval or withholding from banking institutions in the state of all orsome such state moneys and investing same in obligations authorized insection 15, article IV of the Missouri Constitution;
(3) The liquidity needs of the state;
(4) The aggregate return in earnings and taxes on the deposits andthe investment to be derived therefrom; and
(5) All other factors which to the treasurer as a prudent statetreasurer seem to be relevant to the general public welfare in the light ofthe circumstances at the time prevailing. The state treasurer may alsoplace state moneys which are determined not needed for current operationsof the state government in linked deposits as provided in sections 30.750to 30.767.
4. Except for state moneys deposited in linked deposits as providedin sections 30.750 to 30.860, the rate of interest payable by all bankinginstitutions on time deposits of state moneys shall be set undersubdivisions (1) to (5) of this subsection and subsections 6 and 7 of thissection. The rate shall never exceed the maximum rate of interest which byfederal law or regulation a bank which is a member of the Federal ReserveSystem may from time to time pay on a time deposit of the same size andmaturity. The rate of interest payable by all banking institutions on timedeposits of state moneys is as follows:
(1) Beginning January 1, 2010, the rate of interest payable by abanking institution on up to seven million dollars of time deposits ofstate moneys shall be the same as the average rate paid during the weeknext preceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than seven million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of sevenmillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(2) Beginning January 1, 2011, the rate of interest payable by abanking institution on up to five million dollars of time deposits of statemoneys shall be the same as the average rate paid during the week nextpreceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than five million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of fivemillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(3) Beginning January 1, 2012, the rate of interest payable by abanking institution on up to three million dollars of time deposits ofstate moneys shall be the same as the average rate paid during the weeknext preceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than three million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of threemillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(4) Beginning January 1, 2013, the rate of interest payable by abanking institution on up to one million dollars of time deposits of statemoneys shall be the same as the average rate paid during the week nextpreceding the week in which the deposit was made for United States ofAmerica treasury securities maturing and becoming payable closest to thetime of termination of the deposit, as determined by the state treasurer,adjusted to the nearest one-tenth of a percent. In the case of a bankinginstitution that holds more than one million dollars of time deposits ofstate moneys, the rate of interest payable on deposits in excess of onemillion dollars of time deposits of state moneys shall be set at the marketrate as determined in subsection 6 of this section;
(5) Beginning January 1, 2014, the rate of interest payable by abanking institution on all time deposits of state moneys shall be set atthe market rate as determined in subsection 6 of this section.
5. Notwithstanding subdivisions (1) to (5) of subsection 4 of thissection, for any new time deposits of state moneys placed after January 1,2010, with a term longer than eighteen months, the rate of interest payableby a banking institution shall be set at the market rate as determined insubsection 6 of this section.
6. Market rate shall be determined no less frequently than once amonth by the director of investments in the office of state treasurer. Theprocess for determining a market rate shall include due consideration ofprevailing rates offered for certificates of deposit by well-capitalizedMissouri financial institutions, the advance rate established by theFederal Home Loan Bank of Des Moines for member institutions and the costsof collateralization, as well as an evaluation of the credit riskassociated with other authorized securities under section 15, article IV,of the Missouri Constitution. Banking institutions may also offer a higherrate than the market rate for any time deposit placed with the statetreasurer in excess of the total amount of state moneys set at the UnitedStates of America treasury securities maturing and becoming payable closestto the time of termination of the deposit indicated in subdivisions (1) to(5) of subsection 4 of this section.
7. Within the parameters of the state treasurer's written investmentpolicy, the state treasurer may subscribe for or purchase outright or byrepurchase agreement investments of the character described in subsection 3of this section which the treasurer, in the exercise of the treasurer'sbest judgment, believes to be the best for investment of state moneys atthe time and in payment therefor may withdraw moneys from any bank account,demand or time, maintained by the treasurer without having any supportingwarrant of the commissioner of administration. The state treasurer may bidon subscriptions for such obligations in accordance with the treasurer'sbest judgment. The state treasurer shall provide for the safekeeping ofall such obligations so acquired in the same manner that securities pledgedto secure the repayment of state moneys deposited in banking institutionsare kept by the treasurer pursuant to law. The state treasurer may holdany such obligation so acquired by the treasurer until its maturity orprior thereto may sell the same outright or by reverse repurchase agreementprovided the state's security interest in the underlying security isperfected or temporarily exchange such obligation for cash or otherauthorized securities of at least equal market value with no maturity morethan one year beyond the maturity of any of the traded obligations, for anegotiated fee as the treasurer, in the exercise of the treasurer's bestjudgment, deems necessary or advisable for the best interest of the peopleof the state of Missouri in the light of the circumstances at the timeprevailing. The state treasurer may pay all costs and expenses reasonablyincurred by the treasurer in connection with the subscription, purchase,sale, collection, safekeeping or delivery of all such obligations at anytime acquired by the treasurer.
8. As used in this chapter, except as more particularly specified insection 30.270, obligations of the United States shall include securitiesof the United States Treasury, and United States agencies orinstrumentalities as described in section 15, article IV, Constitution ofMissouri. The word "temporarily" as used in this section shall mean nomore than six months.
