30.270. 1. For the security of the moneys deposited by the statetreasurer pursuant to the provisions of this chapter, the state treasurershall, from time to time, submit a list of acceptable securities to beapproved by the governor and state auditor if satisfactory to them, and thestate treasurer shall require of the selected and approved banks orfinancial institutions as security for the safekeeping and payment ofdeposits, securities from the list provided for in this section, which listshall include only securities of the following kind and character, unlessit is determined by the state treasurer that the use of such securities ascollateral may place state public funds at undue risk:
(1) Bonds or other obligations of the United States;
(2) Bonds or other obligations of the state of Missouri includingrevenue bonds issued by state agencies or by state authorities created bylegislative enactment;
(3) Bonds or other obligations of any city in this state having apopulation of not less than two thousand;
(4) Bonds or other obligations of any county in this state;
(5) Approved registered bonds or other obligations of any schooldistrict, including certificates of participation and leasehold revenuebonds, situated in this state;
(6) Approved registered bonds or other obligations of any specialroad district in this state;
(7) State bonds or other obligations of any state;
(8) Notes, bonds, debentures or other similar obligations issued bythe farm credit banks or agricultural credit banks or any other obligationsissued pursuant to the provisions of an act of the Congress of the UnitedStates known as the Farm Credit Act of 1971, and acts amendatory thereto;
(9) Bonds of the federal home loan banks;
(10) Any bonds or other obligations guaranteed as to payment ofprincipal and interest by the government of the United States or any agencyor instrumentality thereof;
(11) Bonds of any political subdivision established pursuant to theprovisions of section 30, article VI of the Constitution of Missouri;
(12) Tax anticipation notes issued by any county of the firstclassification;
(13) A surety bond issued by an insurance company licensed pursuantto the laws of the state of Missouri whose claims-paying ability is ratedin the highest category by at least one nationally recognized statisticalrating agency. The face amount of such surety bond shall be at least equalto the portion of the deposit to be secured by the surety bond;
(14) An irrevocable standby letter of credit issued by a Federal HomeLoan Bank possessing the highest rating issued by at least one nationallyrecognized statistical rating agency;
(15) Out-of-state municipal bonds, including certificates ofparticipation and leasehold revenue bonds, provided such bonds are rated inthe highest category by at least one nationally recognized statisticalrating agency;
(16) (a) Mortgage securities that are individual loans that includenegotiable promissory notes and the first lien deeds of trust securingpayment of such notes on one to four family real estate, on commercial realestate, or on farm real estate located in Missouri or states adjacent toMissouri, provided such loans:
a. Are underwritten to conform to standards established by the statetreasurer, which are substantially similar to standards established by theFederal Home Loan Bank of Des Moines, Iowa, and any of its successors ininterest that provide funding for financial institutions in Missouri;
b. Are offered by a financial institution in which a senior executiveofficer certifies under penalty of perjury that such loans are compliantwith the requirements of the Federal Home Loan Bank of Des Moines, Iowa,when such loans are pledged by such bank;
c. Are offered by a financial institution that is well capitalized;and
d. Are not construction loans, are not more than ninety daysdelinquent, have not been classified as substandard, doubtful, or subjectto loss, are one hundred percent owned by the financial institution, areotherwise unencumbered and are not being temporarily warehoused in thefinancial institution for sale to a third party.
Any disqualified mortgage securities shall be removed as collateral withinninety days of disqualification or the state treasurer may disqualify suchcollateral as collateral for state funds;
(b) The state treasurer may promulgate regulations and provide suchother forms or agreements to ensure the state maintains a first priorityposition on the deeds of trust and otherwise protect and preserve statefunds. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2005, shall beinvalid and void;
(c) A status report on all such mortgage securities shall be providedto the state treasurer on a calendar monthly basis in the manner and formatprescribed by the state treasurer by the financial institutions pledgingsuch mortgage securities and also shall certify their compliance withsubsection 2 for such mortgage securities;
(d) In the alternative to paragraph (a) of this subdivision, afinancial institution may provide a blanket lien on all loans secured byone to four family real estate, all loans secured by commercial realestate, all loans secured by farm real estate, or any combination of thesecategories, provided the financial institution secures such blanket lienswith real estate located in Missouri and states adjacent to Missouri andotherwise complies with paragraphs (b) and (c) of this subdivision;
(e) The provisions of paragraphs (a) to (d) of this subdivision arenot authorized for any Missouri political subdivision, notwithstanding theprovisions of chapter 110, RSMo, to the contrary;
(f) As used in this subdivision, the term "unencumbered" shall meanmortgage securities pledged for state funds as provided in subsection 1 ofthis section, and not subject to any other express claims by any thirdparties, including but not limited to a blanket lien on the bank assets bythe Federal Home Loan Bank, a depositary arrangement when securities areloaned and repurchased daily or otherwise, or the depositary has pledgedits stock and assets for a loan to purchase another depositary orotherwise; and
(g) As used in this subdivision, the term "well capitalized" shallmean a banking institution that according to its most recent report ofcondition and income or thrift financial report, publicly available asapplicable, qualifies as well capitalized under the uniform capitalrequirements established by the federal banking regulators or as determinedby state banking regulators under substantially similar requirements;
(17) Any investment that the state treasurer may invest in asprovided in article IV, section 15 of the Missouri Constitution, andsubject to the state treasurer's written investment policy in section30.260, that is not otherwise provided for in this section, provided thebanking institution or eligible lending institution as defined insubdivision (10) of section 30.750 is well capitalized, as defined insubdivision (16) of this subsection. The provisions of this subdivisionare not authorized for political subdivisions, notwithstanding theprovisions of chapter 110, RSMo, to the contrary.
2. Securities deposited shall be in an amount valued at market equalat least to one hundred percent of the aggregate amount on time deposit aswell as on demand deposit with the particular financial institution lessthe amount, if any, which is insured either by the Federal DepositInsurance Corporation or by the National Credit Unions Share InsuranceFund. Furthermore, for a well-capitalized banking institution, securitiesauthorized in this section that are:
(1) Mortgage securities on loans secured on one to four family realestate appraised to reflect the market value at the time of the loan anddeposited as collateral shall not exceed one hundred twenty-five percent ofthe aggregate amount of time deposits and demand deposits;
(2) Mortgage securities on loans secured on commercial real estate oron farm real estate appraised to reflect the market value at the time ofthe loan and deposited as collateral shall not exceed the collateralrequirements of the Federal Home Loan Bank of Des Moines, Iowa;
(3) United States Treasury securities and United States FederalAgency debentures issued by Fannie Mae, Freddie Mac, the Federal Home LoanBank, or the Federal Farm Credit Bank valued at market and deposited ascollateral shall not exceed one hundred five percent of the aggregateamount of time deposits and demand deposits. All other securities, exceptas noted elsewhere in this section valued at market and deposited ascollateral shall not exceed one hundred fifteen percent of the aggregatedamount of the time deposits and demand deposits; and
(4) Securities that are surety bonds and letters of credit authorizedas collateral need only collateralize one hundred percent of the aggregateamount of time deposits and demand deposits.
3. The securities or book entry receipts shall be delivered to thestate treasurer and receipted for by the state treasurer and retained bythe treasurer or by financial institutions that the governor, state auditorand treasurer agree upon. The state treasurer shall from time to timeinspect the securities and book entry receipts and see that they areactually held by the state treasury or by the financial institutionsselected as the state depositaries. The governor and the state auditor mayinspect or request an accounting of the securities or book entry receipts,and if in any case, or at any time, the securities are not satisfactorysecurity for deposits made as provided by law, they may require additionalsecurity to be given that is satisfactory to them.
4. Any securities deposited pursuant to this section may from time totime be withdrawn and other securities described in the list provided forin subsection 1 of this section may be substituted in lieu of the withdrawnsecurities with the consent of the treasurer; but a sufficient amount ofsecurities to secure the deposits shall always be held by the treasury orin the selected depositaries.
5. If a financial institution of deposit fails to pay a deposit, orany part thereof, pursuant to the terms of its contract with the statetreasurer, the state treasurer shall forthwith convert the securities intomoney and disburse the same according to law.
6. Any financial institution making deposits of bonds with the statetreasurer pursuant to the provisions of this chapter may cause the bonds tobe endorsed or stamped as it deems proper, so as to show that they aredeposited as collateral and are not transferable except upon the conditionsof this chapter or upon the release by the state treasurer.
30.270. 1. For the security of the moneys deposited by the statetreasurer pursuant to the provisions of this chapter, the state treasurershall, from time to time, submit a list of acceptable securities to beapproved by the governor and state auditor if satisfactory to them, and thestate treasurer shall require of the selected and approved banks orfinancial institutions as security for the safekeeping and payment ofdeposits, securities from the list provided for in this section, which listshall include only securities of the following kind and character, unlessit is determined by the state treasurer that the use of such securities ascollateral may place state public funds at undue risk:
(1) Bonds or other obligations of the United States;
(2) Bonds or other obligations of the state of Missouri includingrevenue bonds issued by state agencies or by state authorities created bylegislative enactment;
(3) Bonds or other obligations of any city in this state having apopulation of not less than two thousand;
(4) Bonds or other obligations of any county in this state;
(5) Approved registered bonds or other obligations of any schooldistrict, including certificates of participation and leasehold revenuebonds, situated in this state;
(6) Approved registered bonds or other obligations of any specialroad district in this state;
(7) State bonds or other obligations of any state;
(8) Notes, bonds, debentures or other similar obligations issued bythe farm credit banks or agricultural credit banks or any other obligationsissued pursuant to the provisions of an act of the Congress of the UnitedStates known as the Farm Credit Act of 1971, and acts amendatory thereto;
(9) Bonds of the federal home loan banks;
(10) Any bonds or other obligations guaranteed as to payment ofprincipal and interest by the government of the United States or any agencyor instrumentality thereof;
(11) Bonds of any political subdivision established pursuant to theprovisions of section 30, article VI of the Constitution of Missouri;
(12) Tax anticipation notes issued by any county of the firstclassification;
(13) A surety bond issued by an insurance company licensed pursuantto the laws of the state of Missouri whose claims-paying ability is ratedin the highest category by at least one nationally recognized statisticalrating agency. The face amount of such surety bond shall be at least equalto the portion of the deposit to be secured by the surety bond;
(14) An irrevocable standby letter of credit issued by a Federal HomeLoan Bank possessing the highest rating issued by at least one nationallyrecognized statistical rating agency;
(15) Out-of-state municipal bonds, including certificates ofparticipation and leasehold revenue bonds, provided such bonds are rated inthe highest category by at least one nationally recognized statisticalrating agency;
(16) (a) Mortgage securities that are individual loans that includenegotiable promissory notes and the first lien deeds of trust securingpayment of such notes on one to four family real estate, on commercial realestate, or on farm real estate located in Missouri or states adjacent toMissouri, provided such loans:
a. Are underwritten to conform to standards established by the statetreasurer, which are substantially similar to standards established by theFederal Home Loan Bank of Des Moines, Iowa, and any of its successors ininterest that provide funding for financial institutions in Missouri;
b. Are offered by a financial institution in which a senior executiveofficer certifies under penalty of perjury that such loans are compliantwith the requirements of the Federal Home Loan Bank of Des Moines, Iowa,when such loans are pledged by such bank;
c. Are offered by a financial institution that is well capitalized;and
d. Are not construction loans, are not more than ninety daysdelinquent, have not been classified as substandard, doubtful, or subjectto loss, are one hundred percent owned by the financial institution, areotherwise unencumbered and are not being temporarily warehoused in thefinancial institution for sale to a third party.
Any disqualified mortgage securities shall be removed as collateral withinninety days of disqualification or the state treasurer may disqualify suchcollateral as collateral for state funds;
(b) The state treasurer may promulgate regulations and provide suchother forms or agreements to ensure the state maintains a first priorityposition on the deeds of trust and otherwise protect and preserve statefunds. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2005, shall beinvalid and void;
(c) A status report on all such mortgage securities shall be providedto the state treasurer on a calendar monthly basis in the manner and formatprescribed by the state treasurer by the financial institutions pledgingsuch mortgage securities and also shall certify their compliance withsubsection 2 for such mortgage securities;
(d) In the alternative to paragraph (a) of this subdivision, afinancial institution may provide a blanket lien on all loans secured byone to four family real estate, all loans secured by commercial realestate, all loans secured by farm real estate, or any combination of thesecategories, provided the financial institution secures such blanket lienswith real estate located in Missouri and states adjacent to Missouri andotherwise complies with paragraphs (b) and (c) of this subdivision;
(e) The provisions of paragraphs (a) to (d) of this subdivision arenot authorized for any Missouri political subdivision, notwithstanding theprovisions of chapter 110, RSMo, to the contrary;
(f) As used in this subdivision, the term "unencumbered" shall meanmortgage securities pledged for state funds as provided in subsection 1 ofthis section, and not subject to any other express claims by any thirdparties, including but not limited to a blanket lien on the bank assets bythe Federal Home Loan Bank, a depositary arrangement when securities areloaned and repurchased daily or otherwise, or the depositary has pledgedits stock and assets for a loan to purchase another depositary orotherwise; and
(g) As used in this subdivision, the term "well capitalized" shallmean a banking institution that according to its most recent report ofcondition and income or thrift financial report, publicly available asapplicable, qualifies as well capitalized under the uniform capitalrequirements established by the federal banking regulators or as determinedby state banking regulators under substantially similar requirements;
(17) Any investment that the state treasurer may invest in asprovided in article IV, section 15 of the Missouri Constitution, andsubject to the state treasurer's written investment policy in section30.260, that is not otherwise provided for in this section, provided thebanking institution or eligible lending institution as defined insubdivision (10) of section 30.750 is well capitalized, as defined insubdivision (16) of this subsection. The provisions of this subdivisionare not authorized for political subdivisions, notwithstanding theprovisions of chapter 110, RSMo, to the contrary.
2. Securities deposited shall be in an amount valued at market equalat least to one hundred percent of the aggregate amount on time deposit aswell as on demand deposit with the particular financial institution lessthe amount, if any, which is insured either by the Federal DepositInsurance Corporation or by the National Credit Unions Share InsuranceFund. Furthermore, for a well-capitalized banking institution, securitiesauthorized in this section that are:
(1) Mortgage securities on loans secured on one to four family realestate appraised to reflect the market value at the time of the loan anddeposited as collateral shall not exceed one hundred twenty-five percent ofthe aggregate amount of time deposits and demand deposits;
(2) Mortgage securities on loans secured on commercial real estate oron farm real estate appraised to reflect the market value at the time ofthe loan and deposited as collateral shall not exceed the collateralrequirements of the Federal Home Loan Bank of Des Moines, Iowa;
(3) United States Treasury securities and United States FederalAgency debentures issued by Fannie Mae, Freddie Mac, the Federal Home LoanBank, or the Federal Farm Credit Bank valued at market and deposited ascollateral shall not exceed one hundred five percent of the aggregateamount of time deposits and demand deposits. All other securities, exceptas noted elsewhere in this section valued at market and deposited ascollateral shall not exceed one hundred fifteen percent of the aggregatedamount of the time deposits and demand deposits; and
(4) Securities that are surety bonds and letters of credit authorizedas collateral need only collateralize one hundred percent of the aggregateamount of time deposits and demand deposits.
3. The securities or book entry receipts shall be delivered to thestate treasurer and receipted for by the state treasurer and retained bythe treasurer or by financial institutions that the governor, state auditorand treasurer agree upon. The state treasurer shall from time to timeinspect the securities and book entry receipts and see that they areactually held by the state treasury or by the financial institutionsselected as the state depositaries. The governor and the state auditor mayinspect or request an accounting of the securities or book entry receipts,and if in any case, or at any time, the securities are not satisfactorysecurity for deposits made as provided by law, they may require additionalsecurity to be given that is satisfactory to them.
4. Any securities deposited pursuant to this section may from time totime be withdrawn and other securities described in the list provided forin subsection 1 of this section may be substituted in lieu of the withdrawnsecurities with the consent of the treasurer; but a sufficient amount ofsecurities to secure the deposits shall always be held by the treasury orin the selected depositaries.
5. If a financial institution of deposit fails to pay a deposit, orany part thereof, pursuant to the terms of its contract with the statetreasurer, the state treasurer shall forthwith convert the securities intomoney and disburse the same according to law.
6. Any financial institution making deposits of bonds with the statetreasurer pursuant to the provisions of this chapter may cause the bonds tobe endorsed or stamped as it deems proper, so as to show that they aredeposited as collateral and are not transferable except upon the conditionsof this chapter or upon the release by the state treasurer.
30.270. 1. For the security of the moneys deposited by the statetreasurer pursuant to the provisions of this chapter, the state treasurershall, from time to time, submit a list of acceptable securities to beapproved by the governor and state auditor if satisfactory to them, and thestate treasurer shall require of the selected and approved banks orfinancial institutions as security for the safekeeping and payment ofdeposits, securities from the list provided for in this section, which listshall include only securities of the following kind and character, unlessit is determined by the state treasurer that the use of such securities ascollateral may place state public funds at undue risk:
(1) Bonds or other obligations of the United States;
(2) Bonds or other obligations of the state of Missouri includingrevenue bonds issued by state agencies or by state authorities created bylegislative enactment;
(3) Bonds or other obligations of any city in this state having apopulation of not less than two thousand;
(4) Bonds or other obligations of any county in this state;
(5) Approved registered bonds or other obligations of any schooldistrict, including certificates of participation and leasehold revenuebonds, situated in this state;
(6) Approved registered bonds or other obligations of any specialroad district in this state;
(7) State bonds or other obligations of any state;
(8) Notes, bonds, debentures or other similar obligations issued bythe farm credit banks or agricultural credit banks or any other obligationsissued pursuant to the provisions of an act of the Congress of the UnitedStates known as the Farm Credit Act of 1971, and acts amendatory thereto;
(9) Bonds of the federal home loan banks;
(10) Any bonds or other obligations guaranteed as to payment ofprincipal and interest by the government of the United States or any agencyor instrumentality thereof;
(11) Bonds of any political subdivision established pursuant to theprovisions of section 30, article VI of the Constitution of Missouri;
(12) Tax anticipation notes issued by any county of the firstclassification;
(13) A surety bond issued by an insurance company licensed pursuantto the laws of the state of Missouri whose claims-paying ability is ratedin the highest category by at least one nationally recognized statisticalrating agency. The face amount of such surety bond shall be at least equalto the portion of the deposit to be secured by the surety bond;
(14) An irrevocable standby letter of credit issued by a Federal HomeLoan Bank possessing the highest rating issued by at least one nationallyrecognized statistical rating agency;
(15) Out-of-state municipal bonds, including certificates ofparticipation and leasehold revenue bonds, provided such bonds are rated inthe highest category by at least one nationally recognized statisticalrating agency;
(16) (a) Mortgage securities that are individual loans that includenegotiable promissory notes and the first lien deeds of trust securingpayment of such notes on one to four family real estate, on commercial realestate, or on farm real estate located in Missouri or states adjacent toMissouri, provided such loans:
a. Are underwritten to conform to standards established by the statetreasurer, which are substantially similar to standards established by theFederal Home Loan Bank of Des Moines, Iowa, and any of its successors ininterest that provide funding for financial institutions in Missouri;
b. Are offered by a financial institution in which a senior executiveofficer certifies under penalty of perjury that such loans are compliantwith the requirements of the Federal Home Loan Bank of Des Moines, Iowa,when such loans are pledged by such bank;
c. Are offered by a financial institution that is well capitalized;and
d. Are not construction loans, are not more than ninety daysdelinquent, have not been classified as substandard, doubtful, or subjectto loss, are one hundred percent owned by the financial institution, areotherwise unencumbered and are not being temporarily warehoused in thefinancial institution for sale to a third party.
Any disqualified mortgage securities shall be removed as collateral withinninety days of disqualification or the state treasurer may disqualify suchcollateral as collateral for state funds;
(b) The state treasurer may promulgate regulations and provide suchother forms or agreements to ensure the state maintains a first priorityposition on the deeds of trust and otherwise protect and preserve statefunds. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2005, shall beinvalid and void;
(c) A status report on all such mortgage securities shall be providedto the state treasurer on a calendar monthly basis in the manner and formatprescribed by the state treasurer by the financial institutions pledgingsuch mortgage securities and also shall certify their compliance withsubsection 2 for such mortgage securities;
(d) In the alternative to paragraph (a) of this subdivision, afinancial institution may provide a blanket lien on all loans secured byone to four family real estate, all loans secured by commercial realestate, all loans secured by farm real estate, or any combination of thesecategories, provided the financial institution secures such blanket lienswith real estate located in Missouri and states adjacent to Missouri andotherwise complies with paragraphs (b) and (c) of this subdivision;
(e) The provisions of paragraphs (a) to (d) of this subdivision arenot authorized for any Missouri political subdivision, notwithstanding theprovisions of chapter 110, RSMo, to the contrary;
(f) As used in this subdivision, the term "unencumbered" shall meanmortgage securities pledged for state funds as provided in subsection 1 ofthis section, and not subject to any other express claims by any thirdparties, including but not limited to a blanket lien on the bank assets bythe Federal Home Loan Bank, a depositary arrangement when securities areloaned and repurchased daily or otherwise, or the depositary has pledgedits stock and assets for a loan to purchase another depositary orotherwise; and
(g) As used in this subdivision, the term "well capitalized" shallmean a banking institution that according to its most recent report ofcondition and income or thrift financial report, publicly available asapplicable, qualifies as well capitalized under the uniform capitalrequirements established by the federal banking regulators or as determinedby state banking regulators under substantially similar requirements;
(17) Any investment that the state treasurer may invest in asprovided in article IV, section 15 of the Missouri Constitution, andsubject to the state treasurer's written investment policy in section30.260, that is not otherwise provided for in this section, provided thebanking institution or eligible lending institution as defined insubdivision (10) of section 30.750 is well capitalized, as defined insubdivision (16) of this subsection. The provisions of this subdivisionare not authorized for political subdivisions, notwithstanding theprovisions of chapter 110, RSMo, to the contrary.
2. Securities deposited shall be in an amount valued at market equalat least to one hundred percent of the aggregate amount on time deposit aswell as on demand deposit with the particular financial institution lessthe amount, if any, which is insured either by the Federal DepositInsurance Corporation or by the National Credit Unions Share InsuranceFund. Furthermore, for a well-capitalized banking institution, securitiesauthorized in this section that are:
(1) Mortgage securities on loans secured on one to four family realestate appraised to reflect the market value at the time of the loan anddeposited as collateral shall not exceed one hundred twenty-five percent ofthe aggregate amount of time deposits and demand deposits;
(2) Mortgage securities on loans secured on commercial real estate oron farm real estate appraised to reflect the market value at the time ofthe loan and deposited as collateral shall not exceed the collateralrequirements of the Federal Home Loan Bank of Des Moines, Iowa;
(3) United States Treasury securities and United States FederalAgency debentures issued by Fannie Mae, Freddie Mac, the Federal Home LoanBank, or the Federal Farm Credit Bank valued at market and deposited ascollateral shall not exceed one hundred five percent of the aggregateamount of time deposits and demand deposits. All other securities, exceptas noted elsewhere in this section valued at market and deposited ascollateral shall not exceed one hundred fifteen percent of the aggregatedamount of the time deposits and demand deposits; and
(4) Securities that are surety bonds and letters of credit authorizedas collateral need only collateralize one hundred percent of the aggregateamount of time deposits and demand deposits.
3. The securities or book entry receipts shall be delivered to thestate treasurer and receipted for by the state treasurer and retained bythe treasurer or by financial institutions that the governor, state auditorand treasurer agree upon. The state treasurer shall from time to timeinspect the securities and book entry receipts and see that they areactually held by the state treasury or by the financial institutionsselected as the state depositaries. The governor and the state auditor mayinspect or request an accounting of the securities or book entry receipts,and if in any case, or at any time, the securities are not satisfactorysecurity for deposits made as provided by law, they may require additionalsecurity to be given that is satisfactory to them.
4. Any securities deposited pursuant to this section may from time totime be withdrawn and other securities described in the list provided forin subsection 1 of this section may be substituted in lieu of the withdrawnsecurities with the consent of the treasurer; but a sufficient amount ofsecurities to secure the deposits shall always be held by the treasury orin the selected depositaries.
5. If a financial institution of deposit fails to pay a deposit, orany part thereof, pursuant to the terms of its contract with the statetreasurer, the state treasurer shall forthwith convert the securities intomoney and disburse the same according to law.
6. Any financial institution making deposits of bonds with the statetreasurer pursuant to the provisions of this chapter may cause the bonds tobe endorsed or stamped as it deems proper, so as to show that they aredeposited as collateral and are not transferable except upon the conditionsof this chapter or upon the release by the state treasurer.
