State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_115C > GS_115C-443

§ 115C‑443.  Investment of idle cash.

(a)        A local school administrative unit may deposit at interestor invest all or part of the cash balance of any fund. The finance officershall manage investments subject to whatever restrictions and directions theboard of education may impose. The finance officer shall have the power topurchase, sell, and exchange securities on behalf of the board of education.The investment program shall be so managed that investments and deposits can beconverted into cash when needed.

(b)        Moneys may be deposited at interest at any bank, savings andloan association, or trust company in this State in the form of certificates ofdeposit or such other forms of time deposit as the Local Government Commissionmay approve. Investment deposits shall be secured as provided in G.S. 115C‑444(b).

(c)        Moneys may be invested in the following classes ofsecurities, and no others:

(1)        Obligations of the United States of America.

(2)        Obligations of any agency or instrumentality of the UnitedStates of America if the payment of interest and principal of such obligationsis fully guaranteed by the United States of America.

(3)        Obligations of the State of North Carolina.

(4)        Bonds and notes of any North Carolina local government orpublic authority, subject to such restrictions as the Secretary of the LocalGovernment Commission may impose.

(5)        Shares of any savings and loan association organized underthe laws of this State and shares of any federal savings and loan associationhaving its principal office in this State, to the extent that the investment insuch shares is fully insured by the United States of America or an agencythereof or by any mutual deposit guaranty association authorized by theCommissioner of Insurance of North Carolina to do business in North Carolinapursuant to Article 7A of Chapter 54 of the General Statutes.

(6)        Obligations maturing no later than 18 months after the dateof purchase of the Federal Intermediate Credit Banks, the Federal Home LoanBanks, Fannie Mae, the Banks for Cooperatives, and the Federal Land Banks.

(7)        Any form of investment allowed by law to the StateTreasurer.

(8)        Any form of investment allowed by G.S. 159‑30 to localgovernments and public authorities.

(d)        Investment securities may be bought, sold, and traded byprivate negotiation, and local school administrative units may pay allincidental costs thereof and all reasonable cost of administering theinvestment and deposit program. Securities and deposit certificates shall be inthe custody of the finance officer who shall be responsible for theirsafekeeping and for keeping accurate investment accounts and records.

(e)        Interest earned on deposits and investments shall becredited to the fund whose cash is deposited or invested. Cash of several fundsmay be combined for deposit or investment if not otherwise prohibited by law;and when such joint deposits or investments are made, interest earned shall beprorated and credited to the various funds on the basis of the amounts thereofinvested, figured according to an average periodic balance or some other soundaccounting principle. Interest earned on the deposit or investment of bondfunds shall be deemed a part of the bond proceeds.

(f)         Registered securities acquired for investment may bereleased from registration and transferred by signature of the finance officer.

(g)        It is the intent of this Article that the foregoingprovisions of this section shall apply only to those funds received by thelocal school administrative unit as required by G.S. 115C‑437. The countyfinance officer shall be responsible for the investment of all county fundsallocated to the local school administrative unit prior to such county fundsactually being remitted to the school finance officer as provided by G.S. 115C‑437.(1975, c. 437, s. 1; 1981, c. 423, s. 1; 1985, c. 246,s. 1; 2001‑487, s. 14(h).)