SECOND REGULAR SESSION
SENATE BILL NO. 1093
92ND GENERAL ASSEMBLY
INTRODUCED BY SENATORS GIBBONS AND YECKEL.
Read 1st time January 15, 2004, and ordered printed.
TERRY L. SPIELER, Secretary.
3931S.01I
AN ACT
To amend chapter 67, RSMo, by adding thereto one new section relating to investment of public funds.
Section A. Chapter 67, RSMo, is amended by adding thereto one new section, to be known as section 67.085, to read as follows:
67.085. In lieu of or in addition to other statutory authorization for the placement of public funds of every county, township, city, town, village, school district of every character, road district, sewer district, fire protection district, water supply district, drainage or levee district, state hospital, state schools for the mentally deficient, Missouri School for the Deaf, Missouri School for the Blind, Missouri Training School for Boys, Missouri Training School for Girls, Missouri Veterans' Home, Missouri State Chest Hospital, state universities, Missouri state teachers' colleges, Lincoln University, the treasurer or other authorized official of any such public entity may invest funds of the public entity not immediately needed for the purpose to which such funds or any of them may be applicable in accordance with the following conditions:
(1) The public funds are placed in a banking institution which has been selected as a depositary of the funds in accordance with the applicable provisions of the statutes of Missouri relating to the selection of depositaries;
(2) The selected banking institution arranges for the deposit of the public funds in certificates of deposit in one or more banking institutions wherever located in the United States, for the account of the public entity;
(3) Each such certificate of deposit is insured by the Federal Deposit Insurance Corporation;
(4) The selected banking institution acts as custodian for the public entity with respect to the certificate of deposit issued for its account; and
(5) At the same time that the public funds are deposited and the certificates of deposit are issued, the selected banking institution receives an amount of deposits from customers of other banking institutions equal to the amount of the public funds initially placed by the public entity.