§ 19-8-111 - Additional authority for investment of public funds.
19-8-111. Additional authority for investment of public funds.
(a) Notwithstanding any law to the contrary, including, but not limited to, 19-8-103 and 19-8-105, the state or local government and any trusts created under the Local Government Joint Investment Trust Act, 19-8-301 et seq., may invest public funds through an eligible bank under 19-8-105 if:
(1) The bank arranges for the deposit of all or a portion of the funds in certificates of deposit in one (1) or more banks or savings and loan associations located within the United States for the account of the state or local government or trust;
(2) Each certificate of deposit is insured by the Federal Deposit Insurance Corporation for one hundred percent (100%) of the principal and accrued interest of the certificate of deposit;
(3) The bank acts as custodian of the certificates of deposit issued for the account of the state or local government or trust and, as custodian, is charged with the care of the certificates of deposit and their segregation in appropriate records reflecting the total principal amount of the certificates of deposit for each custodial account; and
(4) At the time the funds are deposited and the certificates of deposit are issued, the bank receives an amount of deposits from customers of other financial institutions located in the United States that is equal to or greater than the amount of the funds invested by the state or local government or trust.
(b) For any investment of public funds under this section, the provisions of 19-8-106 and 19-8-107 apply only to the eligible bank selected under subsection (a) of this section.
(c) Additional security shall not be required for investments of public funds under this section.
(d) As used in this section, "local government" means any city, county, town, or other political subdivision of the State of Arkansas, including, but not limited to, any:
(1) School district or community college district;
(2) Improvement or other taxing or assessing district;
(3) Department, instrumentality, or agency of any city, county, or other political subdivision, including, but not limited to, any local fire and police pension or relief funds; and
(4) Local government association as defined in 19-8-303.