355.165 - Local Government Pooled Long-Term Investment Account: Creation; administration; applicability of NRS 355.167
355.165 Local Government Pooled Long-Term Investment Account: Creation; administration; applicability of NRS 355.167; permissible investments; assessment of costs; computation of interest; establishment of subaccounts.
1. The Local Government Pooled Long-Term Investment Account is hereby created. The Account must be administered by the State Treasurer.
2. All of the provisions of NRS 355.167 apply to the Local Government Pooled Long-Term Investment Account.
3. In addition to the investments which are permissible pursuant to subsection 3 of NRS 355.167, the Treasurer may invest the money in the Local Government Pooled Long-Term Investment Account in:
(a) Mutual funds which:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated in the highest rating category by at least one nationally recognized rating service; and
(3) Invest only in securities issued by the Federal Government or agencies of the Federal Government or in repurchase agreements fully collateralized by such securities.
(b) An investment contract that is collateralized with securities issued by the Federal Government or agencies of the Federal Government if:
(1) The collateral has a market value of at least 102 percent of the amount invested and any accrued unpaid interest thereon;
(2) The Treasurer receives a security interest in the collateral that is fully perfected and the collateral is held in custody for the State by a third-party agent of the State which is a commercial bank authorized to exercise trust powers;
(3) The market value of the collateral is determined not less frequently than weekly and, if the ratio required by subparagraph (1) is not met, sufficient additional collateral is deposited with the agent of this State to meet that ratio within 2 business days after the determination; and
(4) The party with whom the investment contract is executed is a commercial bank or credit union, or that party or a guarantor of the performance of that party is:
(I) An insurance company which has a rating on its ability to pay claims of not less than “Aa2” by Moody’s Investors Service, Inc., or “AA” by Standard and Poor’s Ratings Services, or their equivalent; or
(II) An entity which has a credit rating on its outstanding long-term debt of not less than “A2” by Moody’s Investors Service, Inc., or “A” by Standard and Poor’s Ratings Services, or their equivalent.
4. In addition to the reasonable charges against the Account which the State Treasurer may assess pursuant to subsection 8 of NRS 355.167, the State Treasurer may, in the case of a local government pooled long-term investment account, assess the costs:
(a) Associated with a calculation of any rebate of arbitrage profits which is required to be paid to the Federal Government by 26 U.S.C. § 148; and
(b) Of contracting with qualified persons to assist in the:
(1) Calculation of any rebate of arbitrage profits which is required to be paid to the Federal Government by 26 U.S.C. § 148; and
(2) Administration of the Account.
5. In addition to the quarterly computations of interest to be reinvested for or paid to each participating local government pursuant to subsection 9 of NRS 355.167, the State Treasurer may, in the case of a local government pooled long-term investment account, compute and reinvest or pay the interest more frequently. The State Treasurer may also base his or her computations on the amount of interest accrued rather than the amount received.
6. The Treasurer may establish one or more separate subaccounts in the Local Government Pooled Long-Term Investment Account for identified investments that are made for and allocated to specific participating local governments.
(Added to NRS by 1993, 257; A 1997, 2879; 1999, 1480)