355.178 - Loans from investment portfolios of certain counties, cities or consolidated municipalities.
355.178 Loans from investment portfolios of certain counties, cities or consolidated municipalities.
1. The governing body of a city whose population is 150,000 or more or a county whose population is 100,000 or more may lend securities from its investment portfolio if:
(a) The investment portfolio has a value of at least $100,000,000;
(b) The treasurer of the city or county:
(1) Establishes a policy for investment that includes provisions which set forth the procedures to be used to lend securities pursuant to this section; and
(2) Submits the policy established pursuant to subparagraph (1) to the city or county manager and prepares and submits to the city or county manager a monthly report that sets forth the securities that have been lent pursuant to this section and any other information relating thereto, including, without limitation, the terms of each agreement for the lending of those securities; and
(c) The governing body receives collateral from the borrower in the form of cash or marketable securities that are:
(1) Authorized pursuant to NRS 355.170, if the collateral is in the form of marketable securities; and
(2) At least 102 percent of the value of the securities borrowed.
2. The governing body of a city or consolidated municipality whose population is 25,000 or more but less than 150,000 may lend securities from its investment portfolio if:
(a) The investment portfolio has a value of at least $50,000,000;
(b) The governing body is currently authorized to lend securities pursuant to subsection 5;
(c) The treasurer of the city or consolidated municipality:
(1) Establishes a policy for investment that includes provisions which set forth the procedures to be used to lend securities pursuant to this section; and
(2) Submits the policy established pursuant to subparagraph (1) to the manager of the city, consolidated municipality or other local government and prepares and submits to the manager of the city, consolidated municipality or other local government a monthly report that sets forth the securities that have been lent pursuant to this section and any other information relating thereto, including, without limitation, the terms of each agreement for the lending of those securities; and
(d) The governing body receives collateral from the borrower in the form of cash or marketable securities that are:
(1) Authorized pursuant to NRS 355.170, if the collateral is in the form of marketable securities; and
(2) At least 102 percent of the value of the securities borrowed.
3. The governing body of a city, county or consolidated municipality may enter into such contracts as are necessary to extend and manage loans pursuant to this section.
4. The total of investments made by a particular city, county or consolidated municipality with collateral received pursuant to subsection 1 or 2 must have an average weighted maturity of not more than 90 days.
5. The governing body of a city or consolidated municipality whose population is 25,000 or more but less than 150,000 shall not lend securities from its investment portfolio unless it has been authorized to do so by the State Board of Finance. The State Board of Finance shall adopt regulations that establish minimum standards for granting authorization pursuant to this subsection. Such an authorization is valid for 2 years and may be renewed by the State Board of Finance for additional 2-year periods.
6. As used in this section, “average weighted maturity” means the average length of time until the securities in which a particular city, county or consolidated municipality has invested with collateral received pursuant to subsection 1 or 2 will mature or be redeemed by their issuers, with the length of time of each individual security proportionally weighted according to the total dollar amount that the particular city, county or consolidated municipality has invested in that individual security with collateral received pursuant to subsection 1 or 2.
(Added to NRS by 1999, 925; A 2001, 1979; 2003, 823; 2007, 2523)