356.133 - Collateral required for uninsured deposits: Types; pledge; fair market value; review; reports by depository; deposit of additional securities.
356.133 Collateral required for uninsured deposits: Types; pledge; fair market value; review; reports by depository; deposit of additional securities.
1. All money deposited by a county treasurer that is not within the limits of insurance provided by an instrumentality of the United States must be secured by collateral composed of the following types of securities:
(a) United States treasury notes, bills, bonds or obligations as to which the full faith and credit of the United States are pledged for the payment of principal and interest, including the guaranteed portions of Small Business Administration loans if the full faith and credit of the United States is pledged for the payment of the principal and interest;
(b) Bonds of this state;
(c) Bonds of a county, municipality or school district within this state;
(d) Mortgage-backed pass-through securities guaranteed by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Government National Mortgage Association;
(e) Instruments in which the county is authorized by NRS 355.170 to invest; or
(f) Irrevocable letters of credit from any Federal Home Loan Bank with the State Treasurer named as the beneficiary.
2. Collateral deposited by the depository bank, credit union or savings and loan association must be pledged with the county treasurer or with a Federal Home Loan Bank, or any insured bank, insured credit union or insured savings and loan association, other than the depository bank, credit union or savings and loan association, which will accept the securities in trust for the purposes of this section.
3. The fair market value of the deposit of securities as collateral by each depository bank, credit union or savings and loan association must be at least the amount required pursuant to NRS 356.300 to 356.390, inclusive.
4. All securities to be used as such collateral are subject to review by the county treasurer and the board of county commissioners. The depository bank, credit union or savings and loan association shall submit reports to the State Treasurer as required pursuant to NRS 356.300 to 356.390, inclusive. The State Treasurer will provide periodic reports to the county treasurer showing the securities which constitute the collateral and their fair market value.
5. The county treasurer or the board of county commissioners may, from time to time, require the deposit of additional securities as collateral if, in their judgment, the additional securities are necessary to secure the county treasurer’s deposit.
(Added to NRS by 1999, 192; A 2003, 20th Special Session, 287)