Section 386:57 Security for Certain Deposits of Public Funds.
I. Any bank or association chartered by this state to engage in a banking business shall have the power to pledge securities to secure deposits of public funds by the state or any of its officers, agencies or instrumentalities, or by any of the political subdivisions of the state or their officers, agencies or instrumentalities. In lieu of such collateralization, such banks and associations are authorized to secure such public deposits by surety bonds and to pledge securities to the surety in connection therewith. Any such deposit of public funds in any such bank or association may be evidenced by an agreement in such form and upon such terms and conditions as may be agreed upon by the depositing public authority and such bank or association. The bank commissioner may by rule limit the aggregate amount of securities which may be pledged by such banks and associations consistent with safe and sound banking, based upon the adequacy of the surplus of such bank or association and other criteria deemed pertinent by the bank commissioner.
II. The bank commissioner shall by rules adopted under RSA 541-A define and classify by risk the nature of securities appropriate for collateral. There is created an advisory committee on collateralization of public funds to assist the bank commissioner in the development of such rules. The committee shall consist of the following: the state treasurer; 2 members of the New Hampshire Bankers Association, appointed by the president of the association; 2 members of the New Hampshire Government Finance Officers Association, appointed by the president of the association; and one public member recommended by both associations and appointed by the bank commissioner.
Source. 1979, 165:1. 1985, 55:11. 1991, 383:8. 2001, 54:7, eff. Jan. 1, 2002.