51-7-19 - Increase in deposits of public funds -- Authorization.
51-7-19. Increase in deposits of public funds -- Authorization.
(1) The commissioner of financial institutions may, with the approval of the council:
(a) increase for a period not to exceed 90 days the amount of public funds any qualifieddepository may hold whenever additional deposit resources are required in connection with theflotation, conversion, or redemption of a bond issue, for initial deposits of tax collections ornewly received federal money; and
(b) authorize a qualified depository to hold deposits of public funds in excess of themaximum to which the depository would otherwise be entitled to hold under the rules of thecouncil, if the council finds that such excess deposits are necessary or advisable to promote theeconomic welfare of the area in which the depository is located.
(2) Any increase in deposits of public funds authorized by the commissioner underSubsections (1)(a) or (1)(b) shall be secured by a pledge of collateral as prescribed in Subsection51-7-18.1(5)(b) to the extent that such increased deposit exceeds the then current maximum forinsurance of accounts by the applicable federal deposit insuring agency.
Amended by Chapter 30, 1992 General Session