51-7-3 - Definitions.
51-7-3. Definitions.
As used in this chapter:
(1) "Agent" means "agent" as defined in Section 61-1-13.
(2) "Certified dealer" means:
(a) a primary reporting dealer recognized by the Federal Reserve Bank of New York whois certified by the director as having met the applicable criteria of council rule; or
(b) a broker dealer who:
(i) has and maintains an office and a resident registered principal in the state;
(ii) meets the capital requirements established by council rules;
(iii) meets the requirements for good standing established by council rule; and
(iv) is certified by the director as meeting quality criteria established by council rule.
(3) "Certified investment adviser" means a federal covered adviser, as defined in Section61-1-13, or an investment adviser, as defined in Section 61-1-13, who is certified by the directoras having met the applicable criteria of council rule.
(4) "Commissioner" means the commissioner of financial institutions.
(5) "Council" means the State Money Management Council created by Section 51-7-16.
(6) "Director" means the director of the Utah State Division of Securities of theDepartment of Commerce.
(7) (a) "Endowment funds" means gifts, devises, or bequests of property of any kinddonated to a higher education institution from any source.
(b) "Endowment funds" does not mean monies used for the general operation of a highereducation institution that are received by the higher education institution from:
(i) state appropriations;
(ii) federal contracts;
(iii) federal grants;
(iv) private research grants; and
(v) tuition and fees collected from students.
(8) "First tier commercial paper" means commercial paper rated by at least two nationallyrecognized statistical rating organizations in the highest short-term rating category.
(9) "Funds functioning as endowments" means funds, regardless of source, whose corpusis intended to be held in perpetuity by formal institutional designation according to theinstitution's policy for designating those funds.
(10) "GASB" or "Governmental Accounting Standards Board" means the GovernmentalAccounting Standards Board that is responsible for accounting standards used by public entities.
(11) "Hard put" means an unconditional sell-back provision or a redemption provisionapplicable at issue to a note or bond, allowing holders to sell their holdings back to the issuer orto an equal or higher-rated third party provider at specific intervals and specific pricesdetermined at the time of issuance.
(12) "Higher education institution" means the institutions specified in Section53B-1-102.
(13) "Investment adviser representative" means "investment adviser representative" asdefined in Section 61-1-13.
(14) (a) "Investment agreement" means any written agreement that has specificallynegotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate.
(b) "Investment agreement" includes any agreement to supply investments on one or
more future dates.
(15) "Local government" means a county, municipality, school district, local districtunder Title 17B, Limited Purpose Local Government Entities - Local Districts, special servicedistrict under Title 17D, Chapter 1, Special Service District Act, or any other politicalsubdivision of the state.
(16) "Market value" means market value as defined in the Master RepurchaseAgreement.
(17) "Master Repurchase Agreement" means the current standard Master RepurchaseAgreement approved by the Public Securities Association or by any successor organization.
(18) "Maximum amount" means, with respect to qualified depositories, the total amountof:
(a) deposits in excess of the federal deposit insurance limit; and
(b) nonqualifying repurchase agreements.
(19) "Money market mutual fund" means an open-end managed investment fund:
(a) that complies with the diversification, quality, and maturity requirements of Rule 2a-7or any successor rule of the Securities and Exchange Commission applicable to money marketmutual funds; and
(b) that assesses no sales load on the purchase of shares and no contingent deferred salescharge or other similar charges, however designated.
(20) "Nationally recognized statistical rating organization" means an organization thathas been designated as a nationally recognized statistical rating organization by the Securities andExchange Commission's Division of Market Regulation.
(21) "Nonqualifying repurchase agreement" means a repurchase agreement evidencingindebtedness of a qualified depository arising from the transfer of obligations of the UnitedStates Treasury or other authorized investments to public treasurers that is:
(a) evidenced by a safekeeping receipt issued by the qualified depository;
(b) included in the depository's maximum amount of public funds; and
(c) valued and maintained at market value plus an appropriate margin collateralrequirement based upon the term of the agreement and the type of securities acquired.
(22) "Operating funds" means current balances and other funds that are to be disbursedfor operation of the state government or any of its boards, commissions, institutions,departments, divisions, agencies, or other similar instrumentalities, or any county, city, schooldistrict, political subdivision, or other public body.
(23) "Permanent funds" means funds whose principal may not be expended, the earningsfrom which are to be used for purposes designated by law.
(24) "Permitted depository" means any out-of-state financial institution that meets qualitycriteria established by rule of the council.
(25) "Public funds" means monies, funds, and accounts, regardless of the source fromwhich the monies, funds, and accounts are derived, that are owned, held, or administered by thestate or any of its boards, commissions, institutions, departments, divisions, agencies, bureaus,laboratories, or other similar instrumentalities, or any county, city, school district, politicalsubdivision, or other public body.
(26) (a) "Public monies" means "public funds."
(b) "Public monies," as used in Article VII, Sec. 15, Utah Constitution, means the sameas "state funds."
(27) "Public treasurer" includes the state treasurer and the official of any state board,commission, institution, department, division, agency, or other similar instrumentality, or of anycounty, city, school district, political subdivision, or other public body who has the responsibilityfor the safekeeping and investment of any public funds.
(28) "Qualified depository" means a Utah depository institution or an out-of-statedepository institution, as those terms are defined in Section 7-1-103 that is authorized to conductbusiness in this state under Section 7-1-702 or Title 7, Chapter 19, Acquisition of FailingDepository Institutions or Holding Companies, whose deposits are insured by an agency of thefederal government and that has been certified by the commissioner of financial institutions ashaving met the requirements established under this chapter and the rules of the council to beeligible to receive deposits of public funds.
(29) "Qualifying repurchase agreement" means a repurchase agreement evidencingindebtedness of a financial institution or government securities dealer acting as principal arisingfrom the transfer of obligations of the United States Treasury or other authorized investments topublic treasurers only if purchased securities are:
(a) delivered to the public treasurer's safekeeping agent or custodian as contemplated bySection 7 of the Master Repurchase Agreement; and
(b) valued and maintained at market value plus an appropriate margin collateralrequirement based upon the term of the agreement and the type of securities acquired.
(30) "Securities division" means Utah's Division of Securities created within theDepartment of Commerce by Section 13-1-2.
(31) "State funds" means:
(a) public monies raised by operation of law for the support and operation of the stategovernment; and
(b) all other monies, funds, and accounts, regardless of the source from which themonies, funds, or accounts are derived, that are owned, held, or administered by the state or anyof its boards, commissions, institutions, departments, divisions, agencies, bureaus, laboratories,or other similar instrumentalities.
Amended by Chapter 360, 2008 General Session