51-7-7 - Securities and evidence of deposits and investments -- Custody -- Deposit for safekeeping.
51-7-7. Securities and evidence of deposits and investments -- Custody -- Depositfor safekeeping.
(1) (a) (i) The public treasurer shall have custody of all securities purchased or held andall evidence of deposits and investments of public funds.
(ii) All securities shall be delivered versus payment to the public treasurer or to thetreasurer's safekeeping bank.
(b) The public treasurer may deposit any of these securities with a bank or trust companyto be held in safekeeping by that custodian.
(c) The provisions of this section do not apply to securities acquired under anonqualifying repurchase agreement as defined in Section 51-7-3.
(d) The provisions of this section apply to any book-entry-only security the ownershiprecords of which are maintained with a securities depository, in the Federal Book Entry systemauthorized by the U.S. Department of Treasury, or in the book-entry records of the issuer, asfollows:
(i) the direct ownership of the security by the public treasurer shall be reflected in thebook-entry records and represented by a receipt, confirmation, or statement issued to the publictreasurer by the custodian of the book-entry system; or
(ii) the ownership of the security by the public treasurer's custodial bank or trust companyshall be reflected in the book-entry records and the public treasurer's ownership shall berepresented by a receipt, confirmation, or statement issued by the custodial bank or trustcompany.
(2) The public treasurer may maintain accounts with money center banks only for thepurposes of settling investment transactions, safekeeping, and collecting those investments.
Amended by Chapter 285, 1992 General Session