TITLE 50

MUNICIPAL CORPORATIONS

CHAPTER 10

FINANCES

50-1013.  Deposit and investment of funds. The treasurer shall be required to keep all money in his hands belonging to the corporation in such place or places of deposit as shall be provided by ordinance; provided, however, that the treasurer may be directed and empowered by resolution, to invest any money in his hands in any of the following:

(a)  Revenue bonds issued by the revenue bond act.

(b)  City coupon bonds provided for under section 50-1019, Idaho Code.

(c)  Local improvement district bonds provided for under chapter 17, title 50, Idaho Code.

(d)  Time deposit accounts with public depositories.

(e)  Bonds, treasury bills, interest-bearing notes, or other obligations of the United States, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.

(f)  General obligation bonds of this state, or those for which the faith and credit of this state are pledged for the payment of principal and interest.

(g)  General obligation bonds of any county, city, metropolitan water district, municipal utility district, school district or other taxing district of this state.

(h)  Notes, bonds, debentures, or other similar obligations issued by the farm credit system or institutions forming a part thereof under the farm credit act of 1971 (12 U.S.C. sections 2001-2259) and all acts of congress amendatory thereof or supplementary thereto; in bonds or debentures of the federal home loan bank board established under the federal home loan bank act (12 U.S.C. sections 1421-1449); in bonds, debentures and other obligations of the federal national mortgage association established under the national housing act (12 U.S.C. sections 1701-1750g) as amended, and in the bonds of any federal home loan bank established under said act and in other obligations of agencies and instrumentalities of the government of the state of Idaho or of the United States.

(i)  Bonds, notes or other similar obligations issued by public corporations of the state of Idaho including, but not limited to, the Idaho state building authority, the Idaho housing authority and the Idaho water resource board, but such investment shall not extend beyond seven (7) days.

(j)  Repurchase agreements and reverse repurchase agreements covered by any legal investment for the state of Idaho or as otherwise allowed by this section, provided that reverse repurchase agreements shall only be used for the purpose of liquidity and not for leverage or speculation.

(k)  Tax anticipation bonds or notes, income and revenue anticipation bonds or notes and registered warrants of the state of Idaho or of taxing districts of the state of Idaho.

(l)  Savings accounts including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts.

(m)  Time deposit accounts and other savings accounts of state or federal savings and loan associations located within the geographical boundaries of the state in amounts not to exceed the insurance provided by the federal savings and loan corporation, including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts.

(n)  Share, savings and deposit accounts of state and federal credit unions located within the geographical boundaries of the state in amounts not to exceed the insurance provided by the national credit union share insurance fund and/or any other authorized share guaranty corporation, including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts.

(o)  Prime banker’s acceptances.

(p)  Prime commercial paper.

(q)  Money market funds, mutual funds, or any other similar funds whose portfolios consist of any allowed investment as specified in this section.

(r)  Bonds, debentures or notes of any corporation organized, controlled and operating within the United States which have, at the time of their purchase, an A rating or higher by a commonly known rating service.

History:

[50-1013, added 1967, ch. 429, sec. 173, p. 1249; am. 1970, ch. 76, sec. 1, p. 192; am. 1972, ch. 170, sec. 1, p. 420; am. 1976, ch. 74, sec. 1, p. 244; am. 1981, ch. 19, sec. 1, p. 34; am. 1983, ch. 38, sec. 1, p. 89; am. 1986, ch. 74, sec. 3, p. 222; am. 1986, ch. 88, sec. 1, p. 257; am. 1987, ch. 162, sec. 1, p. 318; am. 2001, ch. 42, sec. 1, p. 78.]