Treasurer; duties; safekeeping of securities; warrants of financial officers; earnings; exemptions; responsibilities

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35-327. Treasurer; duties; safekeeping of securities; warrants of financial officers; earnings; exemptions; responsibilities

A. In investing trust monies, the responsible financial officer shall draw a warrant, check or electronic funds transfer voucher at the direction of the treasurer, payable from the proper fund to pay for the security purchased.

B. A treasurer is responsible for the safekeeping of all securities acquired by the treasurer under this section. Any such securities may be deposited for safekeeping with any trust company that has its principal place of business in this state or that is qualified to do a trust business in this state.

C. A treasurer shall regularly account for, itemize and inventory according to general public fund accounting practices all securities coming lawfully into the treasurer's possession. Such practice shall be audited by the auditor general for the counties and by an independent auditor for cities and towns at the time of the regular audit as prescribed by law.

D. The treasurer, at the expense of the subdivision and with the approval of the governing board, may enter into an agreement with the trust department of any bank or banks authorized to do a trust business in this state for safekeeping and handling securities of which the treasurer is lawful custodian. The agreement shall be entered into under terms and conditions that secure the proper safeguarding, inventory, withdrawal and handling of the securities. Access to, deposits of or withdrawals of the securities from any place of deposit selected by the officers shall not be permitted or made except as the terms of the agreement provide. The agreement need not require that securities be physically located in this state if the securities are represented by safekeeping receipts issued for the account of the treasurer by a federal reserve bank or any bank located in a reserve city whose combined capital and surplus on the date of the safekeeping receipt is $10, 000, 000 or more.

E. When securities acquired under this section mature and become due and payable, the treasurer shall present them for payment according to their terms and collect the monies payable on them. The monies collected shall be treated as subdivision monies subject to reinvestment or operating needs or trust monies subject to the provisions of the trust.

F. The treasurer shall allocate pooled income earnings on a pro rata basis to agency pool participants. Involuntary pool participants shall have the income earnings for their monies deposited in the general fund of the collecting entity.

G. As provided in this article, the governing body of any subdivision or of any agency, department, board or commission of this state or of any subdivision, by adopting a resolution of continuing effect, may authorize the treasurer to invest monies collected for the governing body.

H. The investment of public monies as provided in this section is exempt from section 35-142, subsection B and sections 35-154, 35-181.01, 35-181.02, 35-182, 35-183, 35-184, 35-185, 35-185.01, 35-185.02, 35-186, 35-187, 35-188, 35-189, 35-190, 35-191, 35-192, 35-192.01, 35-192.02, 35-193, 35-193.02 and 41-732.

I. A treasurer is responsible for safekeeping, managing and disbursing any investment made and any interest received in compliance with this article.


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