§ 107-A — Security for public deposits

§ 107-a. Security for public deposits. 1. As used in this section, the\nfollowing terms shall have the following meanings:\n (a) "Public depositary". A bank, trust company or other depositary,\nwhether state or federally chartered, authorized to accept and hold\ndeposits of public funds under the laws of this state.\n (b) "Public funds". Funds of a political subdivision.\n (c) "Political subdivision". Any municipal corporation, school\ndistrict, board of cooperative educational services, district\ncorporation, special improvement district governed by a separate board\nof commissioners or a public library.\n (d) "Public deposits". Deposits of public funds in a public depositary\nwhich are available for all uses generally permitted by the public\ndepositary to the depositing political subdivision for actually and\nfinally collected funds under the public depositary's account agreement\nor policies.\n 2. Whenever a political subdivision is required by any general or\nspecial law to obtain a pledge of assets or other security from a public\ndepositary for its public deposits and such political subdivision has\nentered into a written agreement with such public depositary relating to\nsuch public deposits and has provided written notice in a form specified\nby such written agreement to the public depositary of such public\ndeposits, the public depositary shall comply with the provisions of such\nlaw at the time it accepts any public deposits from the political\nsubdivision; provided, however, that where the public depositary and\npolitical subdivision have agreed in writing as to the maximum amount of\nsecurity which such depositary shall provide, and the terms, conditions\nand timing of the provisions of security pursuant thereto, and the\ndepositary has at all times complied with such agreement, it shall be\ndeemed to have complied with the provisions of such law for so long as\nit shall comply with such agreement.\n