35-323.01 - Arizona Statutes

35-323.01. Investment of government monies in certificates of deposit; conditions; definition A. If an investing entity invests in certificates of deposit pursuant to section 9-492, subsection C, section 15-1025, subsection B, paragraph 7, section 35-313, subsection A, paragraph 14 or section 35-323, subsection A, paragraph 2, the investing entity in each case shall invest those monies in accordance with all of the following conditions: 1. The monies are initially invested through an eligible depository in this state selected by the investing entity. 2. The selected eligible depository arranges for the deposit of the monies in certificates of deposit in one or more federally insured banks or savings and loan associations wherever located, for the account of the investing entity. 3. The full amount of principal and any accrued interest of each certificate of deposit is insured by the federal deposit insurance corporation. 4. The selected eligible depository acts as custodian for the investing entity with respect to the certificates of deposit issued for its account. 5. At the same time that the investing entity's monies are deposited and the certificates of deposit are issued, the selected eligible depository receives an amount of deposits from customers of other federally insured financial institutions equal to or greater than the amount of the monies initially invested by the investing entity through the selected eligible depository. B. Monies invested in accordance with all of the conditions prescribed in this section are not subject to any security or collateral requirements. C. For the purposes of this section, "investing entity" means this state, a political subdivision, the governing body of a municipality or the governing body of a school district.