SECTIONS 16560-16565 - California Statutes

GOVERNMENT CODE

SECTION 16560-16565

16560. The Treasurer shall enter into such contracts with such
depositaries as in his judgment will be to the public advantage so to
do. The contracts shall fix the duration of deposits and the rates
of interest to be received, if any, the interest payment dates, and
provide conditions for their withdrawal, repayment, and security.

16561. In order to obtain as high rates of interest as possible,
the contracts may contain any conditions necessary to conform with
Section 19 of the Federal Reserve Act, as amended, and with
regulations established pursuant thereto by the Board of Governors of
the Federal Reserve System, and demand deposits shall be subject to
withdrawal at any time upon demand of the Treasurer.

16562. The contracts covering demand state deposits shall provide
that each depositary shall render daily to the Treasurer a statement
of the account showing the date of deposits, payments or withdrawals
therefrom made during the day and the balance or amount of money of
the state held by it at the close of the day. In the event that such
demand deposits are interest bearing, the contract also shall provide
that on the interest payment dates the depositary shall also furnish
a statement showing the amount of interest due thereon together with
the payment of the interest due.
The contracts covering time or interest-bearing term deposits
shall provide that the interest to be paid by the depositary bank
shall be paid upon the expiration of the certificate or certificates
of deposit issued as a part of the contract. The contract may also
provide for periodic interest payments during the term of the
deposit. The contract governing time deposits shall also provide that
the amounts of interest shall be reported by the depositary bank at
the time of payment of the interest, by statement showing the
balances or amounts of money of the state held by it during the
period and the amount of accrued interest thereon.

16563. The contracts shall be executed by the depositaries in
triplicate. The Treasurer shall file one copy of each contract with
the Controller.

16564. At the time of depositing State money in any bank,
designated as a depositary, the Treasurer shall take and preserve a
receipt, certificate of deposit, or such other evidence of the
deposit as the Treasurer may require, stating the amount deposited
and referring to the contract made between the depositary bank and
the Treasurer.

16565. On the order of the Treasurer, depositary banks shall
handle, collect and pay all checks, drafts and other exchange in the
same manner and under the same conditions as checks, drafts, and
other exchange of other depositors are handled, collected and paid.