SECTIONS 16600-16609 - California Statutes

GOVERNMENT CODE

SECTION 16600-16609

16600. (a) As used in this chapter, the following definitions shall
apply:
(1) "Eligible savings and loan association" means a state or
federal savings association, as defined in Section 5102 of the
Financial Code, located in this state, insured by the Federal Savings
and Loan Insurance Corporation, and selected by the Treasurer for
the safekeeping of money belonging to or in the custody of the state.
An "eligible savings and loan association" must have received an
overall rating of not less than "satisfactory" in its most recent
evaluation by the appropriate federal financial supervisory agency of
the association's record of meeting the credit needs of the state's
communities, including low- and moderate-income neighborhoods,
pursuant to Section 2906 of Title 12 of the United States Code.
(2) "Eligible credit union" means a state or federal credit union
located in this state, insured by the National Credit Union
Administration, and selected by the Treasurer for the safekeeping of
money belonging to or in the custody of the state.
(b) An eligible savings and loan association or credit union is
eligible to receive deposits only to the extent it furnishes the
security required by this chapter.

16601. Notwithstanding Section 16502, all other money in the State
Treasury or under the control of the Treasurer belonging to or in the
custody of the state, shall, so far as possible, be deposited by the
Treasurer to the credit of the state in eligible banks as defined in
Section 16500, eligible savings and loan associations, and eligible
credit unions. Any sum in the State Treasury so deposited is deemed
to be in the State Treasury. Any other amount so deposited is deemed
to be held in trust by the Treasurer.

16602. Subject to the limitations of Article 4.5 (commencing with
Section 16480) of Chapter 3, the Treasurer shall determine what
amounts of money shall be deposited as deposits in savings and loan
associations, and credit unions, and the rates of interest to be
received.

16603. Subject to the applicable contract, the Treasurer may call
in money from deposits in savings and loan associations and credit
unions and place it in demand deposits in banks when necessary to
meet current requirements.

16604. Deposits in any savings and loan association or credit union
shall not exceed the total of its net worth.

16605. Notwithstanding Section 16506, all money belonging to or in
the custody of the state under the control of any state officer or
employee, other than the Treasurer, except petty cash funds
authorized by the Department of Finance, shall be deposited in state
or national banks in this state, state and federal savings
associations in this state, as defined in Section 5102 of the
Financial Code, and credit unions in this state, and under conditions
as the Director of Finance prescribes. Savings and loan associations
or credit unions receiving deposits shall be required to deposit
with the Treasurer the same security as is required by this chapter
for deposits made by the Treasurer.
Savings and loan associations or credit unions receiving deposits
of money from a county advanced or apportioned to it pursuant to
Section 4481 of the Food and Agricultural Code shall be required to
secure deposits in accordance with Article 2 (commencing with Section
53630) of Chapter 4 of Part 1 of Division 2 of Title 5.

16606. A state officer is not liable on his or her official bond
for losses caused by the failure of a savings and loan association or
credit union in which a deposit is made of money belonging to an
inmate of a state institution, if the officer was required or
permitted by law to act as a trustee or fiduciary with respect to the
money and if he or she made the deposit in good faith and in
accordance with law.

16607. The Treasurer is not responsible for any money deposited in
a savings and loan association or credit union pursuant to this
chapter, and while it remains so deposited.

16608. The Treasurer is responsible for the safekeeping, management
and disbursement of the certificates of deposit received and the
securities deposited with him, the interest received on deposits, and
the proceeds of any sale under this chapter. The state is
responsible for the custody and safe return of any securities so
deposited.

16609. Any state officer or employee who deposits any money
belonging to or in the custody of the state in any manner other than
as prescribed in this chapter or Chapter 4 (commencing with Section
16500) is subject to forfeiture of his office or employment.