SECTIONS 16630-16634 - California Statutes

GOVERNMENT CODE

SECTION 16630-16634

16630. The Treasurer shall enter into contracts with savings and
loan associations as in his or her 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 date, and provide conditions for their withdrawal, repayment,
and security.

16631. In order to obtain as high rates of interest as possible,
the contracts may contain any conditions necessary to conform with
Section 5B of the Federal Home Loan Bank Act, as amended (12 USC Sec.
1425 (b)), and with regulations established pursuant thereto by the
Federal Home Loan Bank Board.

16632. The contracts covering deposits shall provide that the
interest to be paid by the savings and loan association or credit
union 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 deposits shall also
provide that the amounts of interest shall be reported by the savings
and loan association or credit union at the time of payment of the
interest, by statement showing the balances or amounts of money of
the state held by the association or credit union during the period
and the amount of accrued interest thereon.

16633. The contracts shall be executed by the savings and loan
associations and credit unions in triplicate. The Treasurer shall
file one copy of each contract with the Controller.

16634. At the time of depositing state money in any savings and
loan association or credit union, designated as a depository, the
Treasurer shall take and preserve a receipt, certificate of deposit,
or any other evidence of the deposit as the Treasurer may require,
stating the amount deposited and referring to the contract made
between the depository savings and loan association or credit union
and the Treasurer.