SECTIONS 7602-7605 - California Statutes

GOVERNMENT CODE

SECTION 7602-7605

7602. A state agency which is authorized pursuant to Section 22312
of the Education Code and Sections 16481 and 20208.5 of the
Government Code may enter into security loan agreements with
broker-dealers and with any state or national banks for the purpose
of prudently supplementing the income normally received from
investments.

7603. All loans of securities shall be made pursuant to one of the
standardized security loan agreement forms, as developed by the
administrators of the State Pooled Investment Account (as authorized
by Section 16481 of the Government Code) or the Public Employees
Retirement System or the State Teachers' Retirement System and as
approved by the Commissioner of Corporations.

7604. In the event of a loss in the reacquisition of loaned
securities, the responsible state agency shall make a written report
of the loss to the Legislature and the State Auditor as soon as
possible, but not later than 30 days after the incurrence of that
loss.

7605. Each state agency which enters into security loan agreements
shall (a) maintain detailed records of all security loans, (b)
develop controls and reports to monitor the conduct of the
transactions, and (c) publicize the net results of the security loan
transaction separate from the results of other investment activities.