Section 34 Deposit of public monies - Massachusetts Statutes

Section 34. (a) State officers, departments, institutions and other agencies may deposit a portion of the public monies in their possession in national banks, federal savings banks, and federal savings and loan associations, lawfully doing business within the commonwealth, and in trust companies, savings banks and cooperative banks chartered under the laws of the commonwealth, as shall be designated by the state treasurer from a list of depositories prepared by him and approved at least once in 3 months by the governor and council. The state treasurer shall not include on the list a state-chartered bank having a descriptive rating of (d) or (e) under section 14 of chapter 167 or any federally insured depository institution having an assigned rating of (C) or (D) under section 807(b)(2) of the Community Reinvestment Act of 1977, 12 U.S.C. 2901 et seq.; but the aggregate balance on deposit in any one such depository institution by the state treasurer, by a state officer of funds advanced under section 23, by a state officer, department, institution or other agency of fees or other money as referred to in section 27 of chapter 30 shall not exceed, as of the close of the business each business day, 55 per cent of the depository institution’s paid up capital, surplus, capital notes, and undivided profits in accordance with the records of the depository institution. The state treasurer may provide that the depository institution may receive additional deposits not to exceed 85 per cent of its paid up capital, surplus, capital notes, and undivided profits, if the additional deposits are subject to collateral approved by the state treasurer. Deposits of the proceeds from the sale of bonds and notes by the state treasurer shall not be subject to the 55 per cent limit for a period of 7 days from the date of the deposit or other credit to the account of the state treasurer. All certificates of deposit of the depository institution, whether issued directly to the state treasurer or purchased on the open market, shall be considered deposits within the meaning of this section. For the purpose of paying the principal or interest due on any bond, note or other obligation of the commonwealth, which is payable in the city of New York or the city of Chicago, the state treasurer may keep on deposit in those cities in a national bank, federal savings bank, federal savings and loan association, trust company, savings bank, savings and loan association, building and loan association, cooperative bank, industrial bank or other depository institution chartered and regulated under the laws of the federal government or the states of New York and Illinois, the deposits of which are insured by the Federal Deposit Insurance Corporation, approved for the purpose by the governor and council, a sum not exceeding in the aggregate $25,000; provided, that for a period of 7 days before the date of the payment, the amount may be increased by a sum sufficient to cover the same.

(b) A state treasurer who knowingly makes a deposit in violation of subsection (a) shall be guilty of misconduct and mal-administration in his office within the meaning of the constitution, any other officer who knowingly makes a deposit in violation of subsection (a) shall be guilty of misconduct and mal-administration in his office, and a depository institution knowingly receiving a deposit in violation of subsection (a) shall be disqualified from receiving such monies for the period of 3 years from the date of the deposit.

(c) All interest received on any deposits under this section shall be paid to the commonwealth.