86.1020. Board to act as trustee of certain funds--powers of the board. - Missouri Statutes

Board to act as trustee of certain funds--powers of the board.

86.1020. 1. The retirement board shall act as trustee of the fundscreated by or collected under the provisions of sections 86.900 to 86.1280.With appropriate safeguards against loss by the retirement system, theboard may designate one or more banks or trust companies to serve as adepository of retirement system funds, and as an intermediary in theinvestment of those funds and payment of system obligations. The boardshall promptly deposit the funds with any such designated bank or trustcompany.

2. The retirement board shall have power, in the name and on behalfof the retirement pension system, to purchase, acquire, hold, invest, lend,lease, sell, assign, transfer, and dispose of all property, rights, andsecurities, and enter into written contracts, all as may be necessary orproper to carry out the purposes of sections 86.900 to 86.1280. Noinvestment transaction authorized by the retirement board shall be handledby any company or firm in which a member of the board has an interest, norshall any member of the board profit directly or indirectly from any suchinvestment. All investments shall be made for the account of theretirement system, and any securities or other properties obtained by theretirement board may be held by a custodian in the name of the retirementsystem, or in the name of a nominee in order to facilitate the expeditioustransfer of such securities or other properties. Such securities or otherproperties may be held by such custodian in bearer form or in book entryform. The retirement system is further authorized to deposit, or havedeposited for its account, eligible securities in a central depositorysystem or clearing corporation or in a federal reserve bank under a bookentry system as defined in the uniform commercial code, sections 400.8-102and 400.8-117, RSMo. When such eligible securities of the retirementsystem are so deposited with the central depository system they may bemerged and held in the name of the nominee of such securities depositoryand title to such securities may be transferred by bookkeeping entry on thebooks of such securities depository or federal reserve bank withoutphysical delivery of the certificates or documents representing suchsecurities.

3. The retirement board may contract with a bank or trust company toact as the custodian of bonds and securities acquired by the board, inwhich case the retirement board may authorize such custodian bank or trustcompany to order purchases, loans or sales of investments by such custodianbank or trust company, and may also appoint one or more investment managersto manage investments of the retirement pension system and in the course ofsuch management to order purchases, loans, or sales of investments by suchcustodian bank or trust company, subject to such limitations, reportingrequirements and other terms and restrictions as the retirement board mayinclude in the terms of each such appointment. The income from investmentsshall be credited to the funds of the retirement system at frequentintervals satisfactory to the retirement board. All payments from thefunds shall be made by the bank or trust company only upon orders signed bythe secretary and treasurer of the retirement board, except as otherwiseprovided in this subsection. No order shall be drawn unless it shall havepreviously been allowed by a specific or an ongoing generalized resolutionof the retirement board. In the case of payments for benefits, services,supplies or similar items in the ordinary course of business, such boardresolutions may be ongoing generalized authorizations, provided that eachpayment other than payments to members or beneficiaries for benefits shallbe reported to the board at its next following meeting and shall be subjectto ratification and approval by the board.

4. Before assuming the duties of the office, the secretary andtreasurer shall each be bonded for an amount determined by the retirementboard at the cost of the retirement system, conditioned upon the faithfulperformance of the duties as such officer, and to account for all moneys,securities, and property which may come into their respective hands orunder their respective control by virtue of such office, with a corporatesurety duly licensed to transact business in this state. Such bonds shallbe subject to the approval of the presiding judge of the circuit court ofthe county in which such cities are located.

(L. 2005 H.B. 323)