§ 147-69.1. Investments authorized for General Fund and Highway Funds assets. - North Carolina Statutes

§ 147‑69.1.  Investmentsauthorized for General Fund and Highway Funds assets.

(a)        The Governor andCouncil of State, with the advice and assistance of the State Treasurer, shalladopt such rules and regulations as shall be necessary and appropriate to implementthe provisions of this section.

(b)        This sectionapplies to funds held by the State Treasurer to the credit of:

(1)        The General Fund;

(2)        The Highway Fund andHighway Trust Fund.

(c)        It shall be theduty of the State Treasurer to invest the cash of the funds enumerated insubsection (b) of this section in excess of the amount required to meet thecurrent needs and demands on such funds, selecting from among the following:

(1)        Obligations of theUnited States or obligations fully guaranteed both as to principal and interestby the United States.

(2)        Obligations of theFederal Financing Bank, the Federal Farm Credit Bank, the Federal Home LoanBanks, the Federal Home Loan Mortgage Corporation, Fannie Mae, the GovernmentNational Mortgage Association, the Federal Housing Administration, the FarmersHome Administration, the United States Postal Service, the Export‑ImportBank, the International Bank for Reconstruction and Development, theInternational Finance Corporation, the Inter‑American Development Bank,the Asian Development Bank, the African Development Bank, and the Student LoanMarketing Association.

(3)        RepurchaseAgreements with respect to securities issued or guaranteed by the United Statesgovernment or its agencies or other securities eligible for investment by thissection executed by a bank or trust company or by primary or other reportingdealers to the Federal Reserve Bank of New York.

(4)        Obligations of theState of North Carolina.

(5)        Certificates ofdeposit and other time deposits of financial institutions under any of thefollowing conditions:

a.         With financialinstitutions with a physical presence in the State for the purpose of receivingcommercial or retail deposits; provided that any principal amount of suchdeposit in excess of the amount insured by the federal government or any agencythereof, be fully secured by surety bonds, or be fully collateralized; providedfurther that the rate of return or investment yield may not be less than thatavailable in the market on United States government or agency obligations ofcomparable maturity.

b.         With financialinstitutions with a physical presence inside or outside the State, inaccordance with all of the following conditions:

1.         The funds areinitially deposited through a bank or savings and loan association in the Statethat is an official depository and that is selected by the State Treasurer,provided that the rate of return or investment yield shall not be less thanthat available in the market on United States government or agency obligationsof comparable maturity.

2.         The selected bank orsavings and loan association arranges for the deposit of the funds incertificates of deposit for the account of the State in one or more federallyinsured banks or savings and loan associations wherever located, provided thatno State funds shall be deposited in a bank or savings and loan associationthat at the time holds other time deposits from the State.

3.         The full amount ofprincipal and any accrued interest of each certificate of deposit are coveredby federal deposit insurance.

4.         The selected bank orsavings and loan association acts as custodian for the State with respect tothe certificates of deposit issued for the State's account.

5.         At the same timethat the State funds are deposited and the certificates of deposit are issued,the selected bank or savings and loan association receives an amount ofdeposits from customers of other federally insured financial institutionswherever located equal to or greater than the amount of the funds invested bythe State through the selected bank or savings and loan association pursuant tothis sub‑subdivision.

(6)        Repealed by SessionLaws 1989 (Regular Session, 1990), c. 813, s. 10.

(7)        Prime qualitycommercial paper bearing the highest rating of at least one nationallyrecognized rating service and not bearing a rating below the highest by anynationally recognized rating service which rates the particular obligation.

(8)        Bills of exchange ortime drafts drawn on and accepted by a commercial bank and eligible for use ascollateral by member banks in borrowing from a federal reserve bank, providedthat the accepting bank or its holding company is either (i) incorporated inthe State of North Carolina or (ii) has outstanding publicly held obligationsbearing the highest rating of at least one nationally recognized rating serviceand not bearing a rating below the highest by any nationally recognized ratingservice which rates the particular obligations.

(9)        Asset‑backedsecurities (whether considered debt or equity) provided they bear the highestrating of at least one nationally recognized rating service and do not bear arating below the highest rating by any nationally recognized rating servicewhich rates the particular securities.

(10)      Corporate bonds andnotes provided they bear the highest rating of at least one nationallyrecognized rating service and do not bear a rating below the highest by anynationally recognized rating service which rates the particular obligation.

(d)        Unless otherwiseprovided by law, the interest or income received and accruing from all depositsor investments of such cash balances shall be paid into the State's GeneralFund, except that all interest or income received and accruing on the monthlybalance of the Highway Fund and Highway Trust Fund shall be paid into the StateHighway Fund and Highway Trust Fund. The cash balances of the several funds maybe combined for deposit or investment purposes; and when such combined depositsor investments are made, the interest or income received and accruing from alldeposits or investments shall be prorated among the funds in conformity withapplicable law and the rules and regulations adopted by the Governor andCouncil of State.

(e)        The State Treasurershall cause to be prepared quarterly statements on or before the tenth day ofFebruary, May, August, and November in each year, which shall show the amountof cash on hand, the amount of money on deposit, the name of each depository,and all investments for which he is in any way responsible. Each quarterlystatement shall be delivered to the Governor, Council of State, President ProTempore of the Senate, and Speaker of the House of Representatives; and a copyshall be posted in the office of the State Treasurer for the information of thepublic.

(f)         Repealed bySession Laws 1989 (Regular Session, 1990), c. 813, s. 10.

(g)        Repealed by SessionLaws 2001‑444, s. 1, effective October 1, 2001. (1943, c. 2; 1949, c. 213;1957, c. 1401; 1961, c. 833, s. 2.2; 1967, c. 398, s. 1969, c. 125; 1975, c.482; 1979, c. 467, s. 1; c. 717, s. 1; 1981, c. 801, ss. 1, 2; 1985, c. 313, s.3; 1987, c. 751, ss. 2‑4; 1987 (Reg. Sess., 1988), c. 882, s. 5; 1989, c.76, s. 28; c. 751, s. 7(43); 1989 (Reg. Sess., 1990), c. 813, s. 10; 1991 (Reg.Sess., 1992), c. 959, s. 75; 1993, c. 105, s. 2; 1999‑251, s. 1; 2001‑444,s. 1; 2001‑487, s. 14(m); 2005‑394, s. 1.)