§ 147-79. Deposits to be secured; reports of depositories. - North Carolina Statutes

§147‑79.  Deposits to be secured; reports of depositories.

(a)        The amount of fundsdeposited by the State Treasurer in an official depository shall be adequatelysecured by deposit insurance, surety bonds, or investment securities of suchnature, in such amounts, and in such manner, as may be prescribed by rule orregulation of the State Treasurer with the approval of the Governor and Councilof State.  No security is required for the protection of funds remitted to andreceived by a bank or trust company designated by the State Treasurer underG.S. 142‑1 and acting as paying agent for the payment of the principal ofor interest on bonds or notes of the State.

(b)        Each officialdepository having deposits required to be secured by subsection (a) of thissection may be required to report to the State Treasurer on January 1 and July1 of each year (or such other dates as he may prescribe) a list of all suretybonds or investment securities securing such deposits.  If the State Treasurerfinds at any time that any funds of the State are not properly secured, heshall so notify the depository.  Upon such notification, the depository shallcomply with the applicable law or regulations forthwith.

(c)        Violation of theprovisions of this section shall be a Class 1 misdemeanor. (1933,c. 461, ss. 1, 1 1/2; 1979, c. 637, s. 3; 1993, c. 539, s. 1056; 1994, Ex.Sess., c. 24, s. 14(c).)