2005 Nevada Revised Statutes - Chapter 355 — Public Investments

CHAPTER 355 - PUBLIC INVESTMENTS

GENERAL PROVISIONS

NRS 355.005 Regulationsof State Treasurer.

STATE BOARD OF FINANCE

NRS 355.010 Creation;members.

NRS 355.020 Salaryfor appointive members; compensation for members and employees.

NRS 355.030 Legaladviser; Secretary.

NRS 355.040 Records.

NRS 355.045 Generalduties.

INVESTMENTS AND LOANS FROM STATE PERMANENT SCHOOL FUND

NRS 355.050 StateTreasurer charged with investment of money in Fund.

NRS 355.060 Authorizedand prohibited investments.

NRS 355.070 Determinationsto be made before investment; opinion of Attorney General.

NRS 355.080 Restrictionson investment in county bonds.

NRS 355.090 Conversionof bonds or securities into cash; reinvestment.

NRS 355.100 Loanson agricultural lands: Abstract; appraisal.

NRS 355.110 Noteand mortgage: Execution and recording; provisions.

OTHER AUTHORIZED STATE INVESTMENTS AND LOANS

NRS 355.120 Investmentin farm mortgage loans, farm loan bonds and other obligations issued by federalland banks and banks for cooperatives; limitations.

NRS 355.130 Loansto local governments.

NRS 355.135 Lendingof securities from state investment portfolio.

NRS 355.140 Authorizedand prohibited investments of state money.

NRS 355.145 Standardof care for investments made pursuant to NRS355.140.

NRS 355.150 Determinationsto be made before investment; opinion of Attorney General.

NRS 355.160 Purposeof NRS 355.140 and 355.150.

INVESTMENTS AND LOANS BY LOCAL GOVERNMENTS

NRS 355.165 LocalGovernment Pooled Long-Term Investment Account: Creation; administration;applicability of NRS 355.167; permissibleinvestments; assessment of costs; computation of interest; establishment of subaccounts.

NRS 355.167 LocalGovernment Pooled Investment Fund: Creation; administration; permissibleinvestments; permissible loans; written request for withdrawal by localgovernment; interest; regulations.

NRS 355.168 Poolingof money of local governments within county for investment.

NRS 355.169 Legalaction by county to recover investment; expenses.

NRS 355.170 Authorizedinvestments; disposition of interest.

NRS 355.171 Additionalauthorized investments for counties, cities and school districts; exceptions.

NRS 355.172 Possessionof securities purchased by or for local government; security interest in lieuof possession.

NRS 355.175 Authorityfor investments; priority in case of conflicting orders concerning same money;disposition of interest.

NRS 355.176 Investmentof money held pursuant to deferred compensation plan.

NRS 355.177 Investmentin own securities or interim warrants prohibited.

NRS 355.178 Loansfrom investment portfolio of certain counties or cities.

INVESTMENT IN BONDS OF HOME OWNERS LOAN CORPORATION ANDFEDERAL HOME LOAN BANK; LOANS AND ADVANCES INSURED BY FEDERAL HOUSINGADMINISTRATOR

NRS 355.180 Bondsof Home Owners Loan Corporation and Federal Home Loan Bank are legalinvestments.

NRS 355.190 Loansand advances of credit by Federal Housing Administrator.

NRS 355.200 Depositarybonds.

INVESTMENT OF MONEY DEPOSITED IN COURT

NRS 355.210 Investmentof money deposited in court: When permitted; authorized investments.

_________

GENERAL PROVISIONS

NRS 355.005 Regulationsof State Treasurer. The State Treasurer shalladopt regulations which he deems necessary to carry out his duties pursuant tothe provisions of this chapter.

(Added to NRS by 1995, 407)

STATE BOARD OF FINANCE

NRS 355.010 Creation;members.

1. The State Board of Finance is hereby created.

2. The State Board of Finance shall consist of theGovernor, the State Controller, the State Treasurer and two other members to beappointed by the Governor for terms of 4 years each.

3. At least one of the members appointed by theGovernor shall be actively engaged in commercial banking in this state.

[Part 1:212:1917; A 1919, 284; 1919 RL p. 3146; NCL 6962] + [Part 1:93:1919; 1919 RL p. 3109; NCL 6956] + [Part 2:93:1919; 1919RL p. 3109; NCL 6957](NRS A 1969, 1200)

NRS 355.020 Salaryfor appointive members; compensation for members and employees.

1. The two members appointed by the Governor are eachentitled to receive a salary of not more than $80 per day, as fixed by theBoard, for their services while actually engaged in the performance of theirduties as members of the Board.

2. While engaged in the business of the Board, eachmember and employee of the Board is entitled to receive the per diem allowanceand travel expenses provided for state officers and employees generally.

[Part 2:93:1919; 1919 RL p. 3109; NCL 6957](NRS A1969, 1200; 1975, 298; 1981, 1980; 1989, 1712)

NRS 355.030 Legaladviser; Secretary.

1. The Attorney General is the legal adviser of theState Board of Finance.

2. The Chief Deputy State Treasurer is ex officioSecretary of the State Board of Finance.

[3:93:1919; 1919 RL p. 3110; NCL 6958] + [4:93:1919;1919 RL p. 3111; NCL 6959](NRS A 1969, 1201; 1977, 561)

NRS 355.040 Records. The State Board of Finance shall keep a permanent recordof all its meetings, in which record shall be:

1. Recorded the aye and nay vote of the members of theBoard upon all questions presented to the Board.

2. Kept all opinions of the Attorney General asrequired by the provisions of this chapter.

[3:212:1917; 1919 RL p. 3147; NCL 6964]

NRS 355.045 Generalduties. The State Board of Finance shallreview and approve or disapprove the policies established by the StateTreasurer for investment of money of the State and of money in the LocalGovernment Pooled Investment Fund. The Board shall review both sets of policiesat least every 4 months.

(Added to NRS by 1979, 723; A 1981, 496; 1997, 1282)

INVESTMENTS AND LOANS FROM STATE PERMANENT SCHOOL FUND

NRS 355.050 StateTreasurer charged with investment of money in Fund. TheState Treasurer shall have charge of all the investments of money and the saleof all securities of the State Permanent School Fund.

[Part 1:212:1917; A 1919, 284; 1919 RL p. 3146; NCL 6962](NRS A 1979, 724)

NRS 355.060 Authorizedand prohibited investments.

1. The State Controller shall notify the StateTreasurer monthly of the amount of uninvested money in the State PermanentSchool Fund.

2. Whenever there is a sufficient amount of money forinvestment in the State Permanent School Fund, the State Treasurer shallproceed to negotiate for the investment of the money in:

(a) United States bonds.

(b) Obligations or certificates of the Federal NationalMortgage Association, the Federal Home Loan Banks, the Federal Home LoanMortgage Corporation, the Federal Farm Credit Banks Funding Corporation or theStudent Loan Marketing Association, whether or not guaranteed by the UnitedStates.

(c) Bonds of this state or of other states.

(d) Bonds of any county of the State of Nevada.

(e) United States treasury notes.

(f) Farm mortgage loans fully insured and guaranteed bythe Farmers Home Administration of the United States Department of Agriculture.

(g) Loans at a rate of interest of not less than 6percent per annum, secured by mortgage on agricultural lands in this state ofnot less than three times the value of the amount loaned, exclusive ofperishable improvements, of unexceptional title and free from all encumbrances.

(h) Money market mutual funds that:

(1) Are registered with the Securities andExchange Commission;

(2) Are rated by a nationally recognized ratingservice as AAA or its equivalent; and

(3) Invest only in securities issued orguaranteed as to payment of principal and interest by the Federal Government,or its agencies or instrumentalities, or in repurchase agreements that arefully collateralized by such securities.

(i) Common or preferred stock of a corporation createdby or existing under the laws of the United States or of a state, district orterritory of the United States, if:

(1) The stock of the corporation is:

(I) Listed on a national stock exchange;or

(II) Traded in the over-the-countermarket, if the price quotations for the over-the-counter stock are quoted bythe National Association of Securities Dealers Automated Quotations System(NASDAQ);

(2) The outstanding shares of the corporationhave a total market value of not less than $50,000,000;

(3) The maximum investment in stock is notgreater than 50 percent of the book value of the total investments of the StatePermanent School Fund;

(4) Except for investments made pursuant toparagraph (k), the amount of an investment in a single corporation is notgreater than 3 percent of the book value of the assets of the State PermanentSchool Fund; and

(5) Except for investments made pursuant toparagraph (k), the total amount of shares owned by the State Permanent SchoolFund is not greater than 5 percent of the outstanding stock of a singlecorporation.

(j) A pooled or commingled real estate fund or a realestate security that is managed by a corporate trustee or by an investmentadvisory firm that is registered with the Securities and Exchange Commission,either of which may be retained by the State Treasurer as an investmentmanager. The shares and the pooled or commingled fund must be held in trust.The total book value of an investment made under this paragraph must not at anytime be greater than 5 percent of the total book value of all investments ofthe State Permanent School Fund.

(k) Mutual funds or common trust funds that consist ofany combination of the investments listed in paragraphs (a) to (j), inclusive.

3. The State Treasurer shall not invest any money inthe State Permanent School Fund pursuant to paragraph (i), (j) or (k) ofsubsection 2 unless the State Treasurer obtains a judicial determination thatthe proposed investment or category of investments will not violate theprovisions of Section 9 of Article 8 of the Constitution of the State ofNevada. The State Treasurer shall contract for the services of independentcontractors to manage any investments of the State Treasurer made pursuant toparagraph (i), (j) or (k) of subsection 2. The State Treasurer shall establishsuch criteria for the qualifications of such an independent contractor as areappropriate to ensure that each independent contractor has expertise in themanagement of such investments.

4. In addition to the investments authorized bysubsection 2, the State Treasurer may make loans of money from the StatePermanent School Fund to school districts pursuant to NRS 387.526.

5. No part of the State Permanent School Fund may beinvested pursuant to a reverse-repurchase agreement.

[Part 2:212:1917; A 1925, 221; 1919 RL p. 3146; NCL 6963] + [2a:212:1917; added 1953, 304](NRS A 1969, 822; 1979, 724; 1989, 2178;1991, 175; 1993, 2282; 1997, 2713, 2879; 1999, 599; 2001, 2291)

NRS 355.070 Determinationsto be made before investment; opinion of Attorney General.

1. Except as otherwise provided in subsection 3, theState Treasurer shall:

(a) Make diligent inquiry as to the financial standingand responsibility of any state, county or person in whose bonds or securitieson agricultural lands he proposes to invest.

(b) Require the Attorney General to:

(1) Give his written legal opinion as to thevalidity of any act of any state or county under which the bonds or securitiesare issued and authorized and in which the State Treasurer contemplatesinvestment.

(2) Examine and give his written opinion uponthe title and the abstract of title of all agricultural land on which the Statecontemplates taking mortgages.

2. If the State Treasurer is satisfied as to thefinancial standing and responsibility of the state or county whose bonds orsecurities he proposes to purchase, or is satisfied of the financial standingand responsibility of the person whose mortgages on agricultural land areoffered to the State, and the Attorney General gives his written opinion thatthe act under which the bonds or securities are issued is valid and that theissues were regularly made, or approves the abstract of title of the agriculturalland proposed to be mortgaged, the State Treasurer may make the investment.

3. The provisions of this section do not apply toloans of money from the State Permanent School Fund made pursuant to NRS 387.526.

[Part 2:212:1917; A 1925, 221; 1919 RL p. 3146; NCL 6963](NRS A 1979, 570; 1981, 361; 1997, 2713; 1999, 599)

NRS 355.080 Restrictionson investment in county bonds. No part of theState Permanent School Fund may be invested in the bonds of any county whoseentire bonded indebtedness for all purposes exceeds 10 percent of its assessedvaluation; and the amount of bonds of any county purchased or invested in bythe State Treasurer may not, in the aggregate, exceed 4 percent of the assessedvaluation of any county.

[5:212:1917; A 1928, 30; 1947, 267; 1943 NCL 6966](NRS A 1979, 724)

NRS 355.090 Conversionof bonds or securities into cash; reinvestment. TheState Treasurer may convert into cash any of the bonds or securities in whichany part of the State Permanent School Fund is invested by selling them in theopen market to the highest bidder or bidders, the proceeds thereof to be placedby the State Treasurer in the State Permanent School Fund to be reinvested asprovided in NRS 355.060 and 355.070.

[4:212:1917; 1919 RL p. 3147; NCL 6965](NRS A1979, 724)

NRS 355.100 Loanson agricultural lands: Abstract; appraisal.

1. Any person desiring to obtain a loan from the StatePermanent School Fund on agricultural land shall:

(a) Make written application to the State Board ofFinance; and

(b) At the same time, furnish to the State Board ofFinance a full and complete abstract of title to the property offered assecurity for the loan.

2. If the abstract is approved by the Attorney Generaland it appears that the person offering such mortgage has an exceptional titlefree from all encumbrances, the State Board of Finance forthwith shall appointan appraiser or appraisers to view the land and improvements thereon and make areport to the State Board of Finance of the value thereof. The person desiringto obtain the loan shall pay the cost of the appraiser or appraisers which maybe incurred, not to exceed $5 per day and expenses.

[6:212:1917; 1919 RL p. 3147; NCL 6967] +[8:212:1917; 1919 RL p. 3147; NCL 6969]

NRS 355.110 Noteand mortgage: Execution and recording; provisions.

1. If the abstract is approved by the Attorney Generaland the title is in accordance with the requirements of NRS 355.100, and the written report of theappraiser or appraisers is satisfactory to the State Board of Finance, the loanshall be made. The person obtaining the loan shall execute a note payable tothe State of Nevada for the State Permanent School Fund for the amount thereof,and shall execute as security for the payment of the note a mortgage upon thelands to be given as security in a form and manner to be approved by theAttorney General. The mortgage shall be recorded as other mortgages of realproperty are recorded.

2. Every loan made upon a mortgage on agriculturalland shall be payable in not to exceed 10 years, and provision shall be madefor partial payments annually or semiannually to the State Treasurer, but nopayments shall be made in an amount less than $100 and interest accruing. Allpayments of interest and payments upon principal shall be made semiannually onJune 1 and December 1 of each year.

[7:212:1917; 1919 RL p. 3147; NCL 6968]

OTHER AUTHORIZED STATE INVESTMENTS AND LOANS

NRS 355.120 Investmentin farm mortgage loans, farm loan bonds and other obligations issued by federalland banks and banks for cooperatives; limitations. TheState Treasurer may invest any available money in the State Treasury, otherthan that in the State Permanent School Fund and that in the State InsuranceFund, in farm mortgage loans fully insured and guaranteed by the Farmers HomeAdministration of the United States Department of Agriculture, farm loan bonds,consolidated farm loan bonds, debentures, consolidated debentures and otherobligations issued by federal land banks and federal intermediate credit banksunder the authority of the Federal Farm Loan Act, formerly 12 U.S.C. 636 to1012, inclusive, and 1021 to 1129, inclusive, and the Farm Credit Act of 1971,12 U.S.C. 2001 to 2259, inclusive, as now or hereafter amended, and bonds,debentures, consolidated debentures and other obligations issued by banks forcooperatives under the authority of the Farm Credit Act of 1933, formerly 12U.S.C. 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. 2001 to 2259, inclusive, as now or hereafter amended.

[5a:93:1919; added 1953, 303](NRS A 1959, 34; 1973,1089; 1979, 724; 1991, 471)

NRS 355.130 Loansto local governments.

1. By unanimous vote of its members and with theapproval of the State Board of Examiners, the State Board of Finance may lendany available money in the State Treasury, other than that in the StatePermanent School Fund and the State Insurance Fund, to local governmentssituated within the boundaries of the State of Nevada. Such loans must be madeonly to local governments which have observed the regulations and followed theprocedure for obtaining a medium-term obligation set forth in chapter 350 of NRS. Such loans must be made for aperiod of not longer than 10 years and must bear interest at a rate which doesnot exceed by more than 3 percent the Index of Twenty Bonds which was mostrecently published before the bids are received or a negotiated offer isaccepted.

2. In making loans to local governments, the StateBoard of Finance shall follow the procedure for making other loans set forth inthis chapter.

[5:93:1919; 1919 RL p. 3111; NCL 6960](NRS A 1959,422; 1965, 745; 1969, 802; 1973, 16; 1975, 870; 1981, 1415; 1983, 583; 1989,53; 1995, 1820)

NRS 355.135 Lendingof securities from state investment portfolio. TheState Treasurer may lend securities from the investment portfolio of this stateif he receives collateral from the borrower which represents at least 102percent of the value of the securities borrowed. For the purposes of thissection, the value of the securities borrowed must be determined on a dailybasis.

(Added to NRS by 1995, 407)

NRS 355.140 Authorizedand prohibited investments of state money.

1. In additionto other investments provided for by a specific statute, the following bondsand other securities are proper and lawful investments of any of the money ofthis state, of its various departments, institutions and agencies, and of theState Insurance Fund:

(a) Bonds andcertificates of the United States;

(b) Bonds,notes, debentures and loans if they are underwritten by or their payment isguaranteed by the United States;

(c) Obligationsor certificates of the United States Postal Service, the Federal NationalMortgage Association, the Government National Mortgage Association, the FederalAgricultural Mortgage Corporation, the Federal Home Loan Banks, the FederalHome Loan Mortgage Corporation or the Student Loan Marketing Association,whether or not guaranteed by the United States;

(d) Bonds ofthis state or other states of the Union;

(e) Bonds ofany county of this state or of other states;

(f ) Bonds of incorporated cities in this state orin other states of the Union, including special assessment district bonds ifthose bonds provide that any deficiencies in the proceeds to pay the bonds areto be paid from the general fund of the incorporated city;

(g) Generalobligation bonds of irrigation districts and drainage districts in this statewhich are liens upon the property within those districts, if the value of theproperty is found by the board or commission making the investments to renderthe bonds financially sound over all other obligations of the districts;

(h) Bonds ofschool districts within this state;

(i) Bonds ofany general improvement district whose population is 200,000 or more and whichis situated in two or more counties of this state or of any other state, if:

(1) Thebonds are general obligation bonds and constitute a lien upon the propertywithin the district which is subject to taxation; and

(2) Thatproperty is of an assessed valuation of not less than five times the amount ofthe bonded indebtedness of the district;

(j ) Medium-termobligations for counties, cities and school districts authorized pursuant to chapter 350 of NRS;

(k) Loansbearing interest at a rate determined by the State Board of Finance whensecured by first mortgages on agricultural lands in this state of not less thanthree times the value of the amount loaned, exclusive of perishableimprovements, and of unexceptional title and free from all encumbrances;

(l) Farm loanbonds, consolidated farm loan bonds, debentures, consolidated debentures andother obligations issued by federal land banks and federal intermediate creditbanks under the authority of the Federal Farm Loan Act, formerly 12 U.S.C. 636 to 1012, inclusive, and 1021 to 1129, inclusive, and the Farm Credit Actof 1971, 12 U.S.C. 2001 to 2259, inclusive, and bonds, debentures,consolidated debentures and other obligations issued by banks for cooperativesunder the authority of the Farm Credit Act of 1933, formerly 12 U.S.C. 1131to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. 2001 to 2259,inclusive, excluding such money thereof as has been received or which may bereceived hereafter from the Federal Government or received pursuant to somefederal law which governs the investment thereof;

(m) Negotiablecertificates of deposit issued by commercial banks, insured credit unions orsavings and loan associations;

(n) Bankersacceptances of the kind and maturities made eligible by law for rediscount withFederal Reserve banks or trust companies which are members of the FederalReserve System, except that acceptances may not exceed 180 days maturity, andmay not, in aggregate value, exceed 20 percent of the total par value of theportfolio as determined on the date of purchase;

(o) Commercialpaper issued by a corporation organized and operating in the United States orby a depository institution licensed by the United States or any state andoperating in the United States that:

(1) Atthe time of purchase has a remaining term to maturity of not more than 270days; and

(2) Israted by a nationally recognized rating service as A-1, P-1 or itsequivalent, or better,

except that investments pursuant tothis paragraph may not, in aggregate value, exceed 20 percent of the total parvalue of the portfolio as determined on the date of purchase, and if the ratingof an obligation is reduced to a level that does not meet the requirements ofthis paragraph, it must be sold as soon as possible;

(p) Notes,bonds and other unconditional obligations for the payment of money, exceptcertificates of deposit that do not qualify pursuant to paragraph (m), issuedby corporations organized and operating in the United States or by depositoryinstitutions licensed by the United States or any state and operating in theUnited States that:

(1) Arepurchased from a registered broker-dealer;

(2) Atthe time of purchase have a remaining term to maturity of not more than 5years; and

(3) Arerated by a nationally recognized rating service as A or its equivalent, orbetter,

except that investments pursuant tothis paragraph may not, in aggregate value, exceed 20 percent of the total parvalue of the portfolio, and if the rating of an obligation is reduced to alevel that does not meet the requirements of this paragraph, it must be sold assoon as possible;

(q) Moneymarket mutual funds which:

(1) Areregistered with the Securities and Exchange Commission;

(2) Arerated by a nationally recognized rating service as AAA or its equivalent; and

(3) Investonly in securities issued by the Federal Government or agencies of the FederalGovernment or in repurchase agreements fully collateralized by such securities;

(r) Collateralizedmortgage obligations that are rated by a nationally recognized rating serviceas AAA or its equivalent; and

(s) Asset-backedsecurities that are rated by a nationally recognized rating service as AAA orits equivalent.

2. Repurchaseagreements are proper and lawful investments of money of the State and theState Insurance Fund for the purchase or sale of securities which are negotiableand of the types listed in subsection 1 if made in accordance with the followingconditions:

(a) The StateTreasurer shall designate in advance and thereafter maintain a list ofqualified counterparties which:

(1) Regularlyprovide audited and, if available, unaudited financial statements to the StateTreasurer;

(2) TheState Treasurer has determined to have adequate capitalization and earnings andappropriate assets to be highly credit worthy; and

(3) Haveexecuted a written master repurchase agreement in a form satisfactory to theState Treasurer and the State Board of Finance pursuant to which all repurchaseagreements are entered into. The master repurchase agreement must require theprompt delivery to the State Treasurer and the appointed custodian of writtenconfirmations of all transactions conducted thereunder, and must be developedgiving consideration to the Federal Bankruptcy Act, 11 U.S.C. 101 et seq.

(b) In allrepurchase agreements:

(1) Ator before the time money to pay the purchase price is transferred, title to thepurchased securities must be recorded in the name of the appointed custodian,or the purchased securities must be delivered with all appropriate, executedtransfer instruments by physical delivery to the custodian;

(2) TheState must enter into a written contract with the custodian appointed pursuantto subparagraph (1) which requires the custodian to:

(I)Disburse cash for repurchase agreements only upon receipt of the underlyingsecurities;

(II)Notify the State when the securities are marked to the market if the requiredmargin on the agreement is not maintained;

(III)Hold the securities separate from the assets of the custodian; and

(IV)Report periodically to the State concerning the market value of the securities;

(3) Themarket value of the purchased securities must exceed 102 percent of therepurchase price to be paid by the counterparty and the value of the purchasedsecurities must be marked to the market weekly;

(4) Thedate on which the securities are to be repurchased must not be more than 90days after the date of purchase; and

(5) Thepurchased securities must not have a term to maturity at the time of purchasein excess of 10 years.

3. As used insubsection 2:

(a) Counterpartymeans a bank organized and operating or licensed to operate in the UnitedStates pursuant to federal or state law or a securities dealer which is:

(1) Aregistered broker-dealer;

(2) Designatedby the Federal Reserve Bank of New York as a primary dealer in United Statesgovernment securities; and

(3) Infull compliance with all applicable capital requirements.

(b) Repurchaseagreement means a purchase of securities by the State or State Insurance Fundfrom a counterparty which commits to repurchase those securities or securitiesof the same issuer, description, issue date and maturity on or before aspecified date for a specified price.

4. No money of this state may be invested pursuant toa reverse-repurchase agreement, except money invested pursuant to chapter 286 of NRS.

[1:191:1943; A 1951, 318; 1953, 38, 586; 1954,5](NRS A 1959, 35, 423; 1967, 1712; 1971, 269; 1973, 16, 334, 1090; 1981, 489;1983, 961; 1985, 353; 1989, 2178; 1991, 346, 471, 499; 1993, 2283; 1995, 167,1820; 1997, 1282; 1999,798, 1477, 1821; 2001, 2293)

NRS 355.145 Standardof care for investments made pursuant to NRS 355.140. Ininvesting pursuant to NRS 355.140, theState Treasurer shall exercise the judgment and care, under the circumstancesthen prevailing, which a person of prudence, discretion and intelligenceexercises in the management of his own affairs, not in regard to speculation,but in regard to the investment of his money, considering the probable incomeas well as the probable safety of his capital.

(Added to NRS by 1993, 2282)

NRS 355.150 Determinationsto be made before investment; opinion of Attorney General.

1. Before making any investment in the bonds and othersecurities designated in NRS 355.140,the State Board of Finance, or other board, commission or agency of the Statecontemplating the making of any such investments shall make due and diligentinquiry as to:

(a) Whether the bonds of such federal agencies areactually underwritten or payment thereof is guaranteed by the United States.

(b) The financial standing and responsibility of thestate or states, county or counties, incorporated cities, irrigation districts,drainage districts, school districts, and general improvement districts in thebonds or securities of which such investments are contemplated or are to bemade.

(c) Whether such bonds and other securities are validand duly authorized and issued, and the proceedings incident thereto have beenfully complied with.

(d) The financial standing and responsibility of theperson or persons, company or companies, corporation or corporations to whom orto which such loans are contemplated.

(e) The value of the lands so mortgaged.

2. Such commission, board or other state agency shallrequire the Attorney General:

(a) To give his legal opinion in writing as to:

(1) The validity of any laws under which suchbonds or securities are issued and authorized and in which such investments arecontemplated.

(2) The validity of such bonds or othersecurities.

(b) To examine and pass upon and to give his officialopinion in writing upon the title and abstract of title or title insurance ofall agricultural lands so mortgaged to secure such loans.

3. Unless such commission, board or other state agencyis satisfied from such inquiry and opinion that the bonds of such federalagencies are underwritten or payment thereof guaranteed by the United Statesand of the financial standing and responsibility of the state, county,incorporated city or district issuing such bonds, then such commission, boardor other state agency shall not invest such funds therein, but if satisfied,such commission, board or other state agency may, at its option, so invest suchfunds in such bonds.

[2:191:1943; 1943 NCL 7058.01](NRS A 1967, 1713;1979, 1641; 1981, 1525; 1999, 1825)

NRS 355.160 Purposeof NRS355.140 and 355.150. Exceptas otherwise provided in NRS 355.140 and355.150, the State Board of Finance,State Board of Education or other state agency shall proceed in the same manneras the law relating to each of them requires in the making of such investments,the purpose of NRS 355.140 and 355.150, being merely to designate theclasses of bonds and other securities and loans in which the funds mentioned inNRS 355.140 lawfully may be invested andthe other matters relating thereto as specified in NRS 355.140 and 355.150.

[3:191:1943; 1943 NCL 7058.02](NRS A 1981, 1525; 1999, 1825)

INVESTMENTS AND LOANS BY LOCAL GOVERNMENTS

NRS 355.165 LocalGovernment Pooled Long-Term Investment Account: Creation; administration;applicability of NRS 355.167; permissible investments; assessment of costs;computation of interest; establishment of subaccounts.

1. The Local Government Pooled Long-Term InvestmentAccount is hereby created. The Account must be administered by the StateTreasurer.

2. All of the provisions of NRS 355.167 apply to the Local GovernmentPooled Long-Term Investment Account.

3. In addition to the investments which arepermissible pursuant to subsection 3 of NRS355.167, the Treasurer may invest the money in the Local Government PooledLong-Term Investment Account in:

(a) Mutual funds which:

(1) Are registered with the Securities andExchange Commission;

(2) Are rated in the highest rating category byat least one nationally recognized rating service; and

(3) Invest only in securities issued by theFederal Government or agencies of the Federal Government or in repurchaseagreements fully collateralized by such securities.

(b) An investment contract that is collateralized withsecurities issued by the Federal Government or agencies of the FederalGovernment if:

(1) The collateral has a market value of atleast 102 percent of the amount invested and any accrued unpaid interestthereon;

(2) The Treasurer receives a security interestin the collateral that is fully perfected and the collateral is held in custodyfor the State by a third-party agent of the State which is a commercial bankauthorized to exercise trust powers;

(3) The market value of the collateral is determinednot less frequently than weekly and, if the ratio required by subparagraph (1)is not met, sufficient additional collateral is deposited with the agent ofthis state to meet that ratio within 2 business days after the determination;and

(4) The party with whom the investment contractis executed is a commercial bank or credit union, or that party or a guarantorof the performance of that party is:

(I) An insurance company which has arating on its ability to pay claims of not less than Aa2 by Moodys InvestorsService, Inc., or AA by Standard and Poors Ratings Services, or theirequivalent; or

(II) An entity which has a credit ratingon its outstanding long-term debt of not less than A2 by Moodys InvestorsService, Inc., or A by Standard and Poors Ratings Services, or theirequivalent.

4. In addition to the reasonable charges against theAccount which the State Treasurer may assess pursuant to subsection 8 of NRS 355.167, the State Treasurer may, inthe case of a local government pooled long-term investment account, assess thecosts:

(a) Associated with a calculation of any rebate ofarbitrage profits which is required to be paid to the Federal Government by 26U.S.C. 148; and

(b) Of contracting with qualified persons to assist inthe:

(1) Calculation of any rebate of arbitrageprofits which is required to be paid to the Federal Government by 26 U.S.C. 148; and

(2) Administration of the Account.

5. In addition to the quarterly computations ofinterest to be reinvested for or paid to each participating local governmentpursuant to subsection 9 of NRS 355.167,the State Treasurer may, in the case of a local government pooled long-terminvestment account, compute and reinvest or pay the interest more frequently.He may also base his computations on the amount of interest accrued rather thanthe amount received.

6. The Treasurer may establish one or more separatesubaccounts in the Local Government Pooled Long-Term Investment Account foridentified investments that are made for and allocated to specificparticipating local governments.

(Added to NRS by 1993, 257; A 1997, 2879; 1999, 1480)

NRS 355.167 LocalGovernment Pooled Investment Fund: Creation; administration; permissibleinvestments; permissible loans; written request for withdrawal by localgovernment; interest; regulations.

1. The Local Government Pooled Investment Fund ishereby created as an agency fund to be administered by the State Treasurer.

2. Any local government, as defined in NRS 354.474, may deposit its money with theState Treasurer for credit to the Fund for purposes of investment.

3. The State Treasurer may invest the money of theFund:

(a) In securities which have been authorized as investmentsfor a local government by any provision of NRS or any special law.

(b) In time certificates of deposit in the mannerprovided by NRS 356.015.

4. The StateTreasurer may lend securities in which he invests pursuant to subsection 3 or NRS 355.165 if he receives collateral fromthe borrower in the form of cash or marketable securities that are:

(a) Acceptable tothe State Treasurer; and

(b) At least 102percent of the value of the securities borrowed.

The StateTreasurer may enter into such contracts as are necessary to extend and manageloans pursuant to this subsection.

5. Each local government that elects to deposit moneywith the State Treasurer for such an investment must:

(a) Upon the deposit, inform him in writing how long aperiod the money is expected to be available for investment.

(b) At the end of the period, notify him in writingwhether it wishes to extend the period.

6. If a local government wishes to withdraw any of itsmoney before the end of the period of investment, it must make a writtenrequest to the State Treasurer. Whenever he is required to sell or liquidateinvested securities because of a request for early withdrawal, any penalties orloss of interest incurred must be charged against the deposit of the localgovernment which requested the early withdrawal.

7. All interest received on money of the Fund must bedeposited for credit to the Fund.

8. The State Treasurer may assess reasonable chargesagainst the Fund for reimbursement of the expenses which he incurs inadministering the Fund. The amount of the assessments must be transferred to anaccount within the State General Fund for use of the State Treasurer incarrying out the provisions of this section.

9. At the end of each quarter of each fiscal year, theState Treasurer shall:

(a) Compute the proportion of the total deposits in theFund which were attributable during the quarter to each local government;

(b) Apply that proportion to the total amount ofinterest received during the quarter on invested money of the Fund; and

(c) Pay to each participating local government orreinvest upon its instructions its proportionate share of the interest, ascomputed pursuant to paragraphs (a) and (b), less the proportionate amounts ofthe assessments for the expenses of administration.

10. The State Treasurer may adopt reasonableregulations to carry out the provisions of this section.

(Added to NRS by 1979, 701; A 1981, 342; 1989, 309; 1999, 926)

NRS 355.168 Poolingof money of local governments within county for investment.

1. Except as otherwise provided in this section or bystatute or contract regarding money from a particular source, the countytreasurer of any county may pool, for purposes of investment, any money held byhim for local governments, as defined in NRS354.474, which he is otherwise authorized by statute to invest.

2. Before a county treasurer pools any money pursuantto subsection 1, he shall notify in writing each local government whose moneyis to be included in the pool. The county treasurer may pool the money of thevarious local governments notified unless he is directed by a local government,within 15 days after receipt of the notice, to invest all or a portion of itsmoney separately from any money so pooled. The notice must include a copy ofthe guidelines established by the county treasurer pursuant to subsection 3 andmust state the time within which the local government must respond, as providedin this subsection.

3. The county treasurer must establish writtenguidelines for the pooling of money for investments, including provisionsconcerning:

(a) The method of allocating any income or loss fromany investments among the participating local governments;

(b) The procedures for notification of the countytreasurer by a local government of how long a period the money is expected tobe available for investment;

(c) Early withdrawals, of money invested through thepool, by request of a participating local government, and the charging of anypenalties or loss of interest incurred because of the early withdrawal, againstthe money of that local government; and

(d) The method by which a local government maypartially or completely terminate its participation in the pool.

(Added to NRS by 1985, 2109)

NRS 355.169 Legalaction by county to recover investment; expenses.

1. If an investment of the money of a county or otherlocal government is made by the county treasurer, whether separately or througha pooling arrangement as provided in NRS355.168, the county may, on behalf of that local government, take anylawful action necessary to recover the money invested if:

(a) The principal of and interest on any investment isnot received when due; or

(b) The corporation, bank, credit union, broker orother person with whom the investment is made becomes insolvent or bankrupt oris placed in receivership.

2. The expenses of any action taken pursuant to thissection must be paid from the money recovered and allocated among the fundsfrom which the investment is made in the same manner as any loss on aninvestment is allocated. If the total amount of money recovered is insufficientto pay those expenses, the excess amount is a charge against the county.

(Added to NRS by 1985, 2110; A 1999, 1481)

NRS 355.170 Authorizedinvestments; disposition of interest.

1. Except as otherwise provided in this section and NRS 354.750 and 355.171, the governing body of a localgovernment may purchase for investment the following securities and no others:

(a) Bonds and debentures of the United States, thematurity dates of which do not extend more than 10 years after the date ofpurchase.

(b) Farm loan bonds, consolidated farm loan bonds,debentures, consolidated debentures and other obligations issued by federalland banks and federal intermediate credit banks under the authority of theFederal Farm Loan Act, formerly 12 U.S.C. 636 to 1012, inclusive, and 1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. 2001 to2259, inclusive, and bonds, debentures, consolidated debentures and otherobligations issued by banks for cooperatives under the authority of the FarmCredit Act of 1933, formerly 12 U.S.C. 1131 to 1138e, inclusive, and theFarm Credit Act of 1971, 12 U.S.C. 2001 to 2259, inclusive.

(c) Bills and notes of the United States Treasury, thematurity date of which is not more than 10 years after the date of purchase.

(d) Obligations of an agency or instrumentality of theUnited States of America or a corporation sponsored by the government, thematurity date of which is not more than 10 years after the date of purchase.

(e) Negotiable certificates of deposit issued bycommercial banks, insured credit unions or savings and loan associations.

(f) Securities which have been expressly authorized asinvestments for local governments by any provision of Nevada Revised Statutesor by any special law.

(g) Nonnegotiable certificates of deposit issued byinsured commercial banks, insured credit unions or insured savings and loanassociations, except certificates that are not within the limits of insuranceprovided by an instrumentality of the United States, unless those certificatesare collateralized in the same manner as is required for uninsured deposits bya county treasurer pursuant to NRS 356.133.For the purposes of this paragraph, any reference in NRS 356.133 to a county treasurer orboard of county commissioners shall be deemed to refer to the appropriatefinancial officer or governing body of the local government purchasing thecertificates.

(h) Subject to the limitations contained in NRS 355.177, negotiable notes medium-termobligations issued by local governments of the State of Nevada pursuant to NRS 350.087 to 350.095, inclusive.

(i) Bankers acceptances of the kind and maturitiesmade eligible by law for rediscount with Federal Reserve Banks, and generallyaccepted by banks or trust companies which are members of the Federal ReserveSystem. Eligible bankers acceptances may not exceed 180 days maturity.Purchases of bankers acceptances may not exceed 20 percent of the moneyavailable to a local government for investment as determined on the date of purchase.

(j) Obligations of state and local governments if:

(1) The interest on the obligation is exemptfrom gross income for federal income tax purposes; and

(2) The obligation has been rated A or higherby one or more nationally recognized bond credit rating agencies.

(k) Commercial paper issued by a corporation organizedand operating in the United States or by a depository institution licensed bythe United States or any state and operating in the United States that:

(1) Is purchased from a registeredbroker-dealer;

(2) At the time of purchase has a remaining termto maturity of no more than 270 days; and

(3) Is rated by a nationally recognized ratingservice as A-1, P-1 or its equivalent, or better,

except thatinvestments pursuant to this paragraph may not, in aggregate value, exceed 20percent of the total portfolio as determined on the date of purchase, and ifthe rating of an obligation is reduced to a level that does not meet therequirements of this paragraph, it must be sold as soon as possible.

(l) Money market mutual funds which:

(1) Are registered with the Securities andExchange Commission;

(2) Are rated by a nationally recognized ratingservice as AAA or its equivalent; and

(3) Invest only in:

(I) Securities issued by the FederalGovernment or agencies of the Federal Government;

(II) Master notes, bank notes or othershort-term commercial paper rated by a nationally recognized rating service asA-1, P-1 or its equivalent, or better, issued by a corporation organizedand operating in the United States or by a depository institution licensed bythe United States or any state and operating in the United States; or

(III) Repurchase agreements that are fullycollateralized by the obligations described in sub-subparagraphs (I) and (II).

(m) Obligations of the Federal Agricultural MortgageCorporation.

2. Repurchase agreements are proper and lawfulinvestments of money of a governing body of a local government for the purchaseor sale of securities which are negotiable and of the types listed insubsection 1 if made in accordance with the following conditions:

(a) The governing body of the local government shalldesignate in advance and thereafter maintain a list of qualified counterpartieswhich:

(1) Regularly provide audited and, if available,unaudited financial statements;

(2) The governing body of the local governmenthas determined to have adequate capitalization and earnings and appropriateassets to be highly creditworthy; and

(3) Have executed a written master repurchaseagreement in a form satisfactory to the governing body of the local governmentpursuant to which all repurchase agreements are entered into. The masterrepurchase agreement must require the prompt delivery to the governing body ofthe local government and the appointed custodian of written confirmations ofall transactions conducted thereunder, and must be developed givingconsideration to the Federal Bankruptcy Act.

(b) In all repurchase agreements:

(1) At or before the time money to pay thepurchase price is transferred, title to the purchased securities must berecorded in the name of the appointed custodian, or the purchased securitiesmust be delivered with all appropriate, executed transfer instruments byphysical delivery to the custodian;

(2) The governing body of the local governmentmust enter a written contract with the custodian appointed pursuant tosubparagraph (1) which requires the custodian to:

(I) Disburse cash for repurchaseagreements only upon receipt of the underlying securities;

(II) Notify the governing body of thelocal government when the securities are marked to the market if the requiredmargin on the agreement is not maintained;

(III) Hold the securities separate fromthe assets of the custodian; and

(IV) Report periodically to the governingbody of the local government concerning the market value of the securities;

(3) The market value of the purchased securitiesmust exceed 102 percent of the repurchase price to be paid by the counterpartyand the value of the purchased securities must be marked to the market weekly;

(4) The date on which the securities are to berepurchased must not be more than 90 days after the date of purchase; and

(5) The purchased securities must not have a termto maturity at the time of purchase in excess of 10 years.

3. The securities described in paragraphs (a), (b) and(c) of subsection 1 and the repurchase agreements described in subsection 2 maybe purchased when, in the opinion of the governing body of the localgovernment, there is sufficient money in any fund of the local government topurchase those securities and the purchase will not result in the impairment ofthe fund for the purposes for which it was created.

4. When the governing body of the local government hasdetermined that there is available money in any fund or funds for the purchaseof bonds as set out in subsection 1 or 2, those purchases may be made and thebonds paid for out of any one or more of the funds, but the bonds must be creditedto the funds in the amounts purchased, and the money received from theredemption of the bonds, as and when redeemed, must go back into the fund orfunds from which the purchase money was taken originally.

5. Any interest earned on money invested pursuant tosubsection 3, may, at the discretion of the governing body of the localgovernment, be credited to the fund from which the principal was taken or tothe general fund of the local government.

6. The governing body of a local government may investany money apportioned into funds and not invested pursuant to subsection 3 andany money not apportioned into funds in bills and notes of the United StatesTreasury, the maturity date of which is not more than 1 year after the date ofinvestment. These investments must be considered as cash for accountingpurposes, and all the interest earned on them must be credited to the generalfund of the local government.

7. This section does not authorize the investment ofmoney administered pursuant to a contract, debenture agreement or grant in amanner not authorized by the terms of the contract, agreement or grant.

8. As used in this section:

(a) Counterparty means a bank organized and operatingor licensed to operate in the United States pursuant to federal or state law ora securities dealer which is:

(1) A registered broker-dealer;

(2) Designated by the Federal Reserve Bank ofNew York as a primary dealer in United States government securities; and

(3) In full compliance with all applicable capitalrequirements.

(b) Local government has the meaning ascribed to itin NRS 354.474.

(c) Repurchase agreement means a purchase ofsecurities by the governing body of a local government from a counterpartywhich commits to repurchase those securities or securities of the same issuer,description, issue date and maturity on or before a specified date for aspecified price.

[1:95:1945; 1943 NCL 1987.01] + [2:95:1945; 1943NCL 1987.02](NRS A 1959, 36, 424; 1967, 275; 1969, 1087; 1971, 270; 1973,1091; 1975, 268; 1979, 448, 1887; 1985, 2110; 1989, 1260; 1991, 106, 341, 343;1993, 211, 2286, 2289; 1995, 1823; 1999, 1481; 2001, 598, 2296, 2327; 2003, 162; 2003, 20thSpecial Session, 281)

NRS 355.171 Additionalauthorized investments for counties, cities and school districts; exceptions.

1. Except as otherwise provided in this section, aboard of county commissioners, a board of trustees of a county school districtor the governing body of an incorporated city may purchase for investment:

(a) Notes, bonds and other unconditional obligationsfor the payment of money issued by corporations organized and operating in theUnited States that:

(1) Are purchased from a registeredbroker-dealer;

(2) At the time of purchase have a remainingterm to maturity of no more than 5 years; and

(3) Are rated by a nationally recognized ratingservice as A or its equivalent, or better.

(b) Collateralized mortgage obligations that are ratedby a nationally recognized rating service as AAA or its equivalent.

(c) Asset-backed securities that are rated by anationally recognized rating service as AAA or its equivalent.

2. With respect to investments purchased pursuant toparagraph (a) of subsection 1:

(a) Such investments must not, in aggregate value,exceed 20 percent of the total portfolio as determined on the date of purchase;

(b) Not more than 25 percent of such investments may bein notes, bonds and other unconditional obligations issued by any one corporation;and

(c) If the rating of an obligation is reduced to alevel that does not meet the requirements of that paragraph, the obligationmust be sold as soon as possible.

3. Subsections 1 and 2 do not:

(a) Apply to a:

(1) Board of county commissioners of a countywhose population is less than 100,000;

(2) Board of trustees of a county schooldistrict in a county whose population is less than 100,000; or

(3) Governing body of an incorporated city whosepopulation is less than 100,000,

unless thepurchase is effected by the State Treasurer pursuant to his investment of apool of money from local governments or by an investment adviser who is registeredwith the Securities and Exchange Commission and approved by the State Board ofFinance.

(b) Authorize the investment of money administeredpursuant to a contract, debenture agreement or grant in a manner not authorizedby the terms of the contract, agreement or grant.

(Added to NRS by 2001, 597)

NRS 355.172 Possessionof securities purchased by or for local government; security interest in lieuof possession.

1. Except as otherwise provided in NRS 355.178, any securities purchased as aninvestment of money by or on behalf of a local government, as defined in NRS 354.474, must remain in the possessionof the county treasurer, the appropriate officer of that local government or aqualified bank or trust, throughout the period of the investment, except thatany securities subject to repurchase by the seller may be evidenced by a fullyperfected, first-priority security interest, as provided in subsection 3.

2. The county treasurer or the appropriate officer ofa local government may physically possess those securities, which must beregistered in the name of the local government, or may make an agreement, inwriting, with any qualified bank or trust to hold those securities for, and inthe name of, that local government. If such an agreement is made, the bank ortrust shall furnish the county treasurer or the appropriate officer of thelocal government with a written statement acknowledging that it is so holdingthe securities.

3. If the securities purchased are subject to anarrangement for the repurchase of those securities by the seller thereof, thecounty treasurer, the appropriate officer of the local government or aqualified bank or trust may, in lieu of the requirement of possession, obtainthe sole, fully perfected, first-priority security interest in thosesecurities. If the bank or trust obtains such a security interest, it shallfurnish the county treasurer or the appropriate officer of the local governmentwith a written statement acknowledging that fact. Any securities so purchasedmust, at the time of purchase by or for a local government, have a fair marketvalue equal to or greater than the repurchase price of the securities.

4. For the purposes of this section, a bank or trustis qualified to hold securities for a local government if the bank or trust israted by a nationally recognized rating service as AA- or its equivalent, orbetter.

(Added to NRS by 1985, 2109; A 1987, 1306; 1999, 927; 2005, 1346)

NRS 355.175 Authorityfor investments; priority in case of conflicting orders concerning same money;disposition of interest.

1. The governing body of any local government oragency, whether or not it is included in the provisions of chapter 354 of NRS, may:

(a) Direct its treasurer or other appropriate officerto invest its money or any part thereof in any investment which is lawful for alocal government pursuant to NRS 355.170;or

(b) Allow a county treasurer to make such investmentsthrough a pool as provided in NRS 355.168.

2. In case of conflict, any order made pursuant toparagraph (a) of subsection 1 takes precedence over any other order concerningthe same money or funds pursuant to subsection 5 of NRS 355.170.

3. Any interest earned from investments made pursuantto this section must be credited, at the discretion of the local governingunit, to any fund under its control, but the designation of the fund must bemade at the time of investment of the principal.

(Added to NRS by 1967, 276; A 1985, 2112; 1993, 213,2289; 2003,20th Special Session, 284)

NRS 355.176 Investmentof money held pursuant to deferred compensation plan. Anymoney held by a local government pursuant to a deferred compensation plan maybe invested in the types of investments set forth in paragraphs (a) to (f),inclusive, of subsection 1 of NRS 355.170and may additionally be invested in corporate stocks, bonds and securities,mutual funds, savings and loan accounts, credit union accounts, life insurancepolicies, annuities, mortgages, deeds of trust or other security interests inreal or personal property.

(Added to NRS by 1979, 801)(Substituted in revisionfor part of NRS 355.170)

NRS 355.177 Investmentin own securities or interim warrants prohibited. Nogoverning body of any local government or agency, as defined in NRS 354.474, may invest any of its moneys,or any part thereof, in:

1. Its own securities of any kind.

2. Interim warrants from any source.

(Added to NRS by 1969, 1087)

NRS 355.178 Loansfrom investment portfolio of certain counties or cities.

1. The governing body of a city whose population is150,000 or more or a county whose population is 100,000 or more may lendsecurities from its investment portfolio if:

(a) The investment portfolio has a value of at least$100,000,000;

(b) The treasurer of the city or county:

(1) Establishes a policy for investment thatincludes provisions which set forth the procedures to be used to lendsecurities pursuant to this section; and

(2) Submits the policy established pursuant tosubparagraph (1) to the city or county manager and prepares and submits to thecity or county manager a monthly report that sets forth the securities thathave been lent pursuant to this section and any other information relatingthereto, including, without limitation, the terms of each agreement for thelending of those securities; and

(c) The governing body receives collateral from theborrower in the form of cash or marketable securities that are:

(1) Authorized pursuant to NRS 355.170, if the collateral is in theform of marketable securities; and

(2) At least 102 percent of the value of thesecurities borrowed.

2. The governing body of a city or consolidatedmunicipality whose population is 60,000 or more but less than 150,000 may lendsecurities from its investment portfolio if:

(a) The investment portfolio has a value of at least$50,000,000;

(b) The governing body is currently authorized to lendsecurities pursuant to subsection 5;

(c) The treasurer of the city or consolidated municipality:

(1) Establishes a policy for investment thatincludes provisions which set forth the procedures to be used to lendsecurities pursuant to this section; and

(2) Submits the policy established pursuant tosubparagraph (1) to the manager of the city or consolidated municipality andprepares and submits to the manager of the city or consolidated municipality amonthly report that sets forth the securities that have been lent pursuant tothis section and any other information relating thereto, including, withoutlimitation, the terms of each agreement for the lending of those securities;and

(d) The governing body receives collateral from theborrower in the form of cash or marketable securities that are:

(1) Authorized pursuant to NRS 355.170, if the collateral is in theform of marketable securities; and

(2) At least 102 percent of the value of thesecurities borrowed.

3. The governing body of a city, county orconsolidated municipality may enter into such contracts as are necessary toextend and manage loans pursuant to this section.

4. The total of investments made by a particular city,county or consolidated municipality with collateral received pursuant tosubsection 1 or 2 must have an average weighted maturity of not more than 90days.

5. The governing body of a city or consolidatedmunicipality whose population is 60,000 or more but less than 150,000 shall notlend securities from its investment portfolio unless it has been authorized todo so by the State Board of Finance. The State Board of Finance shall adoptregulations that establish minimum standards for granting authorizationpursuant to this subsection. Such an authorization is valid for 2 years and maybe renewed by the State Board of Finance for additional 2-year periods.

6. As used in this section, average weightedmaturity means the average length of time until the securities in which aparticular city, county or consolidated municipality has invested with collateralreceived pursuant to subsection 1 or 2 will mature or be redeemed by theirissuers, with the length of time of each individual security proportionallyweighted according to the total dollar amount that the particular city, countyor consolidated municipality has invested in that individual security withcollateral received pursuant to subsection 1 or 2.

(Added to NRS by 1999, 925; A 2001, 1979; 2003, 823)

INVESTMENT IN BONDS OF HOME OWNERS LOAN CORPORATION ANDFEDERAL HOME LOAN BANK; LOANS AND ADVANCES INSURED BY FEDERAL HOUSINGADMINISTRATOR

NRS 355.180 Bondsof Home Owners Loan Corporation and Federal Home Loan Bank are legalinvestments. It shall be legal for this stateand any of its departments or political subdivisions, or any political orpublic corporation, or any instrumentality of the State to invest their funds,or moneys in their custody, in the bonds of the Home Owners Loan Corporationor in the bonds of any Federal Home Loan Bank, or in consolidated Federal HomeLoan Bank bonds, debentures or notes.

[Part 1:61:1935; 1931 NCL 3695.01]

NRS 355.190 Loansand advances of credit by Federal Housing Administrator.

1. Subject to such regulations as may be prescribed bythe Federal Housing Administrator, the State of Nevada and any city or countyor instrumentality thereof are authorized:

(a) To make such loans and advances of credit, andpurchases of obligations representing the loans and advances of credit, as areeligible for insurance by the Federal Housing Administrator, and to obtain suchinsurance.

(b) To make such loans secured by mortgage on realproperty as are eligible for insurance by the Federal Housing Administrator,and to obtain such insurance.

(c) To purchase, invest in, and dispose of notes orbonds secured by mortgage insured by the Federal Housing Administrator,securities of national mortgage associations, and debentures issued by theFederal Housing Administrator.

2. No law of this state prescribing the nature, amountor form of security or requiring security upon which loans or advances ofcredit may be made, or prescribing or limiting interest rates upon loans oradvances of credit, or prescribing or limiting the period for which loans oradvances of credit may be made, shall apply to loans, advances of credit orpurchases made pursuant to subsection 1.

3. All loans, advances of credit, and purchases ofobligations described in this section heretofore made and insured pursuant tothe terms of the National Housing Act are hereby validated and confirmed.

[Part 1:58:1935; A 1937, 147; 1939, 43; 1931 NCL 3652.01] + [Part 2:58:1935; 1931 NCL 3652.02] + [3:58:1935; 1931 NCL 3652.03]

NRS 355.200 Depositarybonds.

1. Whenever by the terms of any general or special lawdepositaries of public or other funds are required by law to give securitytherefor, the bonds of any Federal Home Loan Bank or the bonds of the HomeOwners Loan Corporation, or consolidated Federal Home Loan Bank bonds,debentures or notes may be used as security for any depositary bonds orobligations wherein any kind of bonds or other security are required or may bylaw be deposited as security.

2. Whenever collateral must or may be furnished by anydepositary of the State of Nevada as security for the deposit of any fundswhatever, or whenever collateral must or may be deposited with any official ofthe State of Nevada pursuant to any statute of this state, notes and bondsinsured and debentures issued by the Federal Housing Administrator andobligations of national mortgage associations shall be considered eligiblecollateral for such purposes.

[4:58:1935; added 1937, 147; A 1939, 43; 1931 NCL 3652.03a] + [2:61:1935; 1931 NCL 3695.02]

INVESTMENT OF MONEY DEPOSITED IN COURT

NRS 355.210 Investmentof money deposited in court: When permitted; authorized investments.

1. When any money has been deposited in any courtpursuant to law or rule of court, and when in the judgment of the clerk of thecourt, or the judge thereof if there is no clerk, payment out of the depositwill not be required for 90 days or more, the clerk or the judge, as the casemay be, may invest the money so deposited, either alone or by commingling itwith other money deposited.

2. The investment may be made:

(a) By deposit at interest in a state or national bankor credit union in the State of Nevada; or

(b) In bills, bonds, debentures, notes or othersecurities whose purchase by a board of county commissioners is authorized by NRS 355.170.

3. The interest earned from any investment of moneypursuant to this section shall be deposited to the credit of the general fundof the political subdivision or municipality which supports the court.

4. The requirements of this section may be modified byan ordinance adopted pursuant to the provisions of NRS 244.207.

(Added to NRS by 1971, 657; A 1973, 1684; 1999, 1485)

 

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