Credit unions-depositories for public funds.

WORKING DRAFT
2009
STATE OF
WYOMING
09LSO-0529

HOUSE BILL
NO.
HB0228

Credit unions-depositories for public funds.

Sponsored by:
Representative(s) McOmie and Hammons and Senator(s) Sessions

A BILL

for

AN ACT relating to
public funds; authorizing political subdivisions to deposit public funds in federal credit
unions
and credit union certificates of deposit; specifying conditions; making conforming amendments;
and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 9
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4
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803, 9
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4
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807, 9
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4
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817(a) by creating a new paragraph (v), (c) by creating a new paragraph (ii), by renumbering (ii) as (iii), (d)(intro) and (ii), 9
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4
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818(a) and 9
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4
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831(a) by creating a new paragraph (xxvii) are amended to read:

9
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4
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803.

Deposit of state money in approved depositories; authority of treasurer.

The state treasurer may deposit any portion of the public monies in his possession in national banks within this state or in any state banks incorporated under the laws of and doing business in this state, as have been approved under W.S. 9
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4
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801 through 9
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4
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818 by the board of deposits.

As used in W.S. 9
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4
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801 through 9
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4
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818,
with respect to the deposit of state funds,
"bank" includes federal and state savings and loan associations. Federal and state savings and loan associations may be designated as depositories for state funds in the same manner as state and national banks.
As used in W.S. 9
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4
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801 through 9
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4
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818, with respect to the deposit of funds of political subdivisions, "bank" means any of the institutions specified in W.S. 9
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4
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817(a).

9
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4
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807.

Deposit of state money in approved depositories; federal insurance; security for deposits not covered.

Any properly designated depository of the public funds of the state, or of any political subdivision thereof, which is entitled to the benefits of deposit insurance provided for by the Federal Deposit Insurance Corporation
or the National Credit Union Share Insurance Fund
and the acts of congress relating thereto, shall give and at all times maintain security for the prompt payment and the safekeeping of the whole amount of any such deposit. The deposit insurance provided by the Federal Deposit Insurance Corporation
or the National Credit Union Share Insurance Fund
is eligible as the security required for the portion of any deposit that is insured by the corporation, and constitutes all of the security required for the portion. Any portion of the deposit as is not so insured shall be secured by depository bond or approved collateral securities as required by law.

9
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4
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817.

Deposits by political subdivisions; selected institutions; security; withdrawals.

(a)

To the extent they are not otherwise invested, the monies collected and held by a treasurer of a political subdivision, municipality or special district within this state shall be deposited in:

(v)

Federal credit unions
, if no entity described in paragraphs (i) through (iv) of this subsection is located within the boundaries of the political subdivision
.

(c)

The deposits made pursuant to this section shall be made to the extent that they are:

(ii)

In the case of deposits in credit unions, fully insured by the National Credit Union Share Insurance Fund; or

(ii)
(iii)

Secured, in accordance with this article, by a pledge of collateral or the furnishing of a surety bond.

(d)

Any bank, savings and loan association
,

or
federal savings bank
,

or federal credit union
located in the state, may apply to keep the monies upon the following conditions:

(ii)

All funds deposited in a savings deposit account shall be withdrawable upon demand provided that the bank
, credit union
or savings and loan association may at any time require giving of notice in writing of an intended withdrawal of thirty (30) days before a withdrawal is made;

9
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4
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818.

Deposits by political subdivisions; applications by, and approval of, banks; rate of interest; defaults.

(a)

Applications by banks
, credit unions
and savings and loan associations shall be submitted to the proper governing board and shall be acted upon by the proper governing board as soon thereafter as practicable. Prior to the deposit, the board shall negotiate the rate of interest applicable to the deposit. No monies shall be deposited by any treasurer except in banks
, credit unions
and savings and loan associations which have been approved by the proper governing board.

9
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4
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831.

Investment of public funds.

(a)

The state treasurer, or treasurer of any political subdivision, municipality or special district of this state, and the various boards of trustees and boards of directors of county hospitals, airports, fairs and other duly constituted county boards and commissions, may invest in:

(xxvii)

Certificates of deposit of a credit union doing business in this state to the extent that the certificates are fully insured by the National Credit Union Share Insurance Fund or are secured by a pledge of assets and the credit union is otherwise authorized as a depository as prescribed by law. The state treasurer shall not invest funds pursuant to this paragraph.

Section 2.

This act is effective July 1, 2009.

(END)

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HB0228