Bill Text: NC S1166 | 2010 | Regular Session | Amended
Bill Title: Community College Investment Flexibility
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-05-18 - Ref To Com On Finance [S1166 Detail]
Download: North_Carolina-2010-S1166-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
S 1
SENATE BILL 1166
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Short Title: Community College Investment Flexibility. |
(Public) |
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Sponsors: |
Senator Hartsell. |
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Referred to: |
Finance. |
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May 18, 2010
A BILL TO BE ENTITLED
AN ACT granting community colleges additional flexibility with regard to investments.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 115D‑58.6 reads as rewritten:
"§ 115D‑58.6. Investment of idle cash.
(a) Definitions. – As used in this section:
(1) "Cash balance" means the amount equal to all moneys received into institutional fund accounts minus all expenses and withdrawals from those accounts in an official depository of the institution as designated by the local board of trustees consistent with G.S. 115D‑58.7.
(2) "Official depository" means one or more banks, savings and loan associations, or trust companies in North Carolina that a community college board of trustees has designated consistent with G.S. 115D‑58.7.
(a1) Deposits. – The institution may
deposit at interest or invest all or part of the cash balance of any
fund in an official depository of the institution. The institution shall
manage investments subject to whatever restrictions and directions the board of
trustees may impose. The institution shall have the power to purchase, sell,
and exchange securities on behalf of the board of trustees. The investment
program shall be so managed that investments and deposits can be converted into
cash when needed. Moneys may be deposited at interest in any official
depository of the institution in the form of certificates of deposit or such
other forms of time deposits as may be approved for county governments. In
addition, moneys may be deposited in the form of certificates of deposit as
provided for a local government or public authority in G.S. 159‑30(b1).
Investment deposits shall be secured as provided in G.S. 159‑31(b).
(b) Moneys may be deposited at interest in
any bank, savings and loan association or trust company in this State in the
form of certificates of deposit or such other forms of time deposits as may be
approved for county governments. In addition, moneys may be deposited in the
form of certificates of deposit as provided for a local government or public
authority in G.S. 159‑30(b1). Investment deposits shall be secured
as provided in G.S. 159‑31(b).
(c) Investments. – The institution may invest all or part of the cash balance of any fund in an official depository of the institution. The institution shall manage investments subject to whatever restrictions and directions the board of trustees may impose. The institution shall have the power to purchase, sell, and exchange securities on behalf of the board of trustees. The investment program shall be so managed that investments and deposits can be converted into cash when needed.
(1) Moneys may shall only be
invested in the form of investments pursuant to G.S. 159‑30(c) to
county governments and no others.or in any form of investment
established or managed by an investment advisor who is registered and in good
standing with either the Securities and Exchange Commission or the North
Carolina Secretary of State, Securities Division, and is a member of the
Securities Investor Protection Corporation. Money in endowment funds may be
invested pursuant to G.S. 147‑69.2. Provided, however, the
institution may elect to deposit at interest any local funds with the State
Treasurer for investment as special trust funds pursuant to the provisions of G.S. 147‑69.3,
and the interest thereon shall accrue to the institution as local funds.
(d) Investment
(2) The investment securities listed in G.S. 159‑30(c) may be bought, sold, and traded by private negotiation, and the institutions may pay all incidental costs thereof and all reasonable costs of administering the investment and deposit program from local funds. The institution shall be responsible for their safekeeping and for keeping accurate investment accounts and records.
(e) Interest earned on deposits and investments shall be credited to the fund whose cash is deposited or invested. Cash of several funds may be combined for deposit or investment if not otherwise prohibited by law; and when such joint deposits or investments are made, interest earned shall be prorated and credited to the various funds on the basis of the amounts thereof invested, figured according to an average periodic balance or some other sound accounting principle. Interest earned on the deposit or investment of bond funds shall be deemed a part of the bond proceeds.
(f) Registered securities acquired for investment may be released from registration and transferred by signature of the official designated by the board of trustees."
SECTION 2. This act becomes effective July 1, 2010.
