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This entry was published on 2014-09-22
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SECTION 107-A
Security for public deposits
Banking (BNK) CHAPTER 2, ARTICLE 3
§ 107-a. Security for public deposits. 1. As used in this section, the
following terms shall have the following meanings:

(a) "Public depositary". A bank, trust company or other depositary,
whether state or federally chartered, authorized to accept and hold
deposits of public funds under the laws of this state.

(b) "Public funds". Funds of a political subdivision.

(c) "Political subdivision". Any municipal corporation, school
district, board of cooperative educational services, district
corporation, special improvement district governed by a separate board
of commissioners or a public library.

(d) "Public deposits". Deposits of public funds in a public depositary
which are available for all uses generally permitted by the public
depositary to the depositing political subdivision for actually and
finally collected funds under the public depositary's account agreement
or policies.

2. Whenever a political subdivision is required by any general or
special law to obtain a pledge of assets or other security from a public
depositary for its public deposits and such political subdivision has
entered into a written agreement with such public depositary relating to
such public deposits and has provided written notice in a form specified
by such written agreement to the public depositary of such public
deposits, the public depositary shall comply with the provisions of such
law at the time it accepts any public deposits from the political
subdivision; provided, however, that where the public depositary and
political subdivision have agreed in writing as to the maximum amount of
security which such depositary shall provide, and the terms, conditions
and timing of the provisions of security pursuant thereto, and the
depositary has at all times complied with such agreement, it shall be
deemed to have complied with the provisions of such law for so long as
it shall comply with such agreement.