GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999
SESSION LAW 1999-251
AN ACT TO AMEND THE STATE TREASURER'S INVESTMENT AUTHORITY.
The General Assembly of North Carolina enacts:
Section 1. G.S. 147-69.1 reads as rewritten:
"§ 147-69.1.
Investments authorized for General Fund and Highway Fund Funds assets.
(a) The Governor and Council of State, with the advice and assistance of the State Treasurer, shall adopt such rules and regulations as shall be necessary and appropriate to implement the provisions of this section.
(b) This section applies to funds held by the State Treasurer to the credit of:
(1) The General Fund;
(2) The Highway Fund. Fund
and Highway Trust Fund.
(c) It shall be the duty of the State Treasurer to invest the cash of the funds enumerated in subsection (b) of this section in excess of the amount required to meet the current needs and demands on such funds, selecting from among the following:
(1) Obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States;
(2) Obligations of the Federal Financing Bank, the Federal Farm Credit Bank, the Bank for Cooperatives, the Federal Intermediate Credit Bank, the Federal Land Banks, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Housing Administration, the Farmers Home Administration, the United States Postal Service, the Export-Import Bank, the International Bank for Reconstruction and Development, the International Finance Corporation, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, and the Student Loan Marketing Association.
(3) Repurchase Agreements with respect to securities issued or guaranteed by the United States government or its agencies or other securities eligible for investment by this section executed by a bank or trust company or by primary or other reporting dealers to the Federal Reserve Bank of New York.
(4) Obligations of the State of North Carolina;
(5)
a. Savings
certificates issued by any savings and loan association organized under the
laws of the State of North Carolina or by any federal savings and loan
association having its principal office Time deposits of financial
institutions with a physical presence in North Carolina; Carolina
for the purpose of receiving commercial or retail deposits; provided that
any principal amount of such certificate deposit in excess of the
amount insured by the federal government or any agency thereof, or by a
mutual deposit guaranty association authorized by the Administrator of the
Savings Institutions Division of the Department of Commerce of the State of
North Carolina, be fully collateralized; be fully secured by surety
bonds, or
b. Certificates
of deposit issued by banks organized under the laws of the State of North
Carolina, or by any national bank having its principal office in North
Carolina; provided that any principal amount of such certificate in excess of
the amount insured by the federal government or any agency thereof, be
fully collateralized; provided further that
c. With
respect to savings certificates and certificates of deposit, the rate of
return or investment yield may not be less than that available in the market on
United States government or agency obligations of comparable maturity;
d. Shares
of or deposits in any savings and loan association organized under the laws of
the State of North Carolina, or any federal savings and loan association having
its principal office in North Carolina; provided that any moneys invested in
such shares or deposits in excess of the amount insured by the federal
government or any agency thereof, or by a mutual deposit guaranty association
authorized by the Administrator of the Savings Institutions Division of the
Department of Commerce of the State of North Carolina, be fully secured by
surety bonds, or be fully collateralized.
e.(6) Prime quality commercial
paper bearing the highest rating of at least one nationally recognized rating
service and not bearing a rating below the highest by any nationally recognized
rating service which rates the particular obligation.
f.(7) Bills of exchange or
time drafts drawn on and accepted by a commercial bank and eligible for use as
collateral by member banks in borrowing from a federal reserve bank, provided
that the accepting bank or its holding company is either (i) incorporated in
the State of North Carolina or (ii) has outstanding publicly held obligations
bearing the highest rating of at least one nationally recognized rating service
and not bearing a rating below the highest by any nationally recognized rating
service which rates the particular obligations.
g.(8) Asset-backed securities
(whether considered debt or equity) provided they bear the highest rating of at
least one nationally recognized rating service and do not bear a rating below
the highest rating by any nationally recognized rating service which rates the
particular securities.
h.(9) Corporate bonds and
notes provided they bear the highest rating of at least one nationally
recognized rating service and do not bear a rating below the highest by any
nationally recognized rating service which rates the particular obligation.
(6) Repealed by
Session Laws 1989 (Regular Session, 1990), c. 813, s. 10.
(d) Unless otherwise
provided by law, the interest or income received and accruing from all deposits
or investments of such cash balances shall be paid into the State's General
Fund, except that all interest or income received and accruing on the monthly
balance of the Highway Fund Fund and Highway Trust Fund shall be
paid into the State Highway Fund. Fund and Highway Trust Fund. The
cash balances of the several funds may be combined for deposit or investment
purposes; and when such combined deposits or investments are made, the interest
or income received and accruing from all deposits or investments shall be
prorated among the funds in conformity with applicable law and the rules and
regulations adopted by the Governor and Council of State.
(e) The State Treasurer shall cause to be prepared quarterly statements on or before the tenth day of January, April, July and October in each year, which shall show the amount of cash on hand, the amount of money on deposit, the name of each depository, and all investments for which he is in any way responsible. Each quarterly statement shall be delivered to the Governor and Council of State; and a copy shall be posted in the office of the State Treasurer for the information of the public.
(f) Repealed by Session Laws 1989 (Regular Session, 1990), c. 813, s. 10.
(g) If and to the extent the General Assembly shall authorize the sale of all or any part of the stock owned by the State in the North Carolina Railroad Company or the Atlantic and North Carolina Railroad Company, the proceeds of any sale shall be separately accounted for and invested as expressly directed by the General Assembly, but in the absence of any express direction as to investment, the proceeds may be invested as authorized by this section."
Section 2. G.S. 147-69.2(a) reads as rewritten:
"(a) This section applies to funds held by the State Treasurer to the credit of:
(1) The Teachers' and State Employees' Retirement System,
(2) The Consolidated Judicial Retirement System,
(3) The Teachers' and State Employees' Hospital and Medical Insurance Plan,
(4) The General Assembly Medical and Hospital Care Plan,
(5) The Disability Salary Continuation Plan,
(6) The Firemen's and Rescue Workers' Pension Fund,
(7) The Local Governmental Employees' Retirement System,
(8) The Legislative Retirement System,
(9) The Escheat Fund,
(10) The Legislative Retirement Fund,
(11) The State Education Assistance Authority,
(12) The State Property Fire Insurance Fund,
(13) The Stock Workers' Compensation Fund,
(14) The Mutual Workers' Compensation Fund,
(15) The Public School Insurance Fund,
(16) The Liability Insurance Trust Fund,
(17) Trust funds of The University of
North Carolina and its constituent institutions deposited with the State
Treasurer pursuant to G.S. 116-36.1, and
(17a)(18) North Carolina Veterans Home Trust Fund.
Fund,
(19) North Carolina National Guard Pension Fund,
(20) Retiree Health Premium Reserve Account, and
(18)(21) Any other special fund
created by or pursuant to law for purposes other than meeting appropriations
made pursuant to the Executive Budget Act."
Section 3. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 23rd day of June, 1999.
s/ Dennis A. Wicker
President of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 9:20 a.m. this 2nd day of July, 1999