Section 7 – Securities and evidence of deposits and investments — Custody — Deposit for safekeeping.

• (1)
  • (a)
    • (i) The public treasurer shall have custody of all securities purchased or held and all evidence of deposits and investments of public funds.
    • (ii) All securities shall be delivered versus payment to the public treasurer or to the treasurer’s safekeeping bank.
  • (b) The public treasurer may deposit any of these securities with a bank or trust company to be held in safekeeping by that custodian.
  • (c) The provisions of this section do not apply to securities acquired under a nonqualifying repurchase agreement as defined in Section 51-7-3.
  • (d) The provisions of this section apply to any book-entry-only deposit or security the ownership records of which are maintained with a securities depository, in the Federal Book Entry system authorized by the U.S. Department of Treasury, or in the book-entry records of the issuer, as follows:
    • (i) the direct ownership of the deposit or security by the public treasurer shall be reflected in the book-entry records and represented by a receipt, confirmation, or statement issued to the public treasurer by the custodian of the book-entry system; or
    • (ii) the ownership of the deposit or security by the public treasurer’s custodial bank or trust company shall be reflected in the book-entry records and the public treasurer’s ownership shall be represented by a receipt, confirmation, or statement issued by the custodial bank or trust company.

• (2) The public treasurer may maintain accounts with money center banks only for the purposes of settling investment transactions, safekeeping, and collecting those investments.

Amended by Chapter 388, 2013 General Session